An Attempt to Simplify and Advance Sustainability Reporting: The Value Reporting Foundation

The Value Reporting Foundation is a recently founded group, conceived as a result of the merger between the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) on June 9, 2021. With employees spread across four continents, the purpose of the VRF to support and develop an advanced corporate reporting system, which it plans to do so through its partnership with the International Financial Reporting Standards (IFRS) and other worldwide framework providers. With the announcement of a merger having originally been provided on November 26, 2020, the creation of the VRF is one that has already been received with support, especially with the current state of measuring sustainability performance being a source of confusion for users. This is especially a problem when attempting to report about any information of a non-financial nature, and one that is only exacerbated further by contemporary issues affecting the world, such as the ongoing pandemic, climate change, and rising levels of inequality worldwide.

A table illustrating how frameworks and standards are used to aid producers and users of information.

(Source: SASB: The Sustainability Recording Ecosystem: SASB Standards & Other ESG Frameworks – SASB)
The further purpose of the foundation is not only to simplify the landscape of corporate reporting in order to alleviate the aforementioned difficulties of providing accurate non-financial information, but also to provide support for business/investor decision making, alongside promoting increasingly consistent global standards for ESG investing, enabling investors to make more informed decisions, being fully aware of any issues that may be present, thanks to the quality of support that the Value Reporting Foundation desires to maintain. The VRF, in this respect, also states that it provides resources for such investors and businesses to develop a shared and equal understanding of enterprise value, and how it can constantly change, improve, or even decay throughout the years.
The table below illustrates the structure of the VRF, including a board of directors and two independent boards – the latter of which is responsible for governing the content of both the SASB Standards, and the Integrated Reporting Framework.

(Source: Value Reporting Foundation Structure: Governance Overview – The Value Reporting Foundation.)

As a result of the ambitious aims of the Value Reporting Foundation, especially in an area where confusion over both financial and non-financial matters can prevail, its creation has been recognised and praised by corporate leaders worldwide, such as in Brazil, Japan, Germany, the United Kingdom and the United States. The merger has also seen support from within the financial world.

Notwithstanding the merger between the SASB and the IIRC, the VRF states that SASB standards will continue to be set according to the SASB Standards Board, while both it and the International IR Framework will remain complimentary tools that will also see support and use. In its aim to fully support and provide aid for investors and businesses, the VRF aims to not only provide guidance for existing standards but will also recommend and expect organisations to apply standards and frameworks that are ultimately best suited for them, to promote and maintain a system which will allow a high standard of reporting to be upheld. As a result, stakeholders will thus be able to receive more detailed and easier to understand reports which will prove to be more beneficial to them.

Casting a light on European standards, the Value Reporting Foundation also believes that the work of the European Commission and the European Financial Reporting Advisory Group (EFRAG) has the potential to make Europe a global leader in reporting on corporate matters, which, as a result, could improve the international quality of reporting worldwide. As a result, the VRF itself not only supports worldwide markets, but has also signed a memorandum of cooperation with EFRAG in order to allow the European continent to advance further in promoting existing frameworks both continentally, and ultimately worldwide.

More information on the VRF, its policies and services can be found on its website at https://www.valuereportingfoundation.org/.

Disclaimer: Opinions expressed within the content are solely the author’s and do not reflect the official opinions and beliefs of the companies that he represents.

Written by Batuhan Ökten

Sources:

Globe Newswire (June 9, 2021): IIRC and SASB form the Value Reporting Foundation, providing comprehensive suite of tools to assess, manage and communicate value. https://www.sasb.org/blog/answering-your-questions-about-the-value-reporting-foundation/
Lim, R (June 10, 2021): SASB and IIRC merge to form Value Reporting Foundation. The Business Times: https://www.businesstimes.com.sg/companies-markets/sasb-and-iirc-merge-to-form-value-reporting-foundation
Medress, A (December 21, 2020): Answering Your Questions about the Value Reporting Foundation. SASB: https://www.sasb.org/blog/answering-your-questions-about-the-value-reporting-foundation/

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Historical data	Your educational history and credentials, employment history, criminal background history, social media, skills and qualifications, and results from any other background and disclosure checks in countries where it is lawful to carry out such checks.
Employment-related data	Your current remuneration, pension and benefits, what role you are looking for, what work-related areas interest you, third party references (if taken) and interview and assessment feedback created either by us or our client following an interview or assessment.
Verification data	A copy of your driving licence, passport, identity card or another form of identification and referee details.
Financial data	Your bank sort code and account number, tax-related information and credit checks.
Diversity data	We may collect diversity data for governmental reporting purposes, which may include racial or ethnic origin, religious or other similar beliefs and physical or mental health, including disability-related information.
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Profile data	Your usernames applicable to accessing our services, interests in so far as these are applicable to the services we provide to you and other preferences and other insights or determinants that we have gained from our analysis and profiling of you.
Usage data	How you use, interact and navigate around our websites and what you browse within them.
Marketing data	Your preferences in receiving marketing from our third parties and us and your communication preferences.
Visa application data	Your immigration history (including residency, immigration status and travel history), character disclosures (including offences, disclosures and information relevant to meeting character requirements), health disclosures and information relevant to meeting health criteria.
Video	If video surveillance operates in or near our premises, we may capture images of you where permitted by law. We may also capture video of you if you attend an event organised by us where you have given your express consent for us to do so.

