Paul Druckman• Chairman, Executive Board - The Prince’s

Accounting for Sustainability Project (A4S)• Co-chair, IIRC Working Group

Amsterdam - April 2011

"towards a new model..integrated reporting"

Evolution of reporting

1960 1980 2000 2020

Integrated Reporting – focussing on the top slice

Slide 4

Integrated reporting framework

Provides the top level structure for the whole reporting pyramid

Sets a framework to encourage greater linkage between existing reporting silos.

Why the IIRC was established•Bring together financial standard setters (IASB, FASB, IFAC), securities regulators (IOSCO) and sustainability standard setters (GRI, AccountAbility) with representatives from companies, investors and civil society to develop and implement an integrated reporting model

•Facilitate convergence to increase consistency, avoid reporting burden and enable comparability on an international basis

“To create a globally accepted Integrated Reporting framework which brings together financial, environmental, social and governance information in a clear, concise, consistent and comparable format. The aim is to help with the development of more comprehensive and comprehensible information about organizations, prospective as well as retrospective, to support transition to a more sustainable global economy.”

IIRC Membership - extract• Sir Michael Peat, Principal Private Secretary to TRH The Prince of Wales and The Duchess of Cornwall (Chairman)

• Professor Mervyn King, Chairman, King Committee on Corporate Governance and Chairman, GRI (Deputy Chairman)

• Charles A. McDonough, Vice President and Controller, The World Bank

• Göran Tidström, President, IFAC

• Professor Nelson Carvalho, Universidade de São Paulo, Brazil Chairman, 25th Session of UNCTAD’s ISAR

• Paul Clements-Hunt, Head of Unit, UNEP FI

• Jane Diplock, Chairman of the New Zealand Securities Commission and Executive Committee of the IOSCO

• Robert Eccles, Harvard Business School

• Leslie Seidman, Chairman, FASB

• Ishaat Hussain, Chief Financial Officer, Tata

• Professor Angelien Kemna, Chief Investment Officer, APG

• Huguette Labelle, Chair, Transparency International

• Dennis Nally, Chairman, PricewaterhouseCoopers International Limited

• Atsushi Saito, President & CEO, Tokyo Stock Exchange Group, Inc

• Rick Samans, Managing Director, WEF and Chairman, CDSB

• Jim Singh, Chief Financial Officer, Nestle

• Sir David Tweedie, Chairman, IASB

• Christy Wood, Chair, ICGN

Underlying it all.....

Roadmap – making a vision a reality

10

Work-stream Description Output

1. Integrated Reporting Framework development

Proposals for an integrated reporting framework

Discussion Paper for public consultation during June/July 2011

2. Engagement and communications

Raise awareness of the need for integrated reporting and develop a consensus on the response required

Support for proposals taken to the G20 in November 2011

3. Governance of Integrated Reporting

Proposals for the role of the IIRC and other organisations to achieve the adoption and oversight of integrated reporting in the medium- to long-term

Discussion Paper for public consultation during June/July 2011

Immediate Work Plan

October 2010 Late May 2011Public consultation ending 31 July 2011

March /April 2011Stakeholder workshops

2011 Key milestones

Discussion Paper

G20proposals

November 2011

Beijing

Meetings

- IIRC

- Working group

- Pilots

Jan 2011

São Paolo

NewYork

May 2011 Sept 2011

Regional round-tables

Oct 2010 Feb 2011 Oct 2011Aug 2011

Call for evidence

Public consultation

Ongoing engagement and consultationNewsletters ; Online integrated reporting community forum discussions ; Presentations at conferences, seminars

and other meetings ; One-to-one meetings

Mar 2011Kick-off

Pilots conducted

June-July 2011

Roadmap – making a vision a reality

Discussion Paper

Exposure Draft Framework

consultation pilotsmonitoring

national activities

standard setters/regulators/governments

/G20

continuing evolution

Building momentum – sample

Proposals toG20 Finance

ministers & Heads of State Oct/Nov

WEF, DavosJanuary

IIRC, BeijingJanuary

G8 CR initiativeParis

September

WFE call to G20, Cape Town,

October

World Federation of Exchanges (WFE)

Mexico, March

Regional Roundtables from April 2011

ICGN, ParisSeptember

One on one engagement with Government, Sherpas, Business, Investors & other opinion leaders

Building portfolio of public statements of support

Pilot Programme commencesSeptember

IIRC, New York/Washington

May

UNEP-FIOctober

PRI clearinghouse

call – September (TBC)

Roundtables – an indication

Japan [tbc]

US NY – June LA – July

with AICPA & others

Paris[June] with

Credit Agricole

Frankfurt21 June

with DVFA

Brussels17 June

with FEESydneyApril 11th.

with BRLF

Rio[July]

[with GRI]

Davos27 Januarywith WEF

Mumbai19 January

with GRI & GTZ

London 15 Dec 10with A4S

IR Pilot Programme

Contents of the Discussion Paper

PART I

Background/Preface - Who is IIRC, high-level vision, 2-

year plan

Executive Summary

1. Introduction–What is IR?

2. Business case

3. Vision

4. Roadmap, enabler and barriers

PART II

The Framework• Model• Principles• Elements

TIMELINEShort Medium Longer

E X T E R N A L F A C T O R S

STRA

TEGI

C OB

JECT

IVES

GOVERNANCE

OPERATIONS& PROCESSES

L

PERFORMANCE

BUSINESS MODEL:HOW THE ORGANIZATION CREATES VALUE

POOL OF FIVE CAPITALS

Financial and Manufactured

Human

Intellectual

Natural

Social

POOL OF FIVE CAPITALS

Financial and Manufactured

Human

Intellectual

Natural

Social

I N T E G R A T E D R E P O R T I N G

RESOURCE&

RELATIONSHIPMANAGEMENT

RISKS AND OPPORTUNITIES

STRATEGIES

“5 Capitals”

Financial capital:

Intellectual Capital:

Human capital:

Natural capital:

Social capital:

Your contribution......

• Educate, influence and communicate

• Comment on Discussion Paper

• Potential pilots

www.theiirc.org

paul@druckman.co.uk