IIRC, SASB Complete Merger to Form Value Reporting Foundation

The International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) have consolidated their businesses to form the Value Reporting Foundation, a merger that investors expect will result in more consistent global standards for environmental, social, and governance (ESG) investing.

The new firm says it will develop a more thorough corporate reporting system in partnership with the International Financial Reporting Standards (IFRS) Foundation, as well as other global standard setters. The Value Reporting Foundation, which has employees across four continents, will also continue to provide a combination of tools for investors.

“By combining the tools, resources, and relationships of SASB and IIRC, the Value Reporting Foundation will continue to advance progress toward a more coherent landscape and continue to support the important efforts of the IFRS Foundation,” said Janine Guillot, chief executive of the Value Reporting Foundation, and previously the SASB CEO. “The end result will be comparable, consistent, and reliable information that enables more holistic decisionmaking by businesses and investors.”

The merger was praised by corporate leaders across Australia, Brazil, Canada, France, Germany, India, Indonesia, Italy, Japan, South Korea, the UK and the US.

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The merger was also praised in the financial world. Michael Bloomberg, chair emeritus at the Value Reporting Foundation, called it “another important step forward toward a stronger, more resilient economy—and a brighter, safer future.”

The Value Reporting Foundation was first announced in November, as more investors named more cohesive standards for sustainability investing as a top priority. The trend has accelerated this year with a federal administration in the US that is more amenable to renewable infrastructure and other sustainable investments.

Before the merger, SASB researched standards on such topics as diversity considerations and concerns related to human capital at corporations. Standards for content governance on social media platforms were also being researched.

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Tags: corporate governance, environmental social and governance investing, ESG, Governance, Investment, Investment Fund, Investment Strategy, portfolio, Socially Responsible Investing

Fiona Reynolds has announced she is stepping down as CEO of the United Nations Principles for Responsible Investment (PRI). She said she intends to return to her native Australia after living in the UK for nearly nine years.

The PRI is a United Nations-supported international network of investors working to implement six investment principles that incorporate environmental, social, and governance (ESG) issues into investment analysis and decisionmaking. Reynolds leaves PRI after more than eight years, helping it grow from a staff of just 37 with a little more than 1,000 signatories in 2013, to a staff of 170 and nearly 4,000 signatories, representing in aggregate more than half the world’s institutional assets.

“Over this time, I’ve not only had the privilege of witnessing the growth of the organization, but the evolution of responsible investment itself, as it has shifted from a niche activity into the mainstream of the global financial industry,” Reynolds wrote in a blog post on the PRI’s website. “And so today, with the PRI’s new three-year strategy in place and the organization in a strong position to carry its mission forward, I’m writing to let you know that I have made the decision to step down as CEO.”

Reynolds, who wrote that her resignation “has not been an easy decision,” said she decided to step down from her London-based position to move back to her native Australia to be closer to her family.

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“Spending nearly a decade in London, so far away from my home in Australia, has been deeply challenging on a personal level,” Reynolds said. “If it was viable to maintain my role as CEO from Australia I would, but this is not practical or indeed possible. And so, the time has come to pass on the baton to the next passionate leader in responsible investment.”

She also said that she will make an orderly transition to a new CEO her top priority, and will stay in her position until the end of the year, adding that she will work closely with the board “to ensure a seamless handover to the new CEO.”

The PRI board, led by Chairman Martin Skancke, will be responsible for appointing Reynold’s successor and has already begun coordinating a subcommittee to launch a search. Reynolds said the board will begin interviewing and appointing a recruitment firm soon.

“In Fiona’s tenure as CEO of the PRI, she has led the growth in scope and reach of the organization to investors, policymakers, and other stakeholders around the world,” Skancke said in a statement. “We are very sorry to see Fiona step down as CEO, but fully understand her personal wish to be home in Australia with family.”