IIRC Newsletter
IIRC takes message of alignment to US Securities and Exchange Commission
The IIRC has stressed the strong alignment between Integrated Reporting and the ideology that underpins the Management Discussion and Analysis at a recent presentation to the US Securities and Exchange Commission (SEC). This follows a speech by Mary Jo White, Chair, SEC at the International Corporate Governance Network Conference in which she spoke of the “push for ‘integrated reporting'” from market participants.
Using the Natural Capital Protocol and the <IR> Framework to conserve and enhance the natural world
The Natural Capital Protocol was launched at an event in London during July 2016, the culmination of a collaborative project led by the Natural Capital Coalition to enable businesses to make better decisions by understanding their relationship with natural capital.
Paul Druckman, CEO, IIRC stated, the Protocol “matters because it recognizes the importance of organizations taking broader information sets into consideration, not just financial data.” The IIRC and the Natural Capital Coalition have set out how their approaches are complementary.
New study in French market shows benefit for companies with long-term investors
Recent research demonstrates a connection between larger holdings from long-term active investors and stock market advantages.
One of the key changes in global economic governance that the IIRC is calling for is a shift from short-term capital markets to sustainable capital markets. To achieve this the IIRC is calling for an end to the incentive systems that perpetuate short-term thinking and decision-making and is encouraging the introduction of reporting codes focused on strategy, resource allocation and value creation over the short, medium and long term.
Businesses turn to Integrated Reporting to set out role in achieving SDGs
Professor Mervyn King, Chair of the IIRC Council, has addressed the Fourteenth session of the United Nations Conference on Trade and Development to discuss how the private sector can help in the attainment of the Sustainable Development Goals (SDGs), in particular by aligning corporate strategy to the goals agreed by 193 governments in 2015.
Professor King stated that, “although many of the questions under discussion [regarding the SDGs] concerned sustainability reporting, it cannot be looked at on its own. It has to be integrated with the financial report so that the user can make an informed assessment about the true ‘state of play’ in the company and how it is endeavoring to attain the SDGs.” He continued that the, “six capitals approach of Integrated Reporting captures all of the SDGs.”
New report outlines importance of aligning culture and value creation
The recent publication by the UK’s Financial Reporting Council (FRC), Corporate Culture and the Role of Boards, makes some important observations about the connection between the ability of an organization to create value over the long-term and the culture practiced throughout the business. In a UK context, parliamentary inquiries into the corporate governance of Sports Direct and BHS, have shone a real world spotlight on the implications of poor quality culture on company valuations, jobs and pensions. Specific recommendations in the FRC report to align values and incentives and embed a positive culture throughout the organization are consistent with many of the principles of Integrated Reporting. We would encourage our many stakeholders around the world to read this report and explore ways of implementing its recommendations.