What is the Value Reporting Foundation to ESG? The Value Reporting Foundation (VRF) is a not-for-profit organization which provides education and resources on Environmental, Social, and Governance (ESG) topics for institutional investors. VRF’s goal is to help investors make better decisions with their money by providing information on how well companies are managing environmental and social risks. In this blog post, we’ll explore the value that VRF brings to the ESG community and why it’s important for both companies and investors. Stay tuned!
- What is the VRF integrated reporting framework?
- Why is VRF important?
- Why have the IIRC and SASB decided to merge now?
- How will the Value Reporting Foundation help with reporting?
- How can we now transfer over to the new system?
What is the VRF integrated reporting framework?
In order to understand it is important to understand it’s connections to SASB and the IIRC. To break it down VRF is a not-for-profit organization which provides education and resources on Environmental, Social, and Governance (ESG) topics for institutional investors. VRF’s goal is to help investors make better decisions with their money by providing information on how well companies are managing environmental and social risks.
The world’s leading investors are calling for simplicity in corporate reporting. With this merger, they take a step towards meeting those needs by providing an easier way to understand and analyze information about a company’s sustainability – all without sacrificing the insight that makes it so powerful!
What’s the difference between SASB and International Integrated Reporting Council (IIRC)?
The main differences were the focus and the audience. SASB focused on U.S. issuers, while IIRC was global in scope. IIRC’s membership was also broader, including auditors, regulators, and investors. VRF brings these two organizations together under one roof to provide a more cohesive approach to sustainability reporting and education globally.
Why is VRF important?
Now that we know a little bit more about VRF, it’s important to understand the value it brings to the ESG community. Here are just a few reasons:
1. VRF provides education and resources on ESG topics for institutional investors. This is valuable because it helps investors make better decisions with their money by providing information on how well companies are managing environmental and social risks.
2. VRF brings together two leading organizations in sustainability reporting – SASB and IIRC. This helps to provide a more cohesive approach to sustainability reporting and education globally.
3. VRF is supported by some of the world’s leading investors, including BlackRock, State Street, and Vanguard. This gives it a lot of credibility and ensures that its resources are valuable and relevant.
4. VRF is global in scope and has a broad reach across industries. This makes it a valuable resource for companies who want to understand how they compare to their peers globally and learn best practices from around the world.
5. VRF is the only organization of its kind that provides education and resources on both environmental and social topics. This makes it a valuable resource for companies and investors who want to understand how these two areas intersect and how they can impact a company’s bottom line.
Why have the IIRC and SASB decided to merge now?
One of the reasons for the merger is that SASB has been focused on U.S. GAAP standards, which IIRC does not operate under. The other reason is the exponentially fast growth of sustainability reporting and assurance. Two different systems with the same goal, yet neither globally adopted. VRF is well-positioned to take on this role because it brings together two leading organizations in sustainability reporting, has the support of some of the world’s leading investors, and is global in scope. This will eventually lead to one substandard worldwide which will benefit all stakeholders.
How do the IR Framework and SASB Standards fit together?
SASB Standards provide an overview of environmental and social topics that may be material to a company’s business. The IR Framework provides guidance on how to report this information in a way that is clear and concise for investors. Together, these two resources provide companies with the information they need to understand which topics are important to investors and how best to report on them. This merger is a step forward for sustainability reporting.
How does the Value Reporting Foundation work with the Global Reporting Initiative (GRI)?
Good question. As we know, the GRI is the most commonly used framework for sustainability reporting. VRF is in collaboration with the GRI to create a new standard which will combine the best of both frameworks. This will provide companies with a single resource that covers all aspects of sustainability reporting and will help to make it easier for them to comply with global standards.
How will the Value Reporting Foundation help with reporting?
As a company, you can use VRF to:
1. Understand how environmental and social topics are material to your business and which ones investors are interested in
2. Learn best practices from around the world for reporting on environmental and social topics
3. Get clarity on what is required to report under global standards
4. Connect with other companies who are also reporting on sustainability
5. Get assurance that your reports meet global standards
As an investor, you can use VRF to:
1. Understand how environmental and social topics are material to companies in your portfolio and which ones investors are interested in
2. Learn best practices from around the world for integrating environmental and social considerations into investment decision making
3. Get clarity on what information is disclosed by companies in their sustainability reports
4. Access assurance that reports meet global standards
5. Connect with other investors who are interested in sustainability reporting
How can we now transfer over to the new system?
The Value Reporting Foundation has come up with a transition plan which will help companies and investors make the switch to the new system. This includes a number of resources such as:
1. A guide to understanding how the VRF Framework works and how it differs from SASB Standards
2. A self-assessment tool to help companies identify which topics are material to them
3. Case studies on how companies have reported on environmental and social topics using the VRF Framework
4. A resource hub with tools and templates for sustainability reporting
5. Training and education programs on sustainability reporting for both preparers and investors
6. Ongoing support from VRF staff to help companies and investors with their reporting
The Value Reporting Foundation is committed to making the transition to the new system as smooth as possible for everyone involved.
In conclusion the comprehensive corporate reporting system
In conclusion, the Value Reporting Foundation is a global organization that is leading the way in sustainability reporting. Their goal is to create a single standard for sustainability reporting that will be used worldwide. This will benefit all stakeholders, including companies, investors, and the environment. The VRF has created a number of resources to help companies and investors make the switch to the new system, and they are committed to providing ongoing support. So far, the VRF has been successful in their mission and we believe they will continue to be a driving force in sustainability reporting. Thank you for reading!
Research & Curation
Dean Emerick is a curator on sustainability issues with ESG The Report, an online resource for SME’s and Investment professionals focusing on ESG principles. Their primary goal is to help middle market companies automate Impact Reporting with ESG Software. Leveraging the power of AI, machine learning and AWS to transition to a sustainable business model. Serving clients in the United States, Canada, Uk, Europe and the global community. If you want to get started, don’t forget to Get the Checklist! ✅