The new “Value Reporting Foundation” (why the SASB merged with the IIRC)
– The SASB and IIRC have complementary philosophies, products and work flow.
– They have a complementary geographic scope.
Here is a note co-authored by Janine Guillot and Charles Tilley, the heads of the SASB and IIRC, that discuss the merger of their two organizations that closed in mid-June. And in this Refinitiv podcast, Katie Schmitz Eulitt, SASB’s Director of Investor Outreach walks us through the key pillars of the SASB – IIRC merger. Here are a few notes:
– The merger will simplify things. For starters, there will be one set of standards instead of two. And then the SASB and IIRC actually have complementary philosophies, complementary products and work flow and a complementary geographic scope.
– Understanding your audience is the first step to understanding which tools to use.
– The biggest challenge is a poor quality of data, due primarily to a lack of comparability and consistently. The majority of the data collected is binary in nature (ie. “yes/no” answers) – and investors want more than that. They want something quantitative and not just narrative.
They’re accustomed to accounting standards that were built over decades – and they want an ESG set of standards at that quality without the benefit of that period of time to do it properly.
– The biggest opportunity is giving investors what they want – and helping investors understand what frustrations companies have. It’s an exciting time because people seem to be taking ESG more seriously, particularly in Europe.