As investor pressure for improved sustainability reporting increases, the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) are to merge into a unified international organisation, the Value Reporting Foundation
The move is intended to provide investors and companies with a comprehensive corporate reporting framework for communicating about integrated thinking, intangible values and long-term value creation.
Robert Steel, chair, SASB Foundation board of directors, said: ‘Capital markets are hungry for information linked to enterprise value creation, but they cannot easily digest what comes from a fragmented reporting landscape.
‘This merger is an important step towards businesses and investors communicating with clarity and ease about the issues that matter most to financial performance.’
Steel said the merger directly responds to calls from global investors and corporates to simplify the corporate reporting landscape.
Barry Melancon, IIRC board chair, said: “The <IR> Framework and the SASB standards are complementary.
‘Integrated reporting describes all relevant value creation topics and the approach to integrating them in corporate thought and reporting.
‘SASB provides the precise definitions of the data that should be reported for these topics in each industry.
‘Under the Value Reporting Foundation, we will link the concepts between the <IR> Framework and SASB Standards even further.’
The Value Reporting Foundation will be formed by mid 2021 and will be led by Janine Guillot, currently CEO of SASB. It will be headquartered in London and San Francisco, with staff around the world. It could eventually integrate with other entities focused on enterprise value creation.
Guillot said: ‘Sustainability disclosure is at the top of the agenda for many, creating incredible momentum towards simplifying the corporate reporting landscape.
‘By merging two organisations focused on enterprise value creation, we hope to clarify the field. We stand ready to engage with the efforts of the IFRS Foundation, IOSCO, EFRAG, and others working towards global alignment on a corporate reporting system.’