SAN FRANCISCO, Jan. 15, 2014 /PRNewswire/ -- The Sustainability Accounting Standards Board™ (SASB)™ and the International Integrated Reporting Council (IIRC) today announce a Memorandum of Understanding (MoU) to more closely collaborate to advance the evolution of corporate disclosure and communicate value to investors.
<IR> applies principles and concepts that are focused on bringing greater cohesion and efficiency to the reporting process, and adopting "integrated thinking" as a way of breaking down internal silos and reducing duplication. It improves the quality of information available to providers of financial capital to enable a more efficient and productive allocation of capital. Its focus on value creation, and the 'capitals' used by the business to create value over time, contributes towards a more financially stable global economy and is a force for sustainability. Using SASB standards, which guide the disclosure of material sustainability issues in mandatory filings to the Securities and Exchange Commission, can help advance the principles of integrated reporting using the International <IR> Framework framework.
The memorandum of understanding (MoU), signed by SASB founder and executive director Dr. Jean Rogers and IIRC CEO Paul Druckman, outlines the basis for ongoing cooperation, collaboration and alignment between the two organizations. Among other measures, SASB and the IIRC agree to strive for complementarity and compatibility in the ongoing development of their respective frameworks, guidelines and standards, and take proactive measures to share the work of the other organization.
Commenting on the MoU, IIRC CEO, Paul Druckman stated, "We will work with SASB to identify ways and means by which the International <IR> Framework and SASB standards can be aligned to strengthen corporate reporting and disclosure."
"SASB's standards are a practical implementation of integrated reporting in the context of U.S. capital markets," says Dr. Rogers. "The missions of SASB and the IIRC are aligned, and formalizing our partnership will strengthen harmonization and guidance to companies regarding improved disclosure on material sustainability factors. Both organizations put investors at the heart of determining materiality."
Through 2015 SASB is developing sustainability accounting standards for more than 80 industries in ten sectors. In December 2013 the IIRC released the International Integrated Reporting Framework to provide principles-based guidance for companies wishing to prepare an integrated report, and to provide impetus to greater innovation in corporate reporting globally.
The Sustainability Accounting Standards Board™ (SASB)™ is an independent 501(c)3 organization that establishes and maintains industry-specific standards for use in disclosing material sustainability issues in annual filings to the Securities and Exchange Commission. More than 1,000 individuals from individuals representing $12.5T assets under management and $5.5T market capital have participated in multi-stakeholder industry working groups informing standards development for five sectors to date. For more information about SASB, visit www.sasb.org, or follow us on YouTube, Twitter or LinkedIn.
About the IIRC
The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs. Together, this coalition shares the view that communication about businesses' value creation should be the next step in the evolution of corporate reporting. A link to the International Integrated Reporting Framework can be found here. Follow us on YouTube, Twitter and LinkedIn.
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SOURCE Sustainability Accounting Standards Board (SASB)