The International Integrated Reporting Council (IIRC) is today, 20 February 2020, beginning the process of refreshing the International <IR> Framework, and calling for market feedback on specific themes that will inform the nature and direction of the revision.
Coinciding with the IIRC’s tenth anniversary in 2020, the revision will respond to an evolving market context and further embed integrated reporting and thinking into mainstream business practice.This revision is the first since the <IR> Framework was published in December 2013.
The corporate reporting system has progressed considerably since then, with businesses around the world acknowledging the increased importance of a range of capitals beyond purely financial. Organizations are also adapting and responding to global megatrends, such as the Sustainable Development Goals and climate change, a growing focus on stewardship and corporate governance, and inclusive capitalism.
Within this context, integrated reporting has solidified its role in changing the way companies think, plan and communicate their value creation on a multi-capital basis.
Company boards are adopting the principles of integrated reporting to manage risks, opportunities and outcomes, and to report to investors and other stakeholders on their strategy, governance, performance and prospects for long term success. The focus of the revision is to emphasize how organizations can use the <IR> Framework even more effectively.
Embracing an evolving context and ensuring we are market led is at the heart of the IIRC’s decision to refresh the <IR> Framework and firmly entrench the relevance of integrated reporting in a rapidly changing corporate landscape.
The IIRC has identified key themes around which it invites feedback, outlined in three topic papers launched today – covering business model considerations, responsibility for an integrated report and charting a path forward. Each topic paper separately invites market feedback via an online survey, to cater to respondents’ areas of interest, knowledge and experience.
Views can be shared here between Thursday 20 February and Friday 20 March 2020. Input on the topic papers will inform the proposals in a planned May 2020 Consultation Draft of the <IR> Framework.
Commenting, Lisa French, Chief Technical Officer, IIRC said:
“Over the last seven years, the IIRC has learned a great deal from the application of the <IR> Framework by around 2,000 businesses in over 70 countries. While the feedback is that the <IR> Framework is a robust tool that has stood the test of time, our <IR> Business Network participants and others in the corporate reporting system have been clear about where they believe minor modifications and clarifications will enhance the effectiveness of the <IR> Framework.
“Our three topic papers are central to how the <IR> Framework and perhaps the IIRC’s broader agenda, should evolve. With this in mind, we are keen to hear from you now, so that the consultation draft we release in May 2020 reflects your experiences and meets your demands.”
For more details about the 2020 revision process please visit: www.integratedreporting.org/2020revision
The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, the accounting profession, academia and NGOs. The coalition promotes communication about value creation as the next step in the evolution of corporate reporting.
Please contact Zara Maung, Communications Associate, IIRC on [email protected]
Timeline and key themes of the revision:
In 2017, the IIRC invited market feedback on the <IR> Framework’s overall effectiveness and ease of implementation. Through over 400 voices expressed through regional roundtables and an online survey, one point became very clear: the core principles of integrated reporting continue to stand the test of time.
The IIRC coalition echoed this view at its November 2019 Council meeting when it endorsed a modest 2020 update to the <IR> Framework. With this in mind, the revision process will cover matters of emphasis and clarifications raised by users and preparers of integrated reports. Concurrently, we will seek market input on select themes.
Each theme is explored in a dedicated topic paper, which invites feedback during a 30-day window from Thursday 20 February until Friday 20 March, 2020 (23:59 GMT).
The first two topic papers, which address the responsibility for an integrated report and business model considerations, relate to the current <IR> Framework revision process. The third topic paper forges ahead with themes shaping the future of corporate reporting, including extended assurance and the role of technology. Feedback on this paper will inform the IIRC’s longer term strategy.
In accordance with the IIRC’s Procedures Handbook, all feedback received will be shared publicly. Proposed amendments to the <IR> Framework will receive 90-day public exposure via a Consultation Draft, launching in May 2020. The revised <IR> Framework is due for release at the end of 2020.