The SASB and IIRC: A merger or an acquisition? DR JOHN DUMAY, PROFESSOR OF ACCOUNTING & FINANCE 16TH EIASM INTERDISCIPLINARY CONFERENCE ON INTANGIBLES AND INTELLECTUAL CAPITAL - SUSTAINABILITY AND INTEGRATED REPORTING, GOVERNANCE AND VALUE CREATION 23 Sep. 2021
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The SASB and IIRC: A merger or an acquisition?DR JOHN DUMAY, PROFESSOR OF ACCOUNTING & FINANCE
16TH EIASM INTERDISCIPLINARY CONFERENCE ON INTANGIBLES AND INTELLECTUAL CAPITAL - SUSTAINABILITY AND INTEGRATED REPORTING, GOVERNANCE AND VALUE CREATION 23 Sep. 2021
Competition for the IIRCKey markets Competing Frameworks <IR> Take Up
Australia Operating & Financial ReviewCorporate Governance Guidelines
Low and growing?
United Kingdom Strategic Report Low and growing
Europe EU Directive Low and growing
Japan Corporate Governance Guidelines Medium and stabilising
India Global Reporting Initiative Low and growing
South Africa Global Reporting Initiative Medium and declining
United States 10-K ReportSarbanes Oxley Act 2002SASB
Low and stable?
China Global Reporting Initiative Almost non-existent
Internationally Global Reporting InitiativeUN Sustainable Development GoalsIFRS Management CommentaryTCFDUN Global CompactIFRS Sustainability Standards
Low and growing
If the IIRC were a company would I invest?
My recommendation in September 10 2020 = 3.5
Declining support for the IIRC: Income
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Network Contributions Grants and other contributions Other Income / Training & Events
Integrated Reporting Foundation
International Integrated Reporting Council
International Integrated Reporting Foundation
The Fortune TrustAngela Samuel
(Mrs Angela Druckman 2017)Coutts & Co
Nat Simons & Laura Baxter-SimonsMichael Bloomberg
£200k (2017)£200k (2018)
The Better Alignment Project £776k (2018)£323k (2019)
IIRC Level I IIRC Level II SASB Mentions SASB Used
The IIRC lost the quest for <IR> to be the “corporate reporting norm” and is being usurped by the SASB Standards
Competing philosophies
• Integrated reporting – Shareholder capitalism• To provide information to the “providers of capital” and to promote “financial
stability and sustainability”.
• Versus
• Sustainability Accounting Standards Board – Stakeholder Capitalism• Insight into the subset of sustainability issues that are most closely tied to an
organization’s ability to create long-term value for investors.
Value Reporting Foundation: Council Members’ Nationality 2021
16
1
17
1
4
51
7
8
0
5
10
15
20
25
30
35
SASB IIRC Total
US UK Non-US
The Bloomberg Influence
Conclusion
• SASB is the more powerful participant in the joining of the two entities – thus and acquisition, not a merger
• Stakeholder capitalism as espoused by Michael Bloomberg and US (western) corporations is becoming the dominant driver of sustainability
• The IIRC has been captured by stakeholder capitalism• A single framework to emerge? – Watch this space!