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@GRIAusConf_Plenary – The Role of Integrated Reporting in Value Creation - Michael Bray
 

@GRIAusConf_Plenary – The Role of Integrated Reporting in Value Creation - Michael Bray

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    @GRIAusConf_Plenary – The Role of Integrated Reporting in Value Creation - Michael Bray @GRIAusConf_Plenary – The Role of Integrated Reporting in Value Creation - Michael Bray Presentation Transcript

    • The Role of IntegratedReporting in Value Creation.Chair: Karin Ireton, Director, Group Sustainability Management,Standard Bank Group, South AfricaNelmara Arbex, Deputy Chief Executive, Global Reporting InitiativeMichael Bray, Chair, Better Business Reporting Group, KPMGNathan Fabian, Chief Executive, Investor Group on Climate ChangeDr. Jeanne Ng, Group Environmental Affairs, CLP Holdings LimitedJohn Stanhope, Chairman, Financial Reporting Council’s Integrated ReportingTaskforce; Former Chief Financial Officer, Telstra
    • The role of IntegratedReporting in value creation Is Integrated Reporting going to change the world? March 2012 Michael Bray
    • The Australian Business Reporting Leaders Forum is moving from ‘facilitating’ to‘influencing’ “We are very supportive of the great work done by the BRLF in Australia to generate interest and discussion around <IR>. They have done a superb job in harnessing input and presenting that back to the IIRC.” Banarra Submission on IIRC Discussion Paper ■ Project of Society for Knowledge Economics (SKE) - president is Steve Vamos ■ Participants include CFOs, directors, sustainability officers, investor relations officers, „big 4‟ accounting firms, academia and regulators ■ Regular face to face meetings commenced in April 2011 2010 2011 2012 2013 2014 and beyond Drive/influence Developed business case implementation of IR IIRC Move towards Integrated Report established Reviewed early draft of IIRC in Australia implementation becomes flagship discussion paper GRI Conference© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 2(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks ofKPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
    • Key themes – AustralianSubmissions on <IR>FrameworkKey Themes Role of WICI ■ Submissions from a broad range of ■ Facilitate the development of a global stakeholders business reporting framework for ■ Strong support for the IIRC and developing a measuring and reporting overall globally <IR> consistent framework corporate performance to shareholders ■ Calls for a fully worked conceptual framework and other stakeholders – „what does it look like‟? ■ Working towards development of ■ Strong support for business model focus – common idea on key performance operational guidance needed indicators (KPIs) 3-Way ■ Demonstrate that it is not just adding more KPI reports – front end of annual reports? Concept ■ How does it sit with financial reporting? ■ Does <IR> really lead to integrated thinking or can <IR> give the impression that integrated XBRL thinking exists when it does not? Taxonomy ■ Need to deal more authoritatively with the „commercially sensitive information‟ and „director liability objections‟ Industry KPI Libraries - Automotive, Pharmaceuticals, Mining, Electronic Devices, ■ Strong support for investor focus Telecommunications, Fashion & Luxury© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 3(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks ofKPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
    • IIRC Pilot Organisations – business is taking notice Europe Europe Asia Pacific Americas  ACCA - Accounting  ENI – Oil & Gas  China Light & Power - Energy  Cliffs Natural Resources – Mining  AEGON – Insurance / Funds  Flughafen Munchen –  Diesel & Motor Engineering Industrial Markets  Coca Cola – Consumer  AkzoNobel - Chemicals  MECU – Banking Markets  Leaseplan – Finance  ARM Holdings - Hi-Tech  National Australia Bank –  Microsoft – Hi-Tech  HSBC - Banking Banking  Atlantia – Industrial Markets  Natura Cosmeticos –  KPMG - Accounting  Showa Denkai – Consumer  BBVA - Banking Consumer Markets Markets  Marks & Spencer – Retail  Bwise – Industrial Markets  pwc – Accounting  Stockland - Property  N.V. Luchthaven Schiphol  Chartered Institute of Building  Prudential Financial – Funds  Takeda - Pharmaceuticals  Novo Nordisk  CNDCEC - Accounting  Vancity – Banking  Randstad – Industrial Markets  Danone - Consumer Markets  State Nuclear Energy Co  Deloitte NL – Accounting (Rosatom) – Energy Largest 400 companies in  Diesel & Motor Engineering – Africa  Vestas Wind Systems – South Africa are now building Industrial Markets  Eskom - Energy Energy Integrated Reports for year  Edelman – Media  Gold Fields – Mining  Via Gutenberg – Industrial ending 31 March 2012  EnBW Energie Baden- Markets Wurttemberg – Energy ■ 60 globally significant  Volvo – Motor Vehicle  Enegas - Energy ■ 20% in financial services  ENEL – Energy ■ 20% in energy and natural resources ■ 20% in Asia Pacific ■ 3 in Australia© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 4(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks ofKPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
    • South Africa – leading the way?Mandate Framework ■ Clearing up some confusion about the nature ■ Global and South African frameworks are of the JSE „mandate‟ aligned and will be brought into line ■ May no longer produce an <IR> Exposure Draft in South Africa – fall in line behind IIRC Integrated reports in practice ■ Many reports labelled „Integrated Reports‟ pre-date IIRC ■ There is no requirement for an annual report – most framework and in some instances pre-date South African incorporating <IR> at front end of annual report IR framework ■ Organisational buy-in, top leadership, balanced steering ■ Mining, energy and banking industries are making the group are critical success factors most progress ■ Business model/value creation-centric and materiality ■ „Underlying profit‟ debate changed in South Africa – driven – „golden thread‟ replaced by a more rewarding discussion about what is relevant enough to the business model to be included in the <IR> – financial and non-financial© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 5(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks ofKPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
    • Integrated Reporting will assist with the Australian energy financing challenge Will Australia’s energy financing challenge be a gap or an opportunity? KPMG recommendations include ■ An Integrated Report be prepared by the government on a timely basis in relation to each four yearly review. ■ Encourage legislation or regulation to accelerate the adoption of Integrated Reporting by energy businesses to provide© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of financiers with a better 6KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. basis for capital allocation.
    • Will Integrated Reporting change the world? The KPMG Better Business Reporting Journey Results ■ The integrated report <IR> becomes the flagship ■ Meaningful reports that clearly articulate business model/value creation ■ Capital markets able to make informed decisions ■ Improved basis for capital allocation ■ Big implications for the accounting profession© 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 7(“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks ofKPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
    • © 2012 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliatedwith KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International).Liability limited by a scheme approved under Professional Standards Legislation.