IIRC and SASB merge to form Value Reporting Foundation
Corporates and investors are surrounded by several disclosure requirements, especially on non-financial information. The merger of the IIRC and SASB comes at a time when there are several diverse standards available.
Therefore, the creation of the Value Reporting Foundation comes at a time when businesses and investors are seeking simplicity in the corporate reporting landscape, said Janine Guillot, CEO of the SASB, who will be heading the newly minted organisation.
The merger will harmonise SASB and IIRC frameworks for businesses to communicate their long-term strategy and provide a more comprehensive view of business performance to investors and other capital providers.
Value Reporting Foundation will support business and investor decision-making with three key resources: Integrated Thinking Principles, Integrated Reporting Framework (<IR> Framework) and SASB standards.
The Integrated Thinking Principles provides an understanding of value creation over short, medium, and long-term, while the Integrated Reporting Framework supports effective reporting on strategy, governance, prospects, and business models. The SASB standards provide investors with consistent, comparable and reliable information on the ESG factors relevant to financial performance and enterprise value. “These tools will help businesses and investors develop a shared understanding of enterprise value and how it is created, preserved or eroded over time,” added Guillot.
A global organisation, the Value Reporting Foundation will also work closely with the International Financial Reporting Standards Foundation (IFRS Foundation) to deliver a more coherent corporate reporting system. Charles Tilly, CEO of the IIRC until the completion of the merger, will then become the board director and senior advisor to the Value Reporting Foundation. Two independent boards will oversee the content of the <IR> Framework and SASB Standards.