The International Accounting Standards Board (IASB) and the new International Sustainability Standards Board (ISSB) will work together to agree on how to build the Integrated Reporting Framework into their standard-setting projects and requirements.
The chairs of both bodies, the IASB’s Andreas Barckow and the ISSB’s Emmanuel Faber, said in a news release that the Integrated Reporting Framework “drives high-quality corporate reporting and connectivity between financial statements and sustainability-related financial disclosures, which improves the quality of information provided to investors”.
The work by the IASB and the ISSB could include enhancements of the Integrated Reporting Framework. The announcement also noted a long-term commitment for a corporate reporting framework that incorporates principles and concepts of the current Integrated Reporting Framework.
That framework is underpinned by the Value Reporting Foundation’s Integrated Thinking Principles.
The ISSB was formed in 2021 to focus on developing globally accepted sustainability standards, which include a focus on environmental, social, and governance (ESG) topics. The Value Reporting Foundation was created by the merger of the International Integrated Reporting Council and Sustainability Accounting Standards Board. Those consolidations have helped continue the process of convergence of several reporting frameworks.
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