SASB and IIRC Merge to Create Consistent ESG Reporting
By April Hall

As shareholders, employees and other stakeholders bring ESG to the fore, directors and management have lamented that there are no consistent, measurable standards by which to measure corporate efforts and advancements.

The Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC) have worked separately on ESG reporting standards, creating the Integrated Thinking Principles, Integrated Reporting Framework and SASB Standards for a decade. Those guidelines were similar, but conflicting language kept the three different from one another.

On Wednesday, officials announced the merger of SASB and IRC to form the Value Reporting Foundation. The new organization will work to integrate the three resources using a common language.

“By more closely aligning the Integrated Reporting Framework and the SASB Standards,” says Value Reporting Foundation CEO Janine Guillot, “the Value Reporting Foundation will make it easier for businesses to communicate their long-term strategy and provide a more comprehensive view of business performance to investors and other providers of capital.”

Guillot was formerly the CEO of SASB. Charles Tilley, former CEO of IIRC, is co-chair of the foundation.

Guillot says that while accounting standards took decades to develop, the foundation expects an accelerated timeline that will have concrete results in one to three years.

Environmental sustainability and climate change were largely discussed during a press conference announcing the completion of the merger. However, Guillot says, all aspects of ESG are on parallel tracks for standards development.

She used human capital sustainability as an example, citing the areas of diversity and inclusion, job quality and intellectual capital as just a few areas under assessment.

“The ESG system is missing foundational standards,” Guillot says. “This will be the gravel under the road.”


Other related articles

  • Are SPAC Board Structures a ‘Conflict-Laden’ Invitation to Fiduciary Misconduct?
    Published June 16, 2021
    By Frank M. Placenti
    Without a doubt the trendiest transactions on Wall Street during 2020 and the first half of 2021 were the formation of special purpose acquisition corporations SPACs and the followon mergers known as ...
  • What Management Really Thinks About the Board and What to Do About It
    Published June 09, 2021
    By Paul Washington and Paul DeNicola
    For many companies 2020 was a transformative year and while that was positive for some boards and management teams some fault lines were also exposed A survey of more than 500 Csuite executives by PwC ...
  • Climate Governance at an ‘Inflection Point’ for Big Oil
    Published May 29, 2021
    By April Hall
    In the matter of 24 hours ExxonMobil lost at least two board seats UPDATE Engine No1 gained three seats to activist investors Chevron shareholders pushed for that company to reduce its emissions and a ...
  • What Directors Can Learn From IPOs
    Published May 27, 2021
    By Sanjai Bhagat and Srinivasan Rangan
    After a lull during the financial crisis that started in 2008 initial public offerings IPOs have made a resurgence While the pandemic slowed down most economic and financial activity 2020 was the best ...