The IFRS Foundation has completed its consolidation with the Value Reporting Foundation, streamlining the global sustainability disclosure landscape and laying the groundwork for a unified international baseline.
In a landmark move that reshapes corporate sustainability reporting, the IFRS Foundation finalized its consolidation with the Value Reporting Foundation (VRF), the body behind the SASB Standards and the Integrated Reporting Framework. The merger, originally pledged at COP26, marks a critical step in harmonizing ESG reporting for capital markets worldwide.
For years, companies, investors, and regulators have wrestled with a patchwork of sustainability disclosure frameworks. This unification under the IFRS Foundation—home of the newly formed International Sustainability Standards Board (ISSB)—signals a global pivot toward consistency, comparability, and financial relevance in ESG reporting.
With the SASB Standards now governed by the ISSB, their industry-specific, investor-focused model becomes the backbone of emerging global norms. Simultaneously, the Integrated Reporting Framework—linking financial and sustainability performance—is now jointly stewarded by the ISSB and the International Accounting Standards Board (IASB).
“This consolidation follows the successful consolidation of the Climate Disclosure Standards Board in February,” said Erkki Liikanen, Chair of the IFRS Foundation Trustees. “These consolidations help us respond to the demand from stakeholders and deliver on the commitment we made at COP26 – to harmonize the sustainability disclosure landscape and build on the work of existing reporting initiatives.”
As climate and sustainability disclosures become increasingly linked to capital market performance and regulation, the ISSB is expected to accelerate its standard-setting work. Its mission: to deliver a global baseline of sustainability disclosures—grounded in financial materiality and designed to be interoperable with jurisdiction-specific requirements such as the EU’s CSRD or the SEC’s proposed climate disclosure rules.
The consolidation doesn’t just bring frameworks together—it aligns communities, education programs, and advisory networks:
“We look to a future under the IFRS Foundation where these tools can help deliver a global baseline for sustainability disclosure,” said Richard Sexton and Robert K. Steel, Co-Chairs of the VRF Board. “We count on the ongoing support of our stakeholders globally to enable us to reach this goal.”
The timing of this consolidation is pivotal. From asset managers needing clearer ESG signals to corporations preparing for stricter regulatory scrutiny, demand for coherent, decision-useful disclosure standards is mounting. As national and regional mandates proliferate, the ISSB’s work could act as a stabilizing force—offering a reference point for alignment.
Critically, this consolidation may also encourage further harmonization with voluntary frameworks and emerging standards, including the Task Force on Nature-related Financial Disclosures (TNFD) and the Greenhouse Gas Protocol.
By uniting the expertise of the VRF with the global governance of the IFRS Foundation, this consolidation establishes a stronger foundation for ESG transparency and investor confidence. As the ISSB moves from framework design to implementation, the market can expect faster alignment, enhanced comparability, and greater accountability across sectors.
