The ISSB's sustainability disclosure standards — IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures) — are designed as cross-sector frameworks. But buried within them is something far more specific: industry-based disclosure guidance derived from SASB standards, covering 77 industries across 11 sectors. This guidance tells companies exactly which sustainability topics and metrics are most likely to be material in their sector.
For a detailed comparison of how ISSB's financial materiality approach differs from the EU's double materiality under ESRS, see our ISSB vs. ESRS materiality assessment process analysis.
How Industry-Based Guidance Works Under ISSB
The ISSB did not invent this guidance from scratch. When the IFRS Foundation absorbed the SASB (Sustainability Accounting Standards Board) in 2022, it inherited decades of industry-specific research across 77 industries. This research now forms the backbone of the ISSB's industry-based guidance.
The Legal Weight: "Shall Refer To and Consider"
IFRS S1 paragraph 54 requires entities to "refer to and consider the applicability of" the industry-based guidance when identifying sustainability-related risks and opportunities. IFRS S2 paragraph 33 uses the same language for climate-specific industry metrics.
This phrasing is deliberate. It means:
- Mandatory to engage with the guidance — you cannot ignore it
- Not mandatory to disclose every metric — you apply judgment about what is material
- An entity that considers the guidance and determines certain metrics are immaterial can exclude them, provided the reasoning is defensible
- An entity that ignores the guidance entirely would be non-compliant
In practice, the industry-based guidance serves as a structured starting point for your materiality assessment. It tells you where to look, not what to find.
The 11 SICS Sectors
The Sustainable Industry Classification System (SICS) organises the economy into 11 sectors. Unlike traditional financial classifications (GICS, ICB), SICS groups industries by shared sustainability risk profiles rather than market characteristics.
| Sector | Industries | Key Sustainability Themes |
|---|---|---|
| Consumer Goods | 8 | Product safety, supply chain labour, packaging waste |
| Extractives & Minerals Processing | 8 | GHG emissions, water, tailings, community relations |
| Financials | 7 | Financed emissions, climate credit risk, systemic risk |
| Food & Beverage | 8 | Water use, land use, food safety, supply chain |
| Health Care | 6 | Drug safety, access to medicines, clinical ethics |
| Infrastructure | 8 | Energy management, physical climate risk, building performance |
| Renewable Resources & Alternative Energy | 4 | Resource management, ecological impacts |
| Resource Transformation | 5 | Energy, waste, hazardous materials, worker safety |
| Services | 7 | Data security, labour practices, environmental footprint |
| Technology & Communications | 6 | Data privacy, energy use (data centres), e-waste |
| Transportation | 10 | Fuel management, fleet efficiency, accident safety |
Total: 77 industries. Of these, 68 have climate-specific metrics under IFRS S2's industry-based guidance. The remainder have sustainability topics covered under IFRS S1 but no dedicated climate metrics.
Key Disclosure Topics Across Sectors
While each industry has its own specific metrics, several disclosure topics recur across multiple sectors. Understanding these common themes helps companies benchmark their materiality assessment against cross-industry expectations.
GHG Emissions
Relevant to virtually every sector. Metrics typically include absolute Scope 1 and 2 emissions, emissions intensity ratios (per unit of production, revenue, or floor area), and Scope 3 emissions where material. The level of detail varies by industry — an oil and gas company will report methane separately, while a financial services firm focuses on financed emissions.
Energy Management
Particularly material for energy-intensive industries (extractives, manufacturing, real estate, technology). Metrics include total energy consumed, percentage from renewable sources, and energy intensity. For data centres and real estate, power usage effectiveness (PUE) and energy intensity per square metre are standard.
Water Management
Critical for extractives, food and beverage, and infrastructure sectors. Metrics include total water withdrawn, consumed, and discharged, with particular attention to operations in water-stressed regions. Climate change amplifies water risk through drought and flooding patterns.
Human Capital
Spans all sectors but takes different forms. In extractives, the focus is on workforce health and safety (fatality rates, injury rates). In financial services and technology, it centres on diversity, inclusion, and talent retention. In manufacturing, it includes labour relations and supply chain working conditions.
Business Model Resilience
How the company's strategy holds up under different climate and sustainability scenarios. This is particularly relevant for sectors facing structural transition risks — fossil fuels, automotive, agriculture, and financial services with exposure to carbon-intensive lending.
Sector Deep-Dives
We have published detailed guides for four high-impact sectors that are especially relevant to companies reporting under ISSB-aligned frameworks in Australia, Singapore, the UK, and Canada:
Mining & Resources
The Extractives & Minerals Processing sector faces some of the most complex disclosure requirements — from GHG emissions and water management to tailings safety and community relations. Mining companies must navigate both physical climate risks (water scarcity, extreme heat) and transition risks (declining demand for thermal coal, rising demand for critical minerals). Read our full guide: ISSB Climate Disclosure for Mining & Resources.
