Transcript Slide 1
Integrated Reporting Investing in Responsibility Conference November 2012 Introduction Jessica Fries • Integrated Reporting Network Leader, PwC • Director of the Board and Vice Chair of Working Committee, International Integrated Reporting Council • Executive Chairman, The Prince’s Accounting for Sustainability Project PwC Slide 2 The International Integrated Reporting Council (IIRC) • Financial and sustainability standard setters (IASB, FASB, GRI …) • Securities and financial regulators (IOSCO, TSE and other stock exchanges, FSB…) • Investors (UN PRI, ICGN, asset owners and asset managers) • Companies (WBCSD, UNGC, BSR, 82 pilot companies and others) • Intergovernmental organisations (World Bank, UNCTAD) • Accounting (IFAC, accounting firms, accounting bodies) • Civil society and academia (A4S, WWF, Transparency International, WRI, Harvard, Uni. Sao Paolo, Uni NSW) PwC Slide 3 Changing landscape: the next 20 years Environment Technology Demographic change Socioeconomic structures Global systemic issues Risk & Opportunity Global business issues Career disintegration Complex supply chains Product lifestyles Outsourcing Offshoring Cost cutting New channels PwC 4 Shortcomings with today’s reporting model PwC 5 Fundamental concepts: How the organization creates and sustains value IIRC prototype, October 2012 PwC 6 Increasing length and complexity PwC Importance of the big picture: joining the dots Same volume, different insight Pieces of information without connectivity Number of pieces=40 PwC Close-up pictures (partial connectivity) without big picture Number of pieces=40 Big Picture Number of pieces=40 Principles and content elements Building blocks – 2011 Principles – 2012 prototype • Strategic focus and future orientation • Connectivity of information • Responsiveness and stakeholder inclusiveness • Materiality and conciseness • Reliability • Comparability and consistency IIRC Discussion Paper, September 2011 PwC 9 Integrated reporting and the integrated report Alternative pathways CRChapter Combination PwC Sustainability Integrated Report Website Compliance MI Investors Non-fin. Statements Integration in Annual Report Primary Report Online Integrated Report CR Fin. Statements Integrated Report Embedding Other key stakeholders Limited inclusion Fin. Statements CR Report Annual and Integrated Report CR Report Annual Report Annual Report Integrated Reporting Slide 10 What is clear and what is not Headline findings – PwC FTSE 350 benchmarking 2012 Include strategic priorities 95% PwC Base reporting on strategic themes 28% Slide 11 What is clear and what is not Headline findings – PwC FTSE 350 benchmarking 2012 Discuss future market trends 86% PwC Link market discussion to strategic choices 21% Slide 12 What is clear and what is not Headline findings – PwC FTSE 350 benchmarking 2012 Include some relevant insight into their sustainability issues 78% PwC Embed sustainability in overall strategy 20% Slide 13 What is clear and what is not Headline findings – PwC FTSE 350 benchmarking 2012 Governance reports mentioning the company's culture and values Clearly explain actual Board / Committee activities in the year 49% 34% PwC Slide 14 Roadmap to Integrated Reporting 1H 2012 2H 2012 • Discussion Paper responses • Framework outline • • • • Prototype Examples Benefits Topics 1H 2013 Draft framework 2H 2013 Framework version 1 Pilot Programme (extended into 2014): Companies and Investors Engagement with regulators and other stakeholders PwC Slide 15