New MoU drives momentum in corporate reporting
International Integrated Reporting Council and Global Initiative for Sustainability Ratings pledge to work together to enhance quality of corporate reporting and ratings
The International Integrated Reporting Council (IIRC) and the Global Initiative for Sustainability Ratings (GISR) have signed a Memorandum of Understanding, signalling collaboration between the organisations in promoting and supporting the global alignment of corporate reporting and ratings frameworks.
This MoU signifies the ongoing efforts of organisations in the corporate reporting sector to cooperate in driving greater coordination of reporting and ratings’ standards and frameworks globally. It recognises the shared view that a more cohesive reporting landscape enables businesses to evolve their reporting practices, making them more resilient, leading to greater stability in global markets.
Integrated Reporting (<IR>) is consistent with numerous developments in corporate reporting taking place across the world. The International <IR> Framework, which provides principles-based guidance for companies and other organisations, will provide impetus to greater innovation in corporate reporting globally.
<IR> applies reporting principles and concepts that are focused on bringing greater cohesion and efficiency to the reporting process, and adopting “integrated thinking” as a way of breaking down internal silos and accelerating value creation.
GISR is focused on driving increased transparency and effectiveness of sustainability ratings. It is working to mesh financial and sustainability information into a holistic approach to rating both credit and companies. In so doing, ratings will benefit directly from information flowing from integrated reports that use the International <IR> Framework.
The Memorandum of Understanding (MoU), signed by IIRC CEO Paul Druckman and GISR Founder, Allen White, outlines the basis for ongoing collaboration and alignment between the two organisations. Among other measures, IIRC and GISR agree to strive for complementarity and compatibility in the ongoing development of their respective frameworks and standards, and take proactive measures to work cooperatively to explore, articulate and advance the concept of “integrated ratings”.
IIRC CEO Paul Druckman commented, “I am delighted that we have signed this MoU with GISR. The promotion by GISR of more powerful external communication relating to an ability to create value over the short, medium and long term is very much aligned with Integrated Reporting, and the Global Initiative for Sustainability Ratings is doing important work in assuring that businesses give this the attention it deserves.”
GISR Co-Chair Allen White added, “GISR’s vision is to transform the definition of corporate value in the 21st century such that markets reward the preservation and enhancement of all forms of capital. Integrated Reporting is building a foundation for disclosures aligned with multiple capitals that will help company and credit ratings more accurately assess long-term performance. Together, <IR> and GISR will bring to financial markets a new generation of information and tools that will enhance decision-making among all market players for the benefit of investors, companies and society at-large.”
The full MoU can be found here.