The Investor Advisory Group (IAG) of the Sustainability Accounting Standards Board (SASB) has issued an updated statement calling on companies to use SASB Standards in disclosures to investors.

The move is aimed at improving the comparability of ESG-related data and enable integration of ESG considerations into investment and stewardship decisions across global portfolios and asset classes.

The IAG’s 55 members are spread across 12 countries with $41 trillion in assets under management. Among the updates made to the IAG Statement, when compared with the founding Statement, is the affirmation that “other reporting standards and frameworks may complement SASB Standards, but are not replacements for them.”

Among sustainability reporting standards and frameworks, SASB Standards are tailored specifically to help companies communicate with investors because they are industry-specific, metric-driven, and focused on financial materiality.

“Amidst growing momentum this year, global investors agree that we need more standardized data on the ESG factors that impact enterprise value creation,” said Eivind Lorgen of Nordea Asset Management, North America and Chair of the IAG. “As expressed in our updated statement, the IAG wants companies around the world to use SASB Standards in order to improve the comparability and quality of ESG information we need as investors.”

“Within the broader landscape of sustainability disclosure, SASB Standards are specifically designed to meet investor needs,” says Ole Buhl, Vice President and Head of ESG at ATP and a member of the SASB IAG. “That’s why the IAG is asking companies to use the SASB Standards as a core part of their disclosure.”