the future of corporate reporting is integrated!
DESCRIPTION
The future of corporate reporting is Integrated!. Хеннинг Драгер Relationships Manager International Integrated Reporting Council (IIRC) МИРБИС - 18 апреля 2012. Agenda. What is Integrated Reporting (IR) and why do we need it? Evolving reporting trends – where are we going? - PowerPoint PPT PresentationTRANSCRIPT
The future of corporate reporting is Integrated!
Хеннинг ДрагерRelationships Manager
International Integrated Reporting Council (IIRC)
МИРБИС - 18 апреля 2012
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Agenda
What is Integrated Reporting (IR) and why do we need it?
Evolving reporting trends – where are we going?
About the IIRC and IR Pilot Project
Russian engagement needed!
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The global context is changing!Greenhouse gas emissions keep rising
Environmental degradation jeopardises people’s quality of life
The world could be running out of some resources
Our footprint is growing!
Driving increased demand for disclosure!
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Our choice…
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• “Window dressing”• Business as usual reporting
• Strategic accounting for & integration of all impacts• Strategic resource allocation
The importance of reporting
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• Influences decisions and actions of management
• An essential element of corporate governance
• Influences decisions and actions of shareholders and
other stakeholders
• Affects resource allocation (financial, natural and
human resources) in society
• Critical for investor confidence
• Influences perceptions of the company’s customers,
vendors, and employees
• Shapes how a company sees itself
Challenges
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Financial
• Complexity• Meaningful narrative
information• Reporting on risk,
executive compensation and corporate governance
• Auditing for fraud
Non-financial
• Lack of standards• Lack of common
terminology• Definition of “materiality”• Underdeveloped audit
methodologies• Controversial role of the
Global Reporting Initiative
• Competing standard setters
Corporate Reports: Increasing length and complexity
Source: Investis research - PwC
Prudential annual report pages 1850-2008
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“Corporate reporting…has got too big, too cumbersome
and incomprehensible …”Source: Tomorrow’s Corporate Reporting : A Critical System at Risk –
CIMA and PwC
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INTEGRATED REPORTING IS...
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The evolution of Reporting…
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…Integrated Reporting – the Future
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IR Elements
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Central themesBusiness model & value creation
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The IIRC - some of the participating organisations
Chairman - Professor Mervyn King, King report on corporate governance
Deputy Chairman - Christy Wood, Chairman ICGN
Chief Executive Officer - Paul Druckman
Chairman of the working group - Ian Ball, CEO IFAC
Corporate networks• UN Global Compact• BSR• CERES• Global Alliance• WEF
Companies• RosAtom• Rosneft• Microsoft• GE• Natura• 100 Group• Novo Nordisk• China Light & Power• Nestlé• HSBC• EnBw
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The IIRC – more stakeholders
Regulators, Standards Setters• IASB• FASB• GRI• CDSB
Stock Exchanges• IOSCO• Tokyo Stock Exchange• London Stock Exchange/100 Group• Financial Stability Board (observer)
Investor networks• UN PRI• UNEP-FI• ICGN• INCR
Investors• Aviva Investors• APG• EFFAS• Hermes EOS• General Commissioner, France• Railpen
IGOs• UNCTAD• World Bank• IFAC• ACCA• JICPA• SAICA
Accounting• ICAEW• PwC, E&Y, GT• Deloitte, KPMG, BDO
Civil Society• Transparency International• WWF• WRI• A4S
Academia• Harvard University• University Sao Paolo• University New South Wales• Volans
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About stakeholder expectations (1)
On reading a corporate report users should be able to tell that:
•The company has not profited at the expense of the environment, human rights, a lack of integrity or society;
•There are adequate controls in place to monitor and manage material risks and opportunities;
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About stakeholder expectations (2)
• Remuneration is linked to overall performance which includes social, environmental and financial aspects;
• There is an interactive communication with the stakeholders who are strategic to the company’s business; and
• The company is conducting a sustainable business
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• 82 international companies have joined the Integrated Reporting Pilot Programme which launched in October 2011
• Pilots will explore <IR> in the context of their organisations and be critical to the development of an Integrated Reporting Framework
• Leading companies and investors developing and exchange good practice in this two year programme
Current reporting - what is an IR?
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Actual and expected benefits of <IR> so far
• Two primary benefits identified:
o reporting against KPIs which align to the corporate strategycooperation and collaboration across the business
• Numerous other benefits include:o telling the story about what the core business doeso risk assessment focused on material riskso wider knowledge of non-financial business driverso discussing the future considering finance and sustainabilityo knowledge across the business and sharing best practice
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Our Future Direction
• Continue developing the IR Framework o draw on Pilot Programme experienceso Exposure Draft in 2012
• Work with others on measurement and reporting relevant to IR
• Explore with regulators etc opportunities to harmonise reporting requirements within and across jurisdictions
• Conduct regional roundtables and other engagement and communications activities + public consultation regarding ongoing governance of Integrated Reporting
• G20 Moscow 2013 – support for mandatory, global standard development 21
• IR Framework needs Russian input to be truly global!
• RosAtom and Rosneft are leading the way – will other corporates
follow?
• Corporate Governance and transparency issues can be covered
by adopting IR
• MIRBIS demonstrating the importance of academia and educational
involvement – development of future skill sets
• We welcome you to join the IR Pilot Programme, IIRC working
groups and get the word out about IR!22
Please contact us:
Henning Dräger
Mobile: +38 050 452 20 37
Work: +38 044 393 26 87
www: theiirc.org
CПАСИБО
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