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IIRC INTEGRATED REPORT 2017 / Engaging with global policy makers and regulators

Engaging with global policy makers and regulators

Strategic theme 5:

Engaging with global policymakers and regulators

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Activities/outputs

Participation in initiatives globally

We remained active in the B20, taking part in a series of the B20 Task Force on Energy, Climate and Resource Efficiency discussions.

We participated in the OECD Expert Group on Measuring Impacts of Business on Well-being, and in the OECD Development Forum.

IIRC CEO Richard Howitt took part in the Eminent Persons Group for the UN Guiding Principles Reporting Framework, which has incorporated integrated reporting as the umbrella, in its draft guidance.

We responded to a Canadian Securities Administrators consultation reviewing its earlier guidance on climate-related disclosures.

Events

We co-organized a major conference to promote adoption of integrated reporting as part of the implementation of the EU’s Non-financial Reporting Directive and;

Co-hosted with Solvaya high-level dinner for leading CFOs, investors and legislator to build understanding of integrated reporting amongst this senior audience and create an atmosphere of open discussion to debate some of the challenges in moving towards sustainable finance.

We delivered the keynote speech at the 4th Asia Business Responsibility Summit and attended the 2017 World Economic Forum meeting in Davos, where we spoke at the launch of the World Business Council for Sustainable Development’s (WBCSD) new report, ‘Sustainability and enterprise risk management: The first step towards integration’.

Other notable engagements

Other notable engagements included meetings with: Chair of Committee 1, IOSCO, and their staff team to discuss the role of integrated reporting and its continued uptake internationally; General Secretary of the International Trade Union Council; UK Financial Reporting Council and the Department for Business, Energy and Industrial Strategy; European Commission Directorates General responsible for company law and banking and finance, as well as a full range of partners working at the EU level; and the International Chamber of Commerce (ICC).

Performance indicators

Regulatory alignment

Regulatory signposting/alignment to integrated reporting 31 Dec 2017 31 Dec 2016 Change
IIRC's priority markets 12 8 4 50%
Percentage of IIRC’s priority markets 39% 26%
Other markets 4 1 3 300%
Total 16 9 7 78%

Our engagement with regulators has helped bring about regulatory alignment and/or signposting to integrated reporting in sixteen countries, up seven from 2016 Brazil, India, Malaysia, Mauritius, New Zealand, Sweden and Turkey. Pages 6-7 show all sixteen countries.

There was also strengthened alignment in Sri Lanka through their Corporate Governance Code, in the UK through their Draft Guidance on the Strategic Report.

Supranational platforms

We are on the agenda of five out of the 10 key supranational platforms that we have identified, namely –

European Commission

The European Commission’s Guidelines on Non-Financial Reporting referenced the leadership and knowledge the IIRC provided in its development, and reflected the key principles of integrated reporting – recognizing the importance of linkages and inter-relations of information. The Directive itself provides an important impetus to 6,000 businesses across Europe to start thinking about broader value creation

The European Union’s High-Level Expert Group on Sustainable Finance, chaired by IIRC Board member Christian Thimann, has brought forward very clear recommendations on the integration of information for investors. The group cites integrated reporting as key to the ‘ultimate ambition’ of convergence to low-carbon growth. This group represents thinking which is highly likely to lead to implementation, and also includes IIRC Council member Claudia Kruse and IIRC Ambassador Dr. Steve Waygood.

We have been appointed to the new Sustainable Development Goals Platform, established by the European Commission, and is the only reporting organization chosen to take part in the platform.

IASB

Refer page 32 for details.

ICGN

ICGN’s ‘Global Governance Principles’, support integrated reporting. This provides a platform for our close partnership – leading to a second joint conference in 2018.

IOSCO

the Committee established a task force to accelerate development of sustainable finance and we have had positive discussions with them regarding the role integrated reporting can play. We have been invited to speak at their Committee on Issuer Accounting, Audit and Disclosure (Committee 1).

UN

IIRC spoke at the annual Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting meeting, and is on the consultative group on matters relating to reporting and SDGs.

Other developments

The FSB upheld the key principles of integrated reporting that companies should adopt an integrated approach to their risk management and that climate change is itself not simply an environmental issue, but a financial challenge for companies and for stability of the global economy. The Task Force specifically recommended alignment with existing reporting frameworks including integrated reporting.

IFAC has called on G20 leaders to “embrace integrated reporting” as a vehicle for building trust and confidence in business and government in their paper, ‘Build Trust. Inspire Confidence. The Global Accountancy Profession’s Call for Action by G20’.

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