In a move to align the sustainability reporting requirements for publicly traded companies, the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC) announced the signing of a Memorandum of Understanding that will guide the future development of both corporate sustainability disclosure frameworks.
The MOU states that the two organizations will work collaboratively regarding the “ongoing process of developing their respective frameworks, guidelines and standards” with regard to the disclosure of sustainability metrics and data required in mandatory filings by publicly owned companies.
Currently, SASB is developing accounting guidelines that identify a set of material issues that publicly traded companies in 80 industries across ten business sectors should report on. The guidelines are scheduled for release in 2015. The IIRC has developed the Integrated Reporting Framework, guidance for how publicly traded companies can most effectively integrate sustainability into their annual reports in such a way that the public can understand the value of sustainability initiatives and can effectively compare one company to the another.
The newly signed MOU will facilitate continued collaboration and development of standards between the two organizations.