Integrated Reporting Thinking. New Zealand Post Group: New Zealand Post Limited.

Transcription

1 Integrated Reporting Thinking New Zealand Post Group: New Zealand Post Limited.

2 IIRC Pilot Programme Business Network Investor Network

3 Long Term Vision Our long-term vision is a world in which integrated thinking is embedded within mainstream business practice in the public and private sectors, facilitated by <IR> as the corporate reporting norm. The cycle of integrated thinking and reporting, resulting in efficient and productive capital allocation, will act as forces for financial stability and sustainability.

4 Why <IR> The macro perspective: Financial stability Sustainability In practical terms: Concise communication of value more than financial capital Focus on strategy and future orientation Reduce volume Promote connectivity of information

5 Why <IR>: More than financials

6 Why <IR>: The reporting mismatch Reporting content Business value STRATEGIC ISSUES STRATEGY AND GOVERNANCE FORECASTS / PLANS IMPLEMENTATION PLANS PAST PERFORMANCE BUSINESS AS USUAL

7 <IR>: A new focus concise communication about value Financial reporting strategy, governance, performance, prospects Other reporting

8 What is <IR>? integrated thinking Integrated Reporting integrated report

9 Our first integrated report 2013

10 Why Integrated Reporting? Decision point in reporting journey - CRI GRI? Increase the usefulness and ownership of the annual report Improve our understanding of our non-financial assets Support integration of businesses into one group and remove silos Leverage the total value of the group Part of our ongoing commitment to sustainability Further increase transparency and accountability Shift from historical reporting to future focused view of business

11 Why Integrated Reporting? The way that a company is valued has changed 1970s 20% Non-financial TODAY Total value comes from a range of assets People Environment 80% Financial 80% Non-financial 20% Financial Knowledge Society & relationships Manufactured & physical Financial

12 Our approach Board engagement Cross functional steering group Strong support from finance Willingness to give it a go and not expect to get it right first time iterative process

13 What we did Tight timeframe 3 months Focused on working with a few key principles of framework in particular Conciseness and completeness Six capitals No change to data collection Retro fitted data gathered into Six capitals Two volumes Learnt from other pilot businesses

14 What have we gained? Highlighted the interconnections across the business Simplified, coherent view of our business Helps break down silos An improved understanding of the value of our non financial assets the intangibles Shorter more accessible report increased transparency Greater ownership of report

15 Next steps Connecting the dots: embedding integrated thinking into internal processes Areas of focus Business plan structured around the six capitals Materiality KPIs Stakeholder engagement Use of IR language in internal communications Improving the linkages between the strategy and the capitals

16 EXERCISE

17 Introduction to the six capitals

18 Capitals exercise Working in pairs or small groups Take 5-10 minutes to work alone using the handout provided, think about how you would define/describe the five non-financial capitals for your organisation. Jot down some thoughts about what you would include under each capital Take 10 minutes to discuss in your pair/group: How easy/hard was it to define the capitals for your organisation? Were some capitals easier to define than others? Are all capitals relevant/material for your organisation? How would measure the different capitals?