The International Integrated Reporting Council welcomes the publication of the revised Australian Corporate Governance Code, which references the role integrated reporting can play in providing investors with a broader range of information to inform their investment decisions.
Integrated reporting also forms a part of Recommendation 7.4 of the code, which looks at disclosure on environmental and social risks and how an entity plans to manage such risks.
Furthermore, the code states, “The principles of integrated reporting can be used in preparing existing reports, for example, the directors’ report or the operating and financial review.”
The publication of this revised corporate governance code on 27 February 2019, comes at a time when increasing numbers of Australia’s largest businesses are adopting and embedding the concepts of integrated reporting.
According to a study by KPMG, around half of Australia’s largest listed organizations are already using the principles of integrated reporting to better communicate how they create value to their shareholders and other stakeholders.
The inclusion of integrated reporting in the Australian Corporate Governance Code is expected to provide further impetus to Australian organizations to embed integrated reporting, as we have seen with other corporate governance codes around the world including in Japan and Malaysia.
Commenting on the news IIRC CEO Richard Howitt said, “As a G20 economy, action by Australia’s regulators as well as widespread adoption by the market, will be noticed around the world. Australia also plays a vital role in the IIRC’s governance. I am grateful to our board members Louise Davidson and Michael Bray, the vice chair of our Council, John Stanhope, and our Ambassador Nick Ridehalgh, for their advocacy and active engagement to help bring about such a positive development for our movement”.