PD Pathways

SASB is the Sustainability Accounting Standards Board, a not for profit organization based in San Francisco, that develops sustainability accounting standards primarily for US public companies. SASB restructured its governance in 2017, to mirror FASB and IASB’s structure^[1], and released its first ESG reporting standards in 2018^[2]. 

SASB’s website has a few online tools, including the Materiality Finder. This tool allows you to look up, by industry, relevant issues that would drive requirements for ESG metrics, for public companies in a specific sector. You can find metrics that your company should consider in two ways: 

1. Search by industry; or, 
2. Search by company. 

For example, if your company is in the telecommunications hardware industry, you could look up Apple by name, or use their stock ticker, AAPL. Alternatively, you could search the “Find Your Industry” section, selecting “Technology and Communications” followed by “Hardware Industry”. Either way, the Materiality Finder delivers a parsed list of relevant issues for which metrics for ESG are recommended. In the sample below, the number of relevant issues has been reduced from a potential list of twenty-six (26), down to five (5) – a wonderful time savings for a busy Controller or CFO.

_{Source: SASB. Materiality Finder > Find Industry Topics > Apple Inc.. Accessed March 17, 2022. Table. Sasb.org. https://www.sasb.org/standards/materiality-finder/find/?company[]=US0378331005}

You will note that each relevant issue has a question mark to its right; a rollover, explaining each in more depth. Further information is available, in a section below, called Information Disclosures, and the full standard for the industry can also be downloaded.

From there, you can review the annual reports and SEC filings for the public companies in your industry, to get specific ESG metric ideas for each issue. The Materiality Finder kickstarts your journey to identify some initial ESG metrics, and provides a comprehensive map of the key areas that, over time, you will want to address. In other words, you get an opportunity to create your first ESG metrics, now, and you have a list of all relevant issues, to fill in the gaps for the future. 

There are other tools on the SASB website including a Materiality Map. It can all be accessed here: https://www.sasb.org/standards/materiality-map/. If you are interested in better understanding the need for CPAs of non public companies to learn about ESG and adopt metrics for your company, the following articles are helpful: Understanding the need for an ESG strategy; Doughnut Economics and the push for regenerative, distributive systems; Why ESG matters for CPAs.

ESG is a new, exciting frontier for CPAs. In addition to tools like the SASB Materiality Finder, connect with your network of other CPAs to share best practices, so that all BC companies are ready for the future.

_{[1] Michael Cohn, “SASB reconfigures board structure,” Accounting Today, May 11, 2017, https://www.accountingtoday.com/news/sasb-reconfigures-board-structure.}

_{[2] Nina Trentmann, “SASB Launches Sustainability Accounting Standards”, CFO Blog, Wall Street Journal, November 7, 2018, https://www.wsj.com/articles/sasb-launches-sustainability-accounting-standards-1541603218.} 

MIA MAKI, BA, MBA, FCPA, FCMA is a Principal of a consulting firm and a Professor with the University of Victoria Gustavson School of Business, with over 25 years of teaching experience. She has worked in Finance and Accounting since 1986 and has experience in a wide variety of industries, including audio technology, airlines and aviation, not-for-profit, public accounting, marine transportation, fisheries monitoring, gaming and other technology arenas. She has worked for both private and public companies, has participated in raising over $50M in funds, and has experience in international initiatives.

Learn more from Mia at one of her upcoming sessions this Spring/Summer: Controller's Operational Skills Program; Strategic Management Certificate Program (SMCP); Advanced Strategic Management Certificate Program - Maps

Fortunately, there are some relatively simple shifts that managers and leaders can consider to foster a culture of engagement and ultimately retention.  Here are five ways to do just that. 

Understand and actively encourage collaboration

At its core, collaboration means a group of individuals working together to achieve a goal. But as a leader, are you taking the proper steps to creating a true collaborative team? Effective collaboration isn’t limited to simply scheduling weekly team meetings, it includes creating a proper culture and fair workflows, understanding the team and its diversity, aligning teams to projects, and building in time for proper feedback. By having true collaboration, teams can benefit from improved communication, shared learnings and experiences, and feeling included in a shared culture. 

Learn more about Achieving Results Through Collaborative Projects 

Run virtual meetings people want to attend

The hybrid work model is likely here to stay. While the issue of disengagement among certain employees has been nothing new for the past two years, the relative permanence of hybrid work means that it’s important to seriously address “virtual disengagement”. We all do it sometimes -  it’s tempting to turn your camera off during meetings and continue working on the side. Yet in the long run, this can make meetings increasingly ineffective and frustrating for everyone. Be honest about how big an issue this really is in your team or organization, then explore best practices and recent research on new and innovative ideas on how to run effective virtual meetings. 

Learn more about Dispelling the Myth of "Effective Meetings": Engaging Virtual Meetings Your Employees Will Want to Attend

Identify barriers to virtual team performance

Ineffective virtual meetings are not the only challenge to the hybrid work model. Leaders and employees face other barriers that can affect work performance – from home distractions, self-discipline, dispersed physical locations, inconsistent work hours, to lack of proper technologies and other office attributes. Properly diagnosing and then working to overcome these barriers is a key step to fostering more employee engagement, and ensuring your virtual team’s future success.   

Learn more about the Seven Steps to Successful Virtual Teamwork

Use delegation properly as a tool for engagement

Improving how we work together virtually does not solve all the issues related to a lack of engagement. At the end of the day, individuals feel truly engaged when they have some form of accountability and empowerment over their responsibilities. Delegation is not a skill that leaders should use with only their own efficiencies in mind – done well, it can be the difference-maker in driving employee performance, engagement, and ultimately retention. Are you delegating too much or too little? Are you delegating to the right people? Is the delegation equitable? Effective delegation can lead to greater clarity in communication, accountability, participation, and empowerment – all important ingredients in creating a truly engaging environment.  

Learn more about Employee Delegation, Engagement and Empowerment

Create empowerment through your management style

Management styles can impact working relationships, with more passive styles often leading to lower employee engagement. Empowerment enters the frame again here as individuals who are consistently given constructive feedback and made to feel more involved in their roles, will more likely develop a sense of empowerment over their own growth in the organization. A coaching type of management, based on effective listening and questioning techniques, is one example of a leadership style that can contribute to a more supportive, empowering, and engaging environment in many diverse situations. 

Learn more about Empowering and Engaging Others