Amid much debate about the need for harmonisation of sustainability metrics, The Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC) have finalised their merger to become the Value Reporting Foundation.
Under the new umbrella organisation they will continue to help organisations with their reporting, and investors with their analysis, through three avenues: integrated thinking principles, the integrated reporting framework, and SASB standards.
“We have listened to the strong demand from businesses and investors for a simplified corporate reporting landscape. By combining the tools, resources and relationships of SASB and IIRC, the Value Reporting Foundation will continue to advance progress towards a more coherent landscape and continue to support the important efforts of the IFRS Foundation. The end result will be comparable, consistent and reliable information that enables more holistic decision making by businesses and investors.” Janine Guillot says, CEO of the new organisation, and former CEO of SASB.
The merger is aimed at simplifying sustainability reporting for listed companies, and remove the overlap and confusion (and potential green-washing) that stems from too many distinct frameworks. With the overarching goal being better environmental and social outcomes as non-financial factors are more accurately factored into investment decision making.
Rise of the ISSB
With ESG surging in popularity there’s huge pressure to produce a set of standards that will gain wide-spread adoption. However the tension between developing frameworks that are both reliable and easy to use is ever-present.
A major development would be the addition of global accounting standards specifically for sustainability factors. Investors and companies alike all adhere to the standards of the IFRS Foundation for their financial reporting, and so it’s with much interest that the same organisation is looking to create the International Sustainability Standards Board (ISSB).