Ingersoll Rand (NYSE:IR), a world leader in creating and sustaining safe, comfortable and efficient environments, is supporting the newly launched Sustainability Accounting Standards Board ( SASB ) by serving on its Advisory Council. The SASB brings together the knowledge and experience of various industry working groups to define the financial value of sustainability and promote sustainability’s contribution to business success.
“Ingersoll Rand has a long history of helping our customers be more competitive in responding to large global challenges, such as food safety, personal security and indoor comfort. Our ability to create value for our stakeholders by developing sustainable, innovative new products is rooted in the understanding that expectations are rising regarding raw materials, resource use and environmental performance,” said Jeff Hynds, director of innovation for the Center for Energy Efficiency and Sustainability (CEES) at Ingersoll Rand and SASB Advisory Council member. “For us, sustainability is a business lever that helps deliver growth and productivity, while reducing business risk.”
The SASB aims to develop and disseminate sustainability accounting standards in 89 industries. SASB standards will identify, prioritize and describe material non-financial risks and opportunities, such as those involved in risk and supply chain management, as well as stakeholder engagement, and provide decision-useful information for the benefit of companies, investors and the public. The universe of sustainability issues the SASB will address for all industries includes: environmental, community, employees, customers, leadership and governance, business model and innovation, products and services, and supply chain.
Through its work, SASB will help company leaders understand the key performance indicators (KPIs) and material value of sustainability in their industries. Healthcare is the first sector the SASB will evaluate, with findings and KPIs planned to be released during the first half of 2013.“Ingersoll Rand will leverage the key performance indicators the SASB process will provide to increase the value we offer to customers and shareholders while raising sustainability to the same level of transparency as ‘quality’ and ‘reliability’ are today. Over time, the SASB will help companies better understand their fiduciary responsibility to address sustainability issues,” noted Hynds.