Companies in the non-renewable resources sector now have some new standards to consider on how to report on material sustainability issues.

The sustainability standards for the non-renewable resources sector, released June 25, mark the fourth 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. So far, SASB has also published standards for the health care, financials, technology, and communications sectors. 

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 non-renewable resources sector faces distinct risks, such as increased regulatory pressure due to carbon emissions and the need for a culture of safety and emergency preparedness,” says Jean Rogers, founder and executive director of SASB. “Conversely the sector faces unique opportunities stemming from product innovation and maintaining positive relations with key stakeholders such as communities directly affected by their activities.”

SASB's standards focus on sustainability issues in eight industries in the non-renewable resources sector: oil and gas—exploration and production; oil and gas—midstream; oil and gas—refining and marketing; oil and gas—services; coal operations; iron and steel producers; metals and mining; and construction materials. Examples of issues included are greenhouse gas emissions; air quality; community relations; and health, safety, and emergency management.   

SASB said it has gained consensus around these issues in the non-renewable resources sector by working with 221 participants in an industry working group representing publicly traded companies with more than $2 trillion market capital, and investment firms with more than $3.3 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, infrastructure, and more. View the full schedule of SASB's standards developments here.