Financial Services
Banks, insurers, and asset managers face a unique challenge: their most material climate exposure is indirect, sitting in their lending, investment, and underwriting portfolios. Financed emissions, climate credit risk, and insurance underwriting exposure are the key industry-specific metrics. See: ISSB Climate Disclosure for Financial Services.
Oil & Gas
No sector has more detailed ISSB industry metrics than oil and gas. From Scope 3 Category 11 emissions (use of sold products) to reserves valuation under climate scenarios, methane tracking, and carbon pricing exposure, E&P companies face the most granular disclosure requirements. See: ISSB Climate Disclosure for Oil & Gas.
Real Estate & REITs
Real estate is directly exposed to physical climate risks (flooding, storms, extreme heat) and transition risks (building energy performance regulations, green building standards). The industry-based metrics focus on energy management, water use, green building certifications, and tenant sustainability engagement. See: ISSB Climate Disclosure for Real Estate & REITs.
How Jurisdictions Reference Industry Guidance
The ISSB's industry-based guidance has been adopted or referenced by all four major jurisdictions that have endorsed IFRS S1 and S2. None of them modified the guidance — they adopted it as-is:
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Australia (AASB S2): Incorporates the industry-based guidance by reference. Companies in Groups 1-3 must consider the SASB-derived metrics when assessing climate materiality. Given Australia's mining, banking, and energy sectors, the industry guidance is particularly relevant. See our AASB S2 guide.
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Singapore (SGX): The SGX climate reporting framework references ISSB industry-based metrics as a consideration. STI constituents and larger listed companies should use the SICS classification to identify relevant disclosure topics. See our SGX guide.
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United Kingdom (UK SRS): The UK Endorsement Board retained the industry-based guidance references when endorsing UK SRS. With UK SRS S2 mandatory from January 2027, London-listed companies must engage with the sector-specific metrics. See our UK SRS guide.
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Canada (CSDS): CSDS 1 and 2 retain the "refer to and consider" requirement for industry-based guidance. Canadian mining, oil and gas, and financial services companies will find the sector-specific metrics directly applicable. See our CSDS guide.
How to Use Industry Metrics in Your Materiality Assessment
Here is a practical approach to integrating SASB industry-based guidance into your ISSB materiality assessment:
1. Identify your SICS classification. Start at sasb.ifrs.org and find your industry within the 11 SICS sectors. If your company spans multiple industries (e.g., a conglomerate with mining and financial services), consider each segment separately.
2. Review the applicable disclosure topics. Each industry has between 3 and 12 disclosure topics with associated metrics. These are your starting checklist — not your final list.
3. Assess financial materiality. For each topic, ask: could this sustainability matter reasonably be expected to affect our cash flows, access to capital, or cost of capital over the short, medium, or long term? If yes, it is likely material and should be disclosed.
4. Consider cross-industry topics. Some risks (e.g., data security, supply chain labour) may be material to your business even if they are not highlighted in your specific industry's guidance. IFRS S1 requires you to look beyond the industry-based guidance where relevant.
5. Document your reasoning. For each topic you include or exclude, record why. Auditors and assurance providers will expect to see evidence that you considered the guidance and applied sound judgment.
For a detailed walkthrough of the four-step ISSB materiality assessment process, see our ISSB vs. ESRS process analysis. If you are also subject to CSRD/ESRS requirements, you can run both assessments in parallel — the financially material topics identified through ISSB will be a subset of your double materiality results.
How Materiality Master Can Help
Materiality Master provides a structured, software-guided approach to ISSB-aligned materiality assessments. The platform helps you identify industry-relevant risks and opportunities, assess their financial materiality, and generate audit-ready documentation — whether you are reporting under AASB S2, SGX, UK SRS, or CSDS. See our pricing for details.
Frequently Asked Questions
Are SASB industry metrics mandatory under ISSB?
Not as standalone requirements. IFRS S1 (paragraph 54) requires entities to "refer to and consider the applicability of" SASB standards when identifying material sustainability information. The metrics serve as guidance, not a checklist. Companies must use judgment to determine which metrics are material to their business.
How many industries does the ISSB guidance cover?
77 industries across 11 SICS sectors. For climate specifically, IFRS S2's industry-based guidance provides metrics for 68 of those industries. Each industry has specific disclosure topics and metrics covering areas like GHG emissions, water management, human capital, and business model resilience.
Do I need to report every metric listed for my industry?
No. The industry-based guidance helps you identify what might be material, but you only disclose what passes your financial materiality assessment. If a metric is not relevant to your business or would not influence investor decisions, you are not required to report it.
How does SASB industry guidance differ from ESRS sector standards?
SASB metrics focus on financial materiality — how sustainability issues affect enterprise value. ESRS sector standards (when finalised) will apply double materiality, also considering how the company impacts the environment and society. The two may overlap on specific metrics but differ in scope and purpose.
