international integrated reporting council. ngos companies investors accounting standard setters...

International Integrated Reporting Council

NGOs

Companies

Investors

Accounting

Standardsetters

Regulators

Chair: Prof Mervyn KingCEO: Paul Druckman

Who is the IIRC?

Business Network

Investor Network

IIRC Pilot Programme

Our long-term vision is a world in which integrated thinking is embedded within mainstream business practice in the public and

private sectors, facilitated by <IR> as the corporate reporting norm.

The cycle of integrated thinking and reporting, resulting in efficient and productive capital allocation, will act as forces for financial

stability and sustainability.

Long Term Vision

Why <IR>?

Outline

• The macro perspective:

• Financial stability• Sustainability

• In practical terms:

• Concise communication of value – more than financial capital

• Focus on strategy and future orientation

• Reduce volume

• Promote connectivity of information

Why <IR>

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400 Prudential annual report pages - 1850-2008

'Back end' pages 'Front end' pages

Source: Investis Research

Why <IR>: Volume of reports

Why <IR>: More than financials

STRATEGY AND GOVERNANCE

IMPLEMENTATION PLANS

BUSINESS AS USUAL

Business value

STRATEGIC ISSUES

FORECASTS / PLANS

PAST PERFORMANCE

Reporting content

Why <IR>: The reporting mismatch

Bob Laux Senior Director of Financial Accounting and Reporting

Microsoft CorporationAICPA Insights Article

1. Communicating vs. Complying

2. Reporting the Intangibles

3. Breaking Down Silos

4. Increasing Transparency

Why should you care about <IR>?

PwC took two reports to two teams at Schroders Investment Management House.

1st team studied Coloplast’s ‘full report’

2nd team studied a stripped version ‘financial report’

Source: PwC

Conclusion: “ There is a competition for capital out there – every company needs to question whether its corporate reporting is positioning them for success”

The benefit of giving the full story

What is <IR>?

Outline

strategy, governance, performance, prospects

Financialreporting

Otherreporting

concise communication about value

<IR>: A new focus

Integrated Reporting

integrated report

integrated thinking

What is <IR>?

<IR> aims to:

Efficient and productive allocation of capital

Cohesive and efficient approach to corporate

reporting

Support integrated thinking

Enhance accountability

International <IR> Framework

The Framework

The Framework: Core features

Content Elements

Fundamental Concepts

Guiding Principles

• Value Creation for the organization and for others

• The Capitals

• The Value Creation Process

The Framework: Fundamental Concepts

6 capitals with different combinations and connectivity

The Framework: Fundamental Concepts

The Value Creation Process

The Framework: Core features

Content Elements

Fundamental Concepts

Guiding Principles

The Framework: Guiding Principles

• Strategic focus and future orientation

• Connectivity of information

• Stakeholder relationships

• Materiality

• Conciseness

• Reliability and completeness

• Consistency and comparability

Underpins preparation

Informs content

Presentation of information 

Judgement is needed

Questions to be answered

Unique story

Connections apparent 

Not a set sequence

Not isolated, standalone sections

The Framework: Content elements

• Organizational overview and external environment

• Governance

• Business model

• Risk and opportunities

• Strategy and resource allocation

• Performance

• Outlook

• Basis for preparation and presentation

• General reporting guidance

Discussion Paper

Prototype Framework

Emerging <IR>Database

Building the Business Case for <IR>

Background Papers for <IR>

IIRC Pilot Programme Yearbooks

The Framework journey so far…

Basis for Conclusions

Summary ofSignificant Issues

The Framework journey

Discussion Paper

Prototype Framework

Emerging <IR>Database

Building the Business Case for <IR>

Background Papers for <IR>

IIRC Pilot Programme Yearbooks

The Framework journey ahead

Basis for Conclusions

Summary ofSignificant Issues

• Framework Development

• Guidance and Practice

• Thought leadership

• Academic community

• Databases

• Evidence Base

Business applying <IR>

ORGANIZATIONAL OVERVIEW AND

EXTERNAL ENVIRONMENT

The Go-Ahead Group plc Annual Report and Accounts 2012

The Go-Ahead Group plc Annual Report and Accounts 2012

GOVERNANCE

Marks & Spencer Group plc Annual Report and Financial Statements 2013

BUSINESS MODEL

Lawson, Inc. Integrated Report 2013

Lawson, Inc. Integrated Report 2013

Sasol annual integrated report 2013

Sasol annual integrated report 2013

The Crown Estate Integrated Annual Report and Accounts 2013

Votorantim link <IR> to their Report 2012

RISK AND OPPORTUNITY

Schiphol Annual Report 2012

Schiphol Annual Report 2012

STRATEGY

To build a sustainable physical network that offers the flexibility to align to changes in demand

(New Zealand Post Group LimitedStatement of Corporate Intent 2012-2015)

To develop and deliver, in an economic and sustainable way, a good customer experience, by providing effective products and services.

(New Zealand Post Group LimitedStatement of Corporate Intent 2012-2015)

To ensure long-term value creation for the Group through the further development and growth in Kiwibank.

(New Zealand Post Group LimitedStatement of Corporate Intent 2012-2015)

To ensure the internal structure, process and frameworks in operation at the New Zealand Post Group are positioned to offer the most efficient and profitable outcome for the Group

(New Zealand Post Group LimitedStatement of Corporate Intent 2012-2015)

To create a range of digital services to meet changing customer needs.

(New Zealand Post Group LimitedStatement of Corporate Intent 2012-2015)

To ensure that our people have the skills and capabilities they require to succeed, and to create a culture in the organisation that enables and encourages our people to strive for great customer outcomes

(New Zealand Post Group LimitedStatement of Corporate Intent 2012-2015)

New Zealand Post Group Annual Review 2013

Gold Fields Integrated Annual Review 2012

Gold Fields Integrated Annual Review 2012

PERFORMANCE

Stockland Annual Review 2012

Nedbank Group Integrated Report 2012

Nedbank Group Integrated Report 2012

OUTLOOK

ARM Holdings plc Annual Report & Accounts 2012

ARM Holdings plc Annual Report & Accounts 2012

Novo-Nordisk Annual Report 2012

IIRC Pilot Programme YearbooksEmerging <IR> Database

Resources

www.theiirc.org

InternationalIntegrated ReportingCouncil