AGA Criticizes SASB Proposed Procedures for Developing Sustainability Reporting Standards

Policy July 07, 2016

On July 6, 2016, AGA submitted comments to the non-governmental organization (NGO) Sustainability Accounting Standards Board (SASB) on Proposed Rules of Procedure that SASB would use to develop and maintain its purported voluntary standards for reporting sustainability issues -- if financially material -- in financial reports required by Securities and Exchange Commission (SEC). While SASB asserts that it is an accredited American National Standards Institute (ANSI) standards developer, AGA demonstrates that SASB’s proposed procedures and governance structure fall far short of meeting ANSI requirements for balanced representation of affected industries for the development of ANSI-qualifying consensus standards. SASB’s failure to follow ANSI requirements and its failure to obtain expert input from the natural gas utility industry led SASB to issue draft and provisional “standards” that would not produce relevant, useful, or material information for investors.

A copy of AGA's comments are attached.

160706 AGA Comments on SASB Procedures472.17 KB