The International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) have consolidated their businesses to form the Value Reporting Foundation, a merger that investors expect will result in more consistent global standards for environmental, social, and governance (ESG) investing.
The new firm says it will develop a more thorough corporate reporting system in partnership with the International Financial Reporting Standards (IFRS) Foundation, as well as other global standard setters. The Value Reporting Foundation, which has employees across four continents, will also continue to provide a combination of tools for investors.
“By combining the tools, resources, and relationships of SASB and IIRC, the Value Reporting Foundation will continue to advance progress toward a more coherent landscape and continue to support the important efforts of the IFRS Foundation,” said Janine Guillot, chief executive of the Value Reporting Foundation, and previously the SASB CEO. “The end result will be comparable, consistent, and reliable information that enables more holistic decisionmaking by businesses and investors.”
The merger was praised by corporate leaders across Australia, Brazil, Canada, France, Germany, India, Indonesia, Italy, Japan, South Korea, the UK and the US.
The merger was also praised in the financial world. Michael Bloomberg, chair emeritus at the Value Reporting Foundation, called it “another important step forward toward a stronger, more resilient economy—and a brighter, safer future.”
The Value Reporting Foundation was first announced in November, as more investors named more cohesive standards for sustainability investing as a top priority. The trend has accelerated this year with a federal administration in the US that is more amenable to renewable infrastructure and other sustainable investments.
Before the merger, SASB researched standards on such topics as diversity considerations and concerns related to human capital at corporations. Standards for content governance on social media platforms were also being researched.