The number of frameworks and standards in the environmental, social and governance (ESG) space can be overwhelming. While various organizations have set up different standards and frameworks, last year five of them — the Sustainability Accounting Standards Board (SASB), the International Integrated Reporting Council (IIRC), the Global Reporting Initiative (GRI), the Climate Disclosure Standards Board (CDSB), and the Carbon Disclosure Project (CDP) — announced plans to harmonize their standards and frameworks to provide more consistency. (See our blog post for additional information on this initiative).
In December 2020, this “group of five” published a prototype climate-related financial disclosure standard that illustrates how the concepts from their joint paper can be applied to climate disclosure and consolidates content and metrics into a single, practical guide. Notably, the publication of the prototype coincided with the fifth anniversary of the Paris Agreement.
SASB and IIRC
SASB and the IIRC also announced plans to combine under the oversight of a new organization to be called the Value Reporting Foundation. The official merger was formalized just this month. The merger of two entities focused on enterprise value creation represents meaningful progress toward simplifying ESG reporting.