What is Integrated Reporting <ir> and how does it enable a business to tell its value creation story? Understand key concepts in the Consultation Draft of the International <ir> Framework and how this market-led initiative is getting global traction. Hear how it fits with existing reporting practice and the wider reporting landscape, here in the UK and internationally. Michael will present about the Framework from a technical perspective and Kate will explain how the IIRC engages with business, investors and other stakeholders, they will also put <ir> in the wider reporting landscape.

1. Best practice: corporate reporting
Kate Jefferies and Michael Nugent
2 July 2013

2. Who is the IIRC?
What is <IR>?
The Consultation Draft
How you can participate
Outline

3. NGOs
Regulators
Companies
Accounting
Standard
setters
Investors
Chair: Prof Mervyn King
CEO: Paul Druckman
Who is the IIRC?

4. … globally accepted framework
… strategy, governance, performance and prospects
… clear, concise and comparable
… evolution of corporate reporting
… financial, governance, management commentary
and sustainability reporting
… adoption by report preparers
… recognition of standard setters and investors.
Mission

5. … corporate reporting norm
… organizations, their investors and other
stakeholders
… informed decision-making
… efficient capital allocation
… creation and preservation of value
… more sustainable global economy.
Vision

6. IIRC
PILOT PROGRAMME
BUSINESS
NETWORK
INVESTOR
NETWORK

7. Who is the IIRC?
What is <IR>?
The Consultation Draft
How you can participate
Outline

8. • communication
• value creation over time
• a periodic integrated report
<IR> is a
process
• strategy, governance, performance
and prospects
• external environment
• creation of value over the short,
medium and long term
An integrated
report is a
concise
communication
• in accordance with the Framework
• primarily for providers of financial
capital
• of benefit to all stakeholders
It is prepared
What is <IR>?

9. strategy, governance,
performance,
prospects
Financial
reporting
Other
reporting
concise communication about value
A new focus

10. Catalyse corporate
reporting
Enhance
account-
ability
Inform allocation
financial capital
Support
integrated
thinking
Objectives

11. The essence of <IR>

12. Who is the IIRC?
What is <IR>?
The Consultation Draft
How you can participate
Outline

13. The Consultation Draft
Consultation Draft of the
International <IR>
Framework
• The IIRC and the process
• Request for comment
• Consultation questions
• Draft Framework
www.theiirc.org/consultationdraft/2013

14. FUNDAMENTAL
CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
Core features

15. FUNDAMENTAL
CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
• INTRODUCTION
• THE CAPITALS
• THE BUSINESS
MODEL
• VALUE
CREATION
Core features

16. Natural capital
Social and
relationship
capital
Human
capital
Intellectual
capital
Financial capital
Manufactured
capital
Financial capital
Manufactured
capital
The capitals

17. Business model

18. <IR> explains how an organization creates value over
time.
• Serving the interests of, and working
with, all key stakeholders
• Financial returns plus effects on other
capitals and other stakeholders
• Increase, decrease or transformation of
the capitals
• A wide range of interactions, activities,
relationships, and causes and effects
• Provide information, not measure value
Creating value

19. FUNDAMENTAL
CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
• INTRODUCTION
• THE CAPITALS
• THE BUSINESS
MODEL
• VALUE
CREATION
Core features

20. FUNDAMENTAL
CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
• STRATEGIC FOCUS
AND FUTURE
ORIENTATION
• CONNECTIVITY OF
INFORMATION
• STAKEHOLDER
RESPONSIVENESS
• MATERIALITY AND
CONCISENESS
• RELIABILITY AND
COMPLETENESS
• CONSISTENCY AND
COMPARABILITY
• INTRODUCTION
• THE CAPITALS
• THE BUSINESS
MODEL
• VALUE
CREATION
Core features

21. FUNDAMENTAL
CONCEPTS
GUIDING PRINCIPLES CONTENT ELEMENTS
• STRATEGIC FOCUS
AND FUTURE
ORIENTATION
• CONNECTIVITY OF
INFORMATION
• STAKEHOLDER
RESPONSIVENESS
• MATERIALITY AND
CONCISENESS
• RELIABILITY AND
COMPLETENESS
• CONSISTENCY AND
COMPARABILITY
• ORGANIZATIONAL
OVERVIEW AND
EXTERNAL
ENVIRONMENT
• GOVERNANCE
• OPPORTUNITIES
AND RISKS
• STRATEGY AND
RESOURCE
ALLOCATION
• BUSINESS MODEL
• PERFORMANCE
• FUTURE OUTLOOK
• INTRODUCTION
• THE CAPITALS
• THE BUSINESS
MODEL
• VALUE
CREATION
Core features

22. • Global context and South Africa
• European Commission issued a proposal to amend
two European Council Directives
• BIS: ‘The Future of Narrative Reporting: a new
structure for narrative reporting’
<IR> and the reporting landscape

23. Who is the IIRC?
What is <IR>?
The Consultation Draft
How you can participate
Outline

24. READ IT – CRITIQUE IT – FEEDBACK TO US
APRIL
16
JULY
15
Consultation period

25. IIRC Pilot
Programme
Yearbook
Emerging
<IR>
Database
Background
Papers
Building the
Business
Case
CURRENT IIRC RESOURCES

26. www.theiirc.org/consultationdraft2013
• Download form
• Consultation questions
• Comments on all aspects of the
Framework are welcome
• Any or all
• Please respond whether in
agreement or not
Responses

27. YOUR
INVITATION
TO SHAPE THE
FUTURE OF
CORPORATE
REPORTING
www.theiirc.org/consultationdraft/2013

28. www.theiirc.org/consultationdraft2013
kate.jefferies@theiirc.org michael.nugent@theiirc.org