On Wednesday, June 9, the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) officially announced their merger to form the Value Reporting Foundation.
The Value Reporting Foundation is a global organization committed to creating a more streamlined corporate reporting system by working closely with leading framework providers and standard-setters around the world. The Foundation will provide investors and businesses with three key tools to help inform decision making and create a shared understanding of business value: Integrated Thinking Principles, Integrated Reporting Framework, and SASB Standards.
A direct response to calls from investors and corporations to simplify the corporate reporting landscape, the merger signifies momentum towards a more unified, cohesive system for ESG reporting. The merger also directly furthers the goals of CDP, CDSB, GRI, IIRC, and SASB outlined in the Statement of Intent To Work Together Towards Comprehensive Corporate Reporting, which details their shared commitment to working towards a unified corporate reporting system. The Value Reporting Foundation could eventually grow to include other organizations focused on enterprise value creation.
The resources provided by the Foundation, including Integrated Thinking Principles, the Integrated Reporting Framework, and SASB Standards can be used alone or in combination, depending on business needs. This means that for now, the IIRC Framework and the SASB Standards will remain complementary reporting tools. However, the Value Reporting Foundation will facilitate the use of both frameworks together for companies who wish to do so.
This announcement represents a leap in the direction towards a more simplified and comprehensive corporate reporting system. The Values Reporting Foundation will bring increased clarity, structure, and ease of communication to those seeking market-informed, transparent, and evidence-based data in order to better inform decision-making, create value for shareholders and stakeholders, and continue to align business strategies with the best interests of people and planet.
Looking ahead, we will hopefully see a more unified (and less acronym-heavy) reporting landscape. In the meantime, we’re happy to be here to help navigate the complexity and be a part of your company’s ESG journey.