Companies in the technology and communications sector now have some new standards to consider on how to report on material sustainability issues.

The sustainability standards for the technology and communications sector, released today, marks the third 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.

“Technology and communications is a unique sector in that it's evolving so quickly,” says Jean Rogers, founder and executive director of SASB. “Traditional business models and governance structures are being disrupted and companies are innovating to stay relevant.”

“Within this innovation, companies have the potential to impact society in profound ways,” Rogers adds. “SASB standards help investors understand and compare the material sustainability risks and opportunities that companies face in this quickly changing field.”

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.

SASB's standards for the technology and communications sector will focus on sustainability issues in six industries:

Electronic manufacturing services and original design manufacturing;

Hardware;

Internet Media & Services;

Semiconductors;

Software & IT Services; and

Telecommunications.

Examples of issues included are waste and water management in manufacturing; data privacy and freedom of expression; and supply chain management and materials sourcing.   

SASB said it has gained consensus around these issues in the technology and communications sector by working with 215 participants in an industry working group representing publicly traded companies with more than $1.9 trillion market capital, and investment firms with more than $2.3 trillion in assets under management.

In addition to the technology and communications sector, SASB also has issued standards for the healthcare and financial services industries.

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.