Companies in the financial sector will have some new standards to consider on how to report on material sustainability issues.

The sustainability standards for the financial sector, expected to officially be issued this week, will mark the second set in a planned industry-focused series of standards by the Sustainability Accounting Standards Board that tells companies how to account for environmental, social, and governance (ESG) matters that would be material to the company's performance. The non-profit board, funded by a handful of foundations, has conducted research to determine what sustainability issues would be regarded as material, then developed standards working with industry representatives on how to report on them.

The board, which began its standard-setting activity in October 2012, is focusing on material sustainability issues that public companies are already required to report in their Form 10-K. SASB's first group of standards focused on the health care sector. In all, the group said it will develop standards for at least 80 industries in 10 sectors through the beginning of 2016.

“The financial sector is unique in that it's comprised of both issuers and investors,” says Jean Rogers, founder and executive director of SASB. “As issuers, financials companies can compete and improve performance on the sustainability issues most relevant to business success. As investors, financials companies can compare corporate performance on material sustainability issues and direct capital accordingly.”

SASB's standards for the financial sector will focus on sustainability issues in seven financial industries: commercial banks; investment banking and brokerage; asset management and custody activities; consumer finance; mortgage finance; security and commodity exchanges; and insurance. For commercial banks, for example, standards could focus on the integration of ESG considerations in credit risk analysis, customer privacy and security, legal and regulatory compliance, and systemic risk management.

SASB said it has gained consensus around these issues in the financial sector by working with 302 participants in an industry working group representing publicly traded companies with more than $1.3 trillion market capital, and investment firms with more than $5 trillion in assets under management.

SASB is looking for industry participants who would be willing to help with the standard-setting process for sectors such as transportation, services, resource transformation, consumption, renewable resources and alternative energy, and infrastructure. View the full schedule of SASB's standards developments here.