BOMBAY CHAMBERS OF COMMERCE & INDUSTRY INTEGRATED REPORTING

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Anthony Sims
5 years ago
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1 Presented by Jan BOMBAY CHAMBERS OF COMMERCE & INDUSTRY INTEGRATED REPORTING

2 FOCUS OF THIS SESSION What are the drivers for <IR>? What is Integrated Reporting <IR>? The <IR> framework PWC roadmap Getting started Open Discussion

3 WHY REPORT? Compliance Communication And Engagement Internal Alignment Brand Building WHY READ REPORTS? Compliance Investment Decisions

Disconnected NATURAL SOCIAL HUMAN INTELLECTUAL Climate

4 EVOLUTION OF REPORTING Industrial Growth Economic Prosperity FINANCIAL MANUFACTURED Complex Regulated Disconnected NATURAL SOCIAL HUMAN INTELLECTUAL Climate Change Technology Traditional Reporting Sustainability Reporting

5 DRIVERS FOR <IR>.

6 COMMUNICATING VALUE Definition of VALUE over the last 20 years

7 LONG TERMISM Long term view towards value creation

8 INFORMATION GAP REPORTER FOCUS READER EXPECTATIONS STRATEGIC ISSUES FORECASTS & PLANS LONG TERM STRATEGY RISKS AND OPPORTUNITIES PAST PERFORMANCE BUSINESS ACTIVITIES Companies are overburdened Investors, stakeholders lack meaningful information

INTEGRATED REPORTING 2018 2010 IIRC constitution 2011 Pilot program 2013 <IR>

9 INTEGRATED REPORTING IIRC constitution 2011 Pilot program 2013 <IR> Framework publication Global Adoption companies Mandates, Endorsements Voluntary adoption

10 DECODING <IR>.

11 WHAT IS AN INTEGRATED REPORT? Integrated report - a concise communication about how an organisation's strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term. THE INTERNATIONAL INTEGRATED REPORTING COUNCIL (IIRC)

12 WHAT IS <IR>? In practical terms <IR> is an evolution of corporate reporting helps communicate value beyond financial capital focuses on strategy and forward looking promotes connectivity of information reduces volume and redundancy in reporting REPORTER READER

INTEGRATED THINKING > INTEGRATED REPORTING > INTEGRATED REPORT Integrated Report Director s Report BRR Financial Statements Mgmt Disc Annual

13 INTEGRATED THINKING > INTEGRATED REPORTING > INTEGRATED REPORT Integrated Report Director s Report BRR Financial Statements Mgmt Disc Annual Report Sustainabiltiy Report GRI ESG Disclosures CDP Integrated Reporting pulls together all sub-reports and data sets to build a holistic story <IR>

14 <IR> framework Fundamental Concepts 6 capitals 7 guiding principles 8 content elements

15 Six Capitals Six Capitals FUNDAMENTAL CONCEPT Value Creation Process

<IR> FRAMEWORK Fundamental Concepts - Value Creation for the organisation and for others - The Capitals - The

information - Stakeholder relationships - Materiality - Conciseness - Reliability and completeness -

Intellectual 8 Content Elements - Organisational overview and external environment - Governance - Business

16 <IR> FRAMEWORK Fundamental Concepts - Value Creation for the organisation and for others - The Capitals - The Value Creation Process 7 Guiding Principles - Strategic focus and future orientation - Connectivity of information - Stakeholder relationships - Materiality - Conciseness - Reliability and completeness - Consistency and comparability 6 Capitals Financial, Manufacturing, Natural, Social and Relationship, Human and Intellectual 8 Content Elements - Organisational overview and external environment - Governance - Business model - Risk and opportunities - Strategy and resource allocation - Performance - Outlook - Basis for preparation and presentation

17 GUIDING PRINCIPLES Underpins preparation Informs content Presentation of information Judgement is needed Strategic focus and future orienta0on Connec0vity of informa0on Stakeholder rela0onships Materiality Conciseness Reliability and completeness Consistency and comparability

18 CONTENT ELEMENTS Questions to be answered Unique story Connections apparent Not a set sequence Not isolated, standalone section Organisa0onal overview and external environment Governance Business model Risk and opportuni0es Strategy and resource alloca0on Performance Outlook Basis for prepara0on and presenta0on

19 ACROSS THE GLOBE EU, UK J-MET SEBI SSE, MSC BM&FBOVE JSE

20 <IR> AND INDIA Regulation 4(1)(d) of SEBI LODR states "the listed entity shall provide adequate and timely information to recognised stock exchange(s) and investors. IOSCO Principle 16 states there should be full, accurate and timely disclosure of financial results, risks and other information that is material to investors decisions.

21 SEBI CIRCULAR Integrated Reporting may be adopted on a voluntary basis from the financial year by top 500 companies which are required to prepare BRR. HOW The information related to Integrated Reporting may be provided - in the annual report separately - by incorporating in Management Discussion & Analysis - by preparing a separate report(annual report prepared as per IR framework). WHERE Incase the company has already provided the relevant information in any other report prepared in accordance with national/international requirement / framework, it may provide appropriate reference to the same in its Integrated Report so as to avoid duplication of information. As a green initiative, the companies may host the Integrated Report on their website and provide appropriate reference to the same in theirannual Report.

22 CSR - BRR - <IR> Social focus - CSR Annexure Sustainability focus - BRR, ESG, GRI Report Value creation focus - Integrated Reporting CSR ESG / BRR <IR> Increasing coverage Increasing transparency Increasing connectivity

23 FEW EXAMPLES.

24 WHO IS DOING <IR>? Over 1, organizations do <IR> Over 50% of CEOs, CFOs and COOs are moving towards <IR> And over 35% say they will 2,000 participating in <IR> Networks worldwide 320 predicted to adopt <IR> in Japan in 2017 International Integrated Reporting Council