Integrated reporting a step closer

13th September 2011


Related Topics

Related tags

  • Management ,
  • Stakeholder engagement ,
  • Corporate governance ,
  • Reporting ,
  • Engagement

Author

IEMA

Investors, regulators and organisations are being asked to comment on a proposed international approach to the integration of financial and sustainability reporting.

The International Integrated Reporting Committee (IIRC) has launched a consultation on a discussion paper defining integrated reporting, its benefits and challenges, and outlining a potential framework for collating such reports.

The framework describes the five guiding principles the IIRC believes are key in taking an integrated approach to reporting, such as strategic focus and connectivity of information, as well as a list of issues that should be included in the report, such as the conditions in which the business operates and its strategic objectives.

According to the IIRC, an organisation’s business model and its “ability to create and sustain value in the short, medium and long term” must be at the heart of their integrated report.

The paper and consultation, which runs until 14 December, represent the latest step in IIRC’s work to coordinate international agreement on a consistent approach to integrated reporting which it believes is the best way to meet the needs of organisations and the demands of stakeholders for more information on their sustainability.

“[Integrated reporting] equips companies to manage their operations, brand and reputation strategically and to manage better any risks that may compromise the long-term sustainability of the business,” said professor Mervyn King, deputy chair of IIRC and chair of the Global Reporting Initiative.

Jim Singh, chief financial officer of Nestlé, agreed: “If you are a company committed to the long term, and one of your ambitions is to be trusted, you have no choice – integrated reporting is the way to communicate.”

International accountancy firm KPMG followed the publication of IIRC’s paper by announcing its own introduction to integrated reporting, offering businesses further guidance on how to apply the IIRC’s principles.

David Matthews, an audit partner at KPMG UK and a member of the IIRC’s working group, urged organisations to get involved in the development of an agreed approach to integrated reporting, saying that better communication of sustainability plans will help them to secure capital.

“Providing strategic and forward looking information about the performance and prospects of the company is a powerful way to convince the capital markets of the worthiness of investing in a company,” he said.

“The prize for those that get it right is capital at a reasonable cost through a better relationship with investors and the capital markets. It is in everyone’s best interests to make integrated reporting work.”

However, an analysis of annual reports from 101 G20 firms published this week argues that many are falling to build sustainability into their financial reports. According to the figures, from corporate reporting consultancy Black Sun, the reports studied met just 43% of what is considered integrated reporting good practice.

To read the IIRC’s discussion paper and for information on how to submit your feedback visit the IIRC website.

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

EU and UK citizens fear net-zero delivery deficit

Support for net zero remains high across the UK and the EU, but the majority of citizens don't believe that major emitters and governments will reach their climate targets in time.

16th May 2024

Read more

There is strong support for renewable energy as a source of economic growth among UK voters, particularly among those intending to switch their support for a political party.

16th May 2024

Read more

Despite cost-of-living concerns, four-fifths of shoppers are willing to pay more for sustainably produced or sourced goods, a global survey has found.

16th May 2024

Read more

One in five UK food businesses are not prepared for EU Deforestation Regulation (EUDR) coming into force in December, a new survey has uncovered.

16th May 2024

Read more

Each person in the UK throws a shocking 35 items of unwanted clothes and textiles into general waste every year on average, according to a new report from WRAP.

2nd May 2024

Read more

Taxing the extraction of fossil fuels in the world’s most advanced economies could raise $720bn (£575bn) by 2030 to support vulnerable countries facing climate damages, analysis has found.

2nd May 2024

Read more

The largest-ever research initiative of its kind has been launched this week to establish a benchmark for the private sector’s contribution to the UK’s 2050 net-zero target.

2nd May 2024

Read more

Weather-related damage to homes and businesses saw insurance claims hit a record high in the UK last year following a succession of storms.

18th April 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close