Please contact Laura Leka lauralekaifacorg if you would like to include the IFAC andor IIRC logos Introduction to Integrated Reporting Overview About the IIRC A new corporate reporting model ID: 779859
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Slide1
These slides are shared with members of the Integrated Reporting PAO Network with limited design elements so that you can add your organization’s branding/template.
Please contact
Laura Leka (
lauraleka@ifac.org
) if you would like to include the IFAC and/or IIRC logo(s).
Slide2Introduction to Integrated Reporting
Slide3Overview
About the IIRC
A new corporate reporting model
The International <IR> Framework
Slide4The
International
Integrated Reporting
Council
Slide5Who is the IIRC?
Investors
Companies
NGOs
Regulators
Standard
setters
Accounting
Slide6IIRC
Vision
The IIRC’s vision is to align:
capital allocation, and
corporate behaviour
to wider goals of:
financial stability, and
sustainable development
through the cycle of:
integrated reporting, and
integrated thinking.
Slide7Slide8Through <IR>
we are seeing progress in…
Slide9A new
corporate
reporting
model
Slide10Integrated Reporting is enhancing the way
organizations
the story of their business
Think
Plan
Report
Slide11It is helping businesses to think holistically
about
to build investor and stakeholder confidence and improve future performance
make
informed decisions
manage key risks
strategy and plans
Slide12Value is more than financial
Source: OCEAN TOMO LLC
January,1,2015
Slide13The reporting mismatch
© International Integrated Reporting Council
Reporting Content
Business Value
Strategic Issues
Forecasts/Plans
Past Performance
Strategy
and Governance
Implementation Plans
Business as usual
Slide14New reports to meet new information needs
Piecemeal addition of “bits” of information
Explosion
of disconnected information
Reporting
overload and a
compliance mindset
Material
information lost in the detail
Slide15Towards a solution:
Value creation
Not just financial
Concise
Strategic focus
Future orientation
Connected
An integrated report should “tell a story”
Slide16How is integrated reporting different?
Thinking:
Isolated
Holistic
Stewardship:
Financial capital
All forms of capital
Focus:
Past, financial
Past and future, connected, strategic
Timeframe:
Short term
Short, medium and long term
Trust:
Narrow disclosures
Greater transparency
Adaptive:
Rule bound
Principles based
Concise:
Long and complex
Concise and material
Technology:
Paper based
Technology enabled
Slide17Integrated: holistic, systems-based
Organization ↔ its external environment
Organization as a whole ↔ its component parts
Past (accountability) ↔ present ↔ future (decisions)
Short term ↔ medium term ↔ long term
Strategy ↔ governance ↔ performance ↔ prospects
Inputs ↔ business model ↔ outputs ↔ outcomes
Value for the organization ↔ value for others
Financial ↔ non-financial
Qua
nt
itative ↔ qualitative
Slide18The
International <IR> Framework
Slide19The
International <
IR>
Framework aims
to:
Efficient and productive allocation of capital
Cohesive and efficient approach to corporate reporting
Support
Integrated
thinking
Enhance accountability
Slide20A concise communication about value creation over time
Strategy, governance,
p
erformance, prospects
Financial
reporting
Other
reporting
Slide21Core features
INTRODUCTION
GUIDING PRINCIPLES
CONTENT
ELEMENTS
USING THE FRAMEWORK
FUNDAMENTAL CONCEPTS
THE CAPITALS
VALUE
CREATION
Slide22The capitals
Natural capital
Social and relationship
capital
Human
capital
Intellectual
capital
Financial capital
Manufactured capital
Slide23The capitals and value creation
The organization
Slide24Inside the organization
Slide25The complete picture
Slide26Core features
INTRODUCTION
GUIDING PRINCIPLES
CONTENT
ELEMENTS
USING THE FRAMEWORK
FUNDAMENTAL CONCEPTS
THE CAPITALS
VALUE
CREATION
STRATEGIC FOCUS AND FUTURE
ORIENTATION
CONNECTIVITY
OF
INFORMATION
STAKEHOLDER RESPONSIVENESS
MATERIALITY
CONCISENESS
RELIABILITY
AND
COMPLETENESS
CONSISTENCY
AND
COMPARABILITY
Slide27STRATEGIC FOCUS AND FUTURE
ORIENTATION
CONNECTIVITY
OF
INFORMATION
STAKEHOLDER RESPONSIVENESS
MATERIALITY
CONCISENESS
RELIABILITY
AND
COMPLETENESS
CONSISTENCY
AND COMPARABILITY
Slide28Core features
INTRODUCTION
GUIDING PRINCIPLES
CONTENT
ELEMENTS
USING THE FRAMEWORK
FUNDAMENTAL CONCEPTS
THE CAPITALS
VALUE
CREATION
STRATEGIC FOCUS AND FUTURE
ORIENTATION
CONNECTIVITY
OF
INFORMATION
STAKEHOLDER RESPONSIVENESS
MATERIALITY
CONCISENESS
RELIABILITY
AND
COMPLETENESS
CONSISTENCY
AND
COMPARABILITY
… OVERVIEW and EXTERNAL
ENVIRONMENT
GOVERNANCE
BUSINESS MODEL
RISKS and OPP’S
STRATEGY and RESOURCE
ALLOCATION
PERFORMANCE
OUTLOOK
BASIS …
Slide29Questions to be answered
Unique story
Connections apparent
Not a set sequence
Not isolated, standalone sections
… OVERVIEW and EXTERNAL
ENVIRONMENT
GOVERNANCE
BUSINESS MODEL
RISKS and OPP’S
STRATEGY and RESOURCE
ALLOCATION
PERFORMANCE
OUTLOOK
BASIS …
Slide30Over
1,500
organizations do <IR>
2,000
participating in <IR> Networks worldwide
83%
of CEOs, CFOs and other C-suite executives
believe that adopting <IR>
would help deliver success
to their
organizations
Over
300
companies have adopted <IR> in Japan
Slide31<IR> Benefits
Slide3279%
Of SA Non-Executive Directors believe
i
ntegrated thinking increases the quality
o
f organisations’ dialogue with shareholders
and other stakeholders
92%
Of participants
see increased understanding
of value creation
87%
<IR> participants believe investors
b
etter understood their strategy
80%
Of investors
believe
quality of
reporting affect professional perception
of management quality
Slide33Getting Started
Slide34<IR> Networks
The Business Network
Public sector
Pension funds
Technology
Banking
Accountancy bodies
Academics
Insurance
Investors
Slide35Resources
Yearbooks, guidance, surveys
Blogs, news and newsletters
www.integratedreporting.org
Creating Value series
examples.integratedreporting.org