Justin Bazalgette on Licensing ISSB and SASB Standards

Why It Matters

Uniform ISSB and SASB standards generate comparable ESG data, enabling investors and regulators to assess risk more accurately and allocate capital efficiently.

Key Takeaways

• Standardized ISSB reporting streamlines investor and stewardship analysis
• Companies can concentrate on fewer material KPIs, boosting efficiency
• Enhanced KPI focus improves risk mitigation and opportunity capture
• Jurisdictions benefit from evolving reporting standards and regulatory alignment
• Assurance providers and shareholders gain clearer, comparable performance data

Summary

In this briefing, Justin Bazalgette discusses the licensing of International Sustainability Standards Board (ISSB) and Sustainability Accounting Standards Board (SASB) frameworks, emphasizing how their integration can modernize ESG reporting across markets. He argues that adopting a unified set of standards simplifies the disclosure process for investors, stewardship organizations, and the companies themselves, allowing all parties to focus on a concise set of material key performance indicators (KPIs).

Bazalgette highlights that a narrowed KPI focus not only improves operational efficiency but also strengthens risk management and uncovers new growth opportunities. By concentrating on metrics that truly matter to each business, firms can better understand their sustainability exposure and act proactively. The standardized approach also facilitates more consistent assurance and comparability, which is critical for capital allocation decisions.

He notes, “It allows them to really focus their reporting on a smaller number of KPIs… improving their own understanding of those criteria and they can improve the mitigation of risk, take greater advantage of the opportunities that that presents.” This sentiment underscores the practical benefits of harmonized reporting for both issuers and users of ESG data.

The broader implication is a more coherent reporting ecosystem that benefits regulators, standard‑setters, assurance providers, and shareholders alike. Over time, jurisdictions that adopt ISSB and SASB standards can expect higher quality disclosures, reduced compliance costs, and a more transparent market for sustainable investment.

Original Description

Justin Bazalgette, Associate Director at Federated Hermes Limited, highlights the value of licensing ISSB and SASB Standards.