Agenda. Introductions The context for Integrated Reporting <IR> The IIRC Draft framework proposals Q&A

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2 Agenda Introductions The context for Integrated Reporting <IR> The IIRC Draft framework proposals Q&A

3 Context for Integrated Reporting

4 Degradation Growth The world has changed reporting must too The world population is increasingly urban Global population by type of area and by region: Global economic power is shifting Top 10 economies by GDP in 2050 The global middle class is rapidly expanding Population in low- and middle-income countries earning $4,000-$17,000 per capita (purchasing power parity) Source: UN Population Division, World Population Prospects: The 2008 Revision, 2008 Source: Goldman Sachs, BRICs and Beyond, 2007 Source: World Bank, Global Economic Prospects, 2007 Greenhouse gas emissions keep rising GHG emissions by regions Environmental degradation jeopardises people s quality of life People living in areas of water stress by level of stress The world could be running out of some resources Global supply forecasts according to the implied ultimate recoverable resources of conventional oil, date of peak production and the postpeak aggregate decline rate Source: UN Population Division, World Population Prospects: The 2008 Revision, 2008 Source: Goldman Sachs, BRICs and Beyond, 2007 Source: World Bank, Global Economic Prospects, 2007 Source WBCSD Vision 2050

5 The evolution of Reporting Source: Towards Integrated Reporting Communicating Value in the 21st Century

6 the emergence of Integrated Reporting Source: Towards Integrated Reporting Communicating Value in the 21st Century

7 The IIRC

8 Establishment of the IIRC Objectives - Bring together relevant parties to develop and implement an integrated reporting model Ensure material non-financial factors are reflected in international reporting standards Facilitate convergence to increase consistency, avoid reporting burden and enable comparability on an international basis 8

9 International Integrated Reporting Framework - overview

10 FRAMEWORK AN INTEGRATED REPORT Sustainability Strategy & Decision-making Economic value Supporting the information needs of investors Showing the broader and long term consequences of decision-making Bringing reporting closer to the information used by management Rebalancing performance metrics away from emphasis on short term practice

11 How is Integrated Reporting Different? Thinking: Stewardship: Focus: Timeframe: Disconnected Financial capital Past, financial Short term Integrated Trust: Narrow disclosures All forms of capital Past and future, connected, strategic Short, medium and long term Greater transparency Adaptive: Rule bound Responsive to individual circumstances Concise: Long and complex Concise and material Technology enabled: Paper based Technology enabled 11

12 Central themes Business model & value creation 12

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14 What Will it Mean for Me? Benefits and Challenges 14

15 Future Direction Continue developing the International Integrated Reporting Framework draw on Pilot Programme experiences Exposure Draft in 2012 Standard in 2013 Work with others on measurement and reporting relevant to Integrated Reporting Explore with regulators etc opportunities to harmonize reporting requirements within and across jurisdictions Conduct regional roundtables and other engagement and communications activities Public consultation regarding ongoing governance of Integrated Reporting 15

16 Questions?

17 For more information Read the Discussion Paper, available on the IIRC website Contact the IIRC by

18 Getting involved

19 What is the Pilot Programme? A two year programme: Trying and testing IIRC s proposed principles for Integrated Reporting In support of the development of an International Integrated Reporting Framework Asking leading companies and investors to develop and exchange good practice Visit: 19