Accounting For Sustainability

A number of U.S. states have created new corporate forms that let companies focus on sustainability and other social goals, as well as shareholder value. [See " Risk & Responsibility," MoFo Tech, Spring/Summer 2012]. Now, we are seeing the "logical next step" in corporate sustainability, says Morrison & Foerster partner Susan Mac Cormac, with the formation in October 2012 of the Sustainability Accounting Standards Board. In those new corporate forms, companies are required to use best practices for reporting on social and environmental factors–and the SASB is establishing those best practices.

The board is determining what is material in terms of sustainability and disclosure and creating industry-specific standards for including sustainability information in Form 10-K and other filings. These standards are designed for use by all public companies, whether they are using the new or traditional corporate forms. The SASB plans to develop standards for 89 industries