FOR IMMEDIATE RELEASE:
31 March 2014 – The International Integrated Reporting Council (IIRC) and the Global Initiative for Sustainability Ratings (GISR) have signed a Memorandum of Understanding, signalling collaboration between the organizations in promoting and supporting the global alignment of corporate reporting and ratings frameworks.
This MoU signifies the ongoing efforts of organizations 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 organizations, 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 organizations. 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.
About the IIRC
The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs. Together, this coalition shares the view that communication about businesses’ value creation should be the next step in the evolution of corporate reporting. A link to the International Integrated Reporting Framework can be found here. Follow us on YouTube, Twitter and LinkedIn.
Global Initiative for Sustainability Ratings (GISR) is a joint project of Ceres and Tellus Institute. Its mission is to design and steward a global sustainability (ESG) ratings standard of excellence to expand and accelerate the contribution of business and other organizations worldwide to sustainable development. GISR will accredit ratings, rankings and indices against its standard, as well as serve as a center for excellence for strengthening the field worldwide.
Pippa Whittaker, IIRC, [email protected]org, +44 207 504 2570
Mark Tulay, GISR, [email protected]org, +1 202 536 4421