- ESG reporting, the EFRAG model, and the overall quality of the VRC Value Model
Companies and sustainability teams need a new model for measuring and managing stakeholder impacts, as claims of corporate greenwashing and value washing increase daily. The Value Research Center (VRC) at Doshisha University in Kyoto, Japan has announced the publication of its 2022 August White Paper, focusing on the European Financial Reporting Advisory Group (EFRAG’s) latest disclosure drafts for sustainability reporting, and how this model aligns with and deepens the overall quality of the VRC Value Model.
According to Professor Philip Sugai, Director of the Value Research Center, “After integrating EFRAG’s 114 draft disclosure requirements into the VRC Value Model, we were impressed with the scope of EFRAG’s coverage of many of the Value Model’s stakeholders, themes and goals. Especially with their push for companies to document their impacts using ‘double materiality’, we see a shift towards greater understanding of business decisions on individual stakeholder groups.”
SAP Japan International Ambassador Paul Beddie said, “The VRC In Kyoto has been working to organize the world’s top ESG and Sustainability Reporting frameworks into a goal-based, value creation model that will help companies to create value across their key stakeholders. Companies around the world are in desperate need of a way to consolidate the alphabet soup of standards to reduce their workload on ESG reporting and focus more on the critical ESG outcomes they transformed their businesses to achieve.
“The VRC’s Value Model is a very effective tool for doing just that. The additional integration of the draft reporting standards from EFRAG should also help companies doing business in the EU to align their disclosures with the EU Taxonomy.”
With the publication of the August White Paper, the VRC will begin to collaborate with several of the world’s leading companies in adopting the VRC Value Model, applying it to their own ESG and sustainability reporting requirements, and creating forward-looking sustainability strategies rather than backwards-focused disclosures.
Professor Sugai will be hosting a session at the UNGA77 Science Summit, where he will discuss the VRC Value Model and its broader practical applications, together with a panel of experts from academia, government, and business.
The UNGA77 Science Summit session, “Valuing Value: How any Organization Can Measure Stakeholder Value and “Ethical Capitalism” (https://ssunga77.sched.com/event/1AWkD), will be held on Sept 26 from 9:00 to 11:30 AM EST. Registration for the complete UNGA77 Science Summit is free and available at https://ssunga77.sched.com/tickets.
The “2022 August White Paper: The Value Model & EFRAG” is available for download at the Value Research Center website: www.valueresearchcenter.com/publications.
About the Value Research Center
The Value Research Center (VRC) at Doshisha University in Kyoto, Japan was established in November 2021. Its mission: to develop a practical system for organizations to measure, monitor, assess and report on the impacts that they have on various stakeholder groups.
The VRC continues to enhance its Value Model, integrating new frameworks as they’re introduced, bringing greater transparency, objectivity and measurability to value creation – in ways we didn’t see. The VRC Value Model gives government and industry eyes to see the impacts they’re actually having, to fix what’s broken, and enhance what they’re doing well. For more information, visit www.valueresearchcenter.com.