SASB Auto Parts

1. Download the SASB Auto Parts Standard: Access the free SASB Auto Parts standard from the SASB website (sasb.org). Review the full standard document, including the industry description, disclosure topics, and associated accounting metrics.

1. Conduct a Materiality Assessment: Map your organization's existing sustainability activities and risks against the SASB Auto Parts standard's defined disclosure topics to identify which metrics are most relevant to your operations.

1. Assemble a Cross-Functional Reporting Team: Engage stakeholders from sustainability, finance, legal, operations, and supply chain to gather the quantitative and qualitative data required by each applicable metric.

1. Collect and Validate Data: Gather historical and current performance data for each applicable SASB metric. Establish internal data collection processes and controls to ensure accuracy and consistency across reporting periods.

1. Draft SASB-Aligned Disclosures: Prepare disclosures using the SASB-specified units of measure, calculation methodologies, and reporting boundaries. Align language with the standard's technical protocols.

1. Consider Third-Party Assurance (Optional): Engage an independent assurance provider to verify the accuracy of disclosed metrics. While not required by SASB, third-party assurance increases credibility with investors and ESG rating agencies.

1. Publish Disclosures: Incorporate SASB-aligned disclosures into your annual sustainability report, integrated report, or SEC filings. Reference the SASB Auto Parts standard explicitly and indicate the reporting period.

1. Monitor Standard Updates: Check the SASB/IFRS Foundation website for revisions to the Auto Parts standard and update your disclosures accordingly in subsequent reporting cycles.

The SASB Auto Parts standard defines disclosure topics and associated accounting metrics that are considered financially material for the auto parts manufacturing sector. Organizations report against these topics using standardized units of measure and calculation methodologies.

Energy Management: Metrics cover total energy consumed, percentage from grid electricity, and percentage from renewable sources. This topic reflects the sector's significant energy intensity and exposure to energy price volatility and carbon regulation.

Greenhouse Gas Emissions: Disclosures include Scope 1 direct emissions and the associated management approach. Companies are expected to report in metric tons of CO₂ equivalent and describe strategies for emissions reduction.

Air Quality: Metrics address emissions of air pollutants including NOx, SOx, volatile organic compounds (VOCs), and particulate matter — reflecting regulatory exposure in manufacturing operations.

Water Management: Disclosures cover total water withdrawn, water consumed, and the percentage in regions with high or extremely high baseline water stress, recognizing water as a material operational risk.

Hazardous Waste Management: Metrics include total hazardous waste generated and the percentage recycled, reflecting regulatory and reputational risks associated with chemical use in auto parts production.

Product Safety: Disclosures address the number of recalls and units recalled, as well as the percentage of active suppliers that have been audited for quality and safety — a critical topic given the safety-critical nature of many auto components.

Materials Sourcing: Metrics cover the percentage of input materials sourced from Tier 1 suppliers and the use of conflict minerals (3TG), reflecting supply chain transparency expectations from investors and regulators.

Labor Practices: Disclosures include employee injury rates, fatality rates, and near-miss frequency, as well as the percentage of employees covered by collective bargaining agreements — reflecting the labor-intensive nature of auto parts manufacturing.

The SASB Auto Parts standard is part of the broader SASB Standards suite, which was developed by the Sustainability Accounting Standards Board and is now administered by the IFRS Foundation following a 2022 consolidation. SASB standards have become a de facto baseline for investor-grade ESG disclosure in the United States, with hundreds of large-cap companies across sectors referencing SASB in their sustainability reports and SEC filings. The auto parts sector specifically has seen growing adoption among Tier 1 suppliers and publicly traded component manufacturers as institutional investors — including major asset managers like BlackRock and Vanguard — have made SASB alignment a standard expectation in ESG engagement.

The standard's integration into the IFRS Sustainability Disclosure Standards (ISSB) framework — specifically as industry-based guidance supplementing IFRS S1 and S2 — has significantly elevated its global relevance. Companies reporting under ISSB are encouraged to use SASB metrics as the industry-specific component of their disclosures, which has accelerated adoption in jurisdictions adopting ISSB-aligned regulations, including Canada, the UK, Australia, and Japan. This positions SASB Auto Parts as increasingly relevant beyond its original U.S.-centric audience.

Compared to alternatives, SASB occupies a distinct niche: it is investor-focused and financially material, whereas GRI is broader and stakeholder-oriented. CDP focuses specifically on climate, water, and forests. ISO 14001 is a management system standard requiring third-party certification. SASB's free-to-use model and its alignment with ISSB give it a competitive advantage in the capital markets context, though companies in the auto parts sector often use multiple frameworks simultaneously to satisfy different stakeholder audiences. Demand for SASB-aligned reporting is growing, driven by regulatory pressure, investor stewardship policies, and the mainstreaming of ESG integration in equity analysis.

The Sustainability Accounting Standards Board (SASB) was founded in 2011 by Jean Rogers in San Francisco with a mission to develop industry-specific sustainability accounting standards for use by U.S. publicly listed companies in their SEC filings. Modeled on the financial accounting standards-setting process, SASB used a rigorous methodology involving industry working groups, investor input, and public comment periods to identify sustainability topics that are financially material to each of 77 industries — including Auto Parts, which falls within the Transportation sector of SASB's Sustainable Industry Classification System (SICS).

SASB published its full suite of provisional standards in 2016 and released the codified standards in 2018 following extensive stakeholder consultation. The Auto Parts standard was among the original 77 industry standards developed during this period. A major milestone came in 2022 when SASB merged with the International Integrated Reporting Council (IIRC) to form the Value Reporting Foundation, which was subsequently consolidated into the IFRS Foundation — the same body that oversees international financial reporting standards. This consolidation positioned SASB standards as the industry-specific baseline for the newly formed International Sustainability Standards Board (ISSB), whose IFRS S1 and S2 standards explicitly reference SASB metrics as recommended industry-based disclosure guidance. As of 2023, the IFRS Foundation assumed full stewardship of the SASB Standards, cementing their role in the global sustainability disclosure architecture.