Legal Ground	Permitted Purpose
Consent - where you have given us consent to use your personal data for one or more permitted purposes.	For example: · when you create a website account with us; · when we are required by law to collect your explicit consent to process your personal data; and · where you otherwise provide us with your consent.
Legal obligation - where we need to process your personal data to comply with a legal or regulatory obligation.	For example: · to perform background checks in accordance with our legal obligations; · to comply with our legal and regulatory requirements in relation to social security, taxation and financial compliance; · for equal opportunities monitoring and reporting purposes; · to co-operate with our regulators and other public authorities; and · to comply with any other obligation to which we are subject under applicable rules and law, including record keeping and data retention.
Contractual necessity - where we need to process your personal data to perform and fulfil our obligations to you under the contract, we are able to enter or have entered into with you.	For example: · to employ/engage you if you are applying for a vacancy with us; and · to enter into or perform our agreement with you if you are a supplier or external adviser.
Legitimate interests - where the processing of your personal data is necessary for the pursuit of our legitimate business interests and provided your interests and fundamental rights do not override our legitimate interests.	For example: · to offer and provide our recruitment services to you and to assess your skills against our vacancies with our clients; · to provide you with marketing material to aid your job search; · to manage complaints and legal claims; · to conduct appropriate background checks if you are to be employed/engaged by us; · sharing your personal data with the companies that operated within the KOMBA brand; · sharing your personal data with our third party services providers; and · sharing your personal data with potential employers and our clients (including our MSP clients) who can offer job opportunities within their organisations.

Right	Description of Right
Right to be informed	This is the right to be provided with clear, transparent and easy to understand information about what personal data we collect about you, how we use and protect such data, including the third parties to whom we disclose it to, and your rights. This is why we’re providing you with the information in this Policy.
Right of access	You may be able to request a copy of your personal data and to obtain certain other information about how we handle and process it.
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Rights in relation to automated decision making	You may be able to request not to be subject to a decision based solely on automated processing where it has a legal effect on you or otherwise significantly affects you.
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Type of Personal Data	Description of Personal Data
Identity data	Your title, first name, last name, maiden name, date of birth, gender, photograph, national insurance number (or equivalent in your country), nationality and other information relating to residency and citizenship which may be required to establish a right to work in a given country, marital status and number of dependents.
Contact data	Your physical and email address and telephone numbers, emergency contact details.
Historical data	Your educational history and credentials, employment history, criminal background history, social media, skills and qualifications, and results from any other background and disclosure checks in countries where it is lawful to carry out such checks.
Employment-related data	Your current remuneration, pension and benefits, what role you are looking for, what work-related areas interest you, third party references (if taken) and interview and assessment feedback created either by us or our client following an interview or assessment.
Verification data	A copy of your driving licence, passport, identity card or another form of identification and referee details.
Financial data	Your bank sort code and account number, tax-related information and credit checks.
Diversity data	We may collect diversity data for governmental reporting purposes, which may include racial or ethnic origin, religious or other similar beliefs and physical or mental health, including disability-related information.
Technical data	Your internet protocol (IP) address, MAC address, your login data, browser type and version, time zone setting and location, browser plug-in types and versions, operating system and platform, and location data.
Profile data	Your usernames applicable to accessing our services, interests in so far as these are applicable to the services we provide to you and other preferences and other insights or determinants that we have gained from our analysis and profiling of you.
Usage data	How you use, interact and navigate around our websites and what you browse within them.
Marketing data	Your preferences in receiving marketing from our third parties and us and your communication preferences.
Visa application data	Your immigration history (including residency, immigration status and travel history), character disclosures (including offences, disclosures and information relevant to meeting character requirements), health disclosures and information relevant to meeting health criteria.
Video	If video surveillance operates in or near our premises, we may capture images of you where permitted by law. We may also capture video of you if you attend an event organised by us where you have given your express consent for us to do so.

Legal Ground	Permitted Purpose
Consent - where you have given us consent to use your personal data for one or more permitted purposes.	For example: · when you create a website account with us; · when we are required by law to collect your explicit consent to process your personal data; and · where you otherwise provide us with your consent.
Legal obligation - where we need to process your personal data to comply with a legal or regulatory obligation.	For example: · to perform background checks in accordance with our legal obligations; · to comply with our legal and regulatory requirements in relation to social security, taxation and financial compliance; · for equal opportunities monitoring and reporting purposes; · to co-operate with our regulators and other public authorities; and · to comply with any other obligation to which we are subject under applicable rules and law, including record keeping and data retention.
Contractual necessity - where we need to process your personal data to perform and fulfil our obligations to you under the contract, we are able to enter or have entered into with you.	For example: · to employ/engage you if you are applying for a vacancy with us; and · to enter into or perform our agreement with you if you are a supplier or external adviser.
Legitimate interests - where the processing of your personal data is necessary for the pursuit of our legitimate business interests and provided your interests and fundamental rights do not override our legitimate interests.	For example: · to offer and provide our recruitment services to you and to assess your skills against our vacancies with our clients; · to provide you with marketing material to aid your job search; · to manage complaints and legal claims; · to conduct appropriate background checks if you are to be employed/engaged by us; · sharing your personal data with the companies that operated within the KOMBA brand; · sharing your personal data with our third party services providers; and · sharing your personal data with potential employers and our clients (including our MSP clients) who can offer job opportunities within their organisations.