The International Foundation for Valuing Impacts (IFVI) has joined forces with the Value Balancing Alliance (VBA) to develop an impact accounting methodology that merges the best of financial accounting with vital sustainability indicators.
The aims is to seamlessly integrate existing frameworks such as the IFRS Sustainability Disclosure Standards that were launched earlier in June, as well as the European Sustainability Reporting Standards (ESRS), and an anticipated climate disclosure directive from the US Securities and Exchange Commission (SEC)..
IFVI and VBA recently publicised a conceptual framework that focuses on the pivotal terms and concepts, inviting industry feedback until 16th October.
The subjects include climate change, equitable wages, and notable consumer impacts, especially in the healthcare domain.
“Our overarching aim is to craft an open-source methodology accessible to everyone, harmonizing seamlessly with existing reporting norms, ” said Daniel Osusky, IFVI’s chief research officer.
He added, their current collaboration with VBA seeks to take the vision forward, amalgamating existing methodologies and moving beyond the prototype phase.
Osusky said he envisions a future where their methodologies become an intrinsic component of other major organizations, regulatory bodies, and standards.
He notes he is optimistic that companies and investment entities will employ their methodologies post-release, citing instances of early adopters like Sweden’s Summa Equity who have experimented with previous iterations of impact accounting frameworks.
He also acknowledged the significant influence of entities like IFRS, the Impact Management Platform, the Capitals Coalition, Social Value International, and the Impact Economy Foundation.
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