The VRF consolidation follows the commitment made at the 2021 United Nations Climate Change Conference (COP26) to consolidate staff and resources of leading global sustainability disclosure initiatives to support the work of the International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of sustainability disclosures for the capital markets.
The consolidation will inform the work of the IFRS Foundation through the industry-based approach of the Sustainability Accounting Standards Board (SASB) standards and the Integrated Reporting Framework. The VRF’s SASB standards serve as a key starting point for the development of the IFRS Sustainability Disclosure Standards, while the Integrated Reporting Framework provides connectivity between financial statements and sustainability-related financial disclosures.
The ISSB, which now governs the SASB standards, is embedding the industry-based approach of the SASB standards into its standard-setting process, as well as addressing the international applicability of the SASB standards as a priority. The ISSB encourages companies and investors to continue to provide full support for, and use of, the SASB standards (see “The SASB and Sustainability Standards” on p. 48).
“I am delighted that the IFRS Foundation has finalized consolidation with the VRF,” said Erkki Liikanen, chair of the IFRS Foundation Trustees. “This consolidation follows the successful consolidation of the Climate Disclosure Standards Board in February. These consolidations help us to respond to the demand from stakeholders and deliver on the commitment we made at COP26—to harmonize the sustainability disclosure landscape and build on the work of existing reporting initiatives.”