integrated reporting investing in responsibility conference november 2012
TRANSCRIPT
Integrated ReportingInvesting in Responsibility Conference November 2012
PwCPwC
Introduction
Jessica Fries
• Integrated Reporting Network Leader, PwC
• Director of the Board and Vice Chair of Working Committee, International Integrated Reporting Council
• Executive Chairman, The Prince’s Accounting for Sustainability Project
Slide 2
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The International Integrated Reporting Council (IIRC)• Financial and sustainability standard setters
(IASB, FASB, GRI …)
• Securities and financial regulators (IOSCO, TSE and other stock exchanges, FSB…)
• Investors (UN PRI, ICGN, asset owners and asset managers)
• Companies (WBCSD, UNGC, BSR, 82 pilot companies and others)
• Intergovernmental organisations (World Bank, UNCTAD)
• Accounting (IFAC, accounting firms, accounting bodies)
• Civil society and academia (A4S, WWF, Transparency International, WRI, Harvard, Uni. Sao Paolo, Uni NSW)
Slide 3
PwC Slide 4PwC
Changing landscape: the next 20 years
Risk & Opportunity
Demographic change
Socioeconomic
structures
Environment Technology
New channels
Career disintegrati
on
Complex supply chains
Outsourcing
Product lifestyles
Offshoring Cost cutting
Global systemic issues
Global business issues
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Shortcomings with today’s reporting model
5
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Fundamental concepts: How the organization creates and sustains value
6
IIRC prototype, October 2012
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Increasing length and complexity
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Number of pieces=40
Big PictureClose-up pictures
(partial connectivity) without big picture
Pieces of information without
connectivity
Number of pieces=40
Number of pieces=40
Importance of the big picture: joining the dotsSame volume, different insight
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Principles and content elements
Building blocks – 2011 Principles – 2012 prototype
• Strategic focus and future orientation
• Connectivity of information
• Responsiveness and stakeholder inclusiveness
• Materiality and conciseness
• Reliability
• Comparability and consistency
9IIRC Discussion Paper, September 2011
PwCPwC
Integrated reporting and the integrated reportAlternative pathways
Slide 10
Annual Report CR Report
Limited inclusion
CR-Chapter
Ann
ual R
epor
t CR
Report
Combination
Primary Report
CR
Com
plia
nce
Integrated ReportIntegration in Annual Report
Integrated Report F
in. Statem
entsA
nnua
l and
Inte
grat
ed
Rep
ort
Fin. S
tatements
EmbeddingW
ebsi
te
MI
Integrated Reporting
Investo
rsIn
tegrated
R
epo
rt
Online
Su
stai
nab
ili
ty
Oth
er k
ey
stak
eho
lder
sN
on-fin. Statem
ents
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Base reporting on strategic themes
What is clear and what is notHeadline findings – PwC FTSE 350 benchmarking 2012
28%Slide 11
Include strategic priorities
95%
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Link market discussion to strategic choices
What is clear and what is notHeadline findings – PwC FTSE 350 benchmarking 2012
21%Slide 12
Discuss future market trends
86%
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Embed sustainability in overall strategy
What is clear and what is notHeadline findings – PwC FTSE 350 benchmarking 2012
20%Slide 13
Include some relevant insight into their sustainability issues
78%
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Clearly explain actual Board / Committee activities in the year
What is clear and what is notHeadline findings – PwC FTSE 350 benchmarking 2012
34%Slide 14
Governance reports mentioning the company's culture and values
49%
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Roadmap to Integrated Reporting
Slide 15
• Discussion Paper responses
• Framework outline
• Prototype
• Examples
• Benefits• Topics
Draft framewor
k
Framework version
1
Pilot Programme (extended into 2014):Companies and Investors
Engagement with regulators and other stakeholders
1H 2012 2H 2012 1H 2013 2H 2013