IIRC Vision About Value Creation 24 June IAE Bordeaux

Transcription

1 IIRC Vision About Value Creation 24 June IAE Bordeaux

2 Page 2 We believe the <IR> journey addresses the gap in the market and would create an architecture for market wide change

3 <IR> explained concise summary of value (investor audience) Financial reporting strategy governance performance prospects Non-financial reporting Page Page 3 3

4 What is <IR>? <IR> is a process It is a communication On value creation over time In a periodic integrated report An integrated report is a concise communication About strategy, governance, performance and prospects In the context of external environment Leading to the creation of value over the short, medium and long term It should be prepared In accordance with the Framework Primarily for providers of financial capital Of benefit to all stakeholders Page 4

5 The international <IR> framework FUNDAMENTAL CONCEPTS Introduction The capitals The business model Value creation GUIDING PRINCIPLES Strategic focus and future orientation Connectivity of information Stakeholder responsiveness Materiality and conciseness Reliability and completeness Consistency and comparability CONTENT ELEMENTS Organizational overview and external environment Governance Opportunities and risks Strategy and resource allocation Business model Performance Future outlook Page 5

6 Integrated thinking: The capitals Source: Incite Sustainability 2.0: A Guide to Competing in a Changing World Page 6

7 Page 7 Integrated thinking: Explain the business model

8 Page 8 IIRC Vision The IIRC s vision is to align capital allocation and corporate behaviour to wider goals of financial stability and sustainable development through the cycle of integrated reporting and thinking.

9 Page 9 The IIRC calls for From Financial Capital Market System to Inclusive Capital Market System From Silo Reporting to Integrated Reporting From Short-term capital markets to Sustainable capital markets

10 Page 10 Investor take up CALPERS (Global Corporate Reporting Dec 2015 / Second reading Mars 2016) «The Board should provide an integrated report that puts historical performance into context and portrays the risks, opportunities and prospects for the company in the future, helping shareowners understand a company s strategic objectives and its progress towards meeting them»

11 Page "We are asking that every CEO lay out for shareholders each year a strategic framework for long-term value creation. Additionally, because boards have a critical role to play in strategic planning, we believe CEOs should explicitly affirm that their boards have reviewed those plans. BlackRock s corporate governance team, in their engagement with companies, will be looking for this framework and board review." Larry Fink, CEO, BlackRock "Efforts by the International Integrated Reporting Council to develop a framework for reporting value creation seem very much in-line with what Mr Fink is suggesting." Sandra Peters, Head of Global Financial Reporting Policy, CFA Institute

12 Page 12 Securities and Exchange Board of India wants yearly tell-all accounts "Whether integrated reporting will happen is no longer a question. We should look at how to implement it in a manner that is not disruptive U.K Sinha, SEBI

13 Page 20 Annexe 1 AEGON

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21 Page 28 Annexe 2 CREST NICHOLSON

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28 Page 35 Annexe 3 SANOFI

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39 Page 46 Annexe 4 Human Capital and <IR> examples

40 ENI s Human Capital approach Page 47 Source:

41 ENI Page 48 Source:

42 ENI Page 49 Source:

43 Page 50 Iberdrola s approach to Human Capital