With the announcement that the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) will merge into the Value Reporting Foundation, the Malaysian Alliance of Corporate Directors (MACD) has come out with its support for the merger.
Paul W Chan, president and co-founder of MACD said, “MACD welcomes this merger as a decisive first step in the global move towards comprehensive corporate reporting. MACD is looking forward to similarly bold announcements from those other global standards bodies which have communicated their commitment to such collaboration.”
The newly merged body is a direct response to calls from global investors and corporates to simplify the corporate reporting landscape, providing the market with a clear solution for communicating about the drivers of enterprise value.
The long-awaited harmonisation of environmental, social, and governance (ESG) reporting comes as companies come under increasing pressure to adapt their business practices to consider the public awareness of these issues.
The IIRC and the SASB, standard-setters in this field, will complete the merger by mid-2021. It will be led by Janine Guillot, currently CEO of SASB. IIRC CEO Charles Tilley will serve as Senior Advisor on the Value Reporting Foundation Board and chair the <IR> Framework committee.
Guillot said, “Sustainability disclosure is at the top of the agenda for many, creating incredible momentum towards simplifying the corporate reporting landscape. By merging two organizations focused on enterprise value creation, we hope to clarify the field. We stand ready to engage with the efforts of the IFRS Foundation, IOSCO, EFRAG, and others, working towards global alignment on a corporate reporting system.”
“This merger is an important step towards businesses and investors communicating with clarity and ease about the issues that matter most for financial performance,” added Robert K. Steel, SASB Foundation chair.