The SASB Standards Board is launching a project to set standards for renewable energy in the electric utility and power generator industry.
The project, approved by the SASB Standards Board at its July 8 meeting, will investigate ways to measure how the utilities perform as they transition to renewable energy on a decarbonization pathway. The objective is to give full and comparable information to investors and other users of SASB standards, which are globally applicable, industry-specific standards to identify the minimal set of financially material sustainability topics and associated metrics for a typical company in an industry.
Given market feedback about the limited disclosure in some markets related to renewable energy in the in the electric utility and power generator industry, "there are opportunities to investigate other ways to measure company performance beyond" a current renewable portfolio standards metric, the board said in a meeting update Thursday.
An expected increase in demand for electricity coupled with emissions reduction goals, further support the project, a project description said.
The board will consider new or revised metrics and ways to enhance international applicability.
The next phase is to consult with companies and investors on where the project will lead, SASB said.
SASB standards are now part of the Value Reporting Foundation, the organization created by its June merger with the ESG-standard-setting organization International Integrated Reporting Council.