Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

How Integrated Reporting provides insight into business strategy and prospects

10,259 views

Published on

In collaboration with KPMG, the IIRC has developed a slide deck that helps investors understand what Integrated Reporting can mean for them and why they should be encouraging businesses to adopt it. It takes them through the evidence in support of Integrated Reporting and addresses some common misconceptions.

Published in: Investor Relations
  • You can hardly find a student who enjoys writing a college papers. Among all the other tasks they get assigned in college, writing essays is one of the most difficult assignments. Fortunately for students, there are many offers nowadays which help to make this process easier. The best service which can help you is ⇒ www.HelpWriting.net ⇐
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Writing a good research paper isn't easy and it's the fruit of hard work. For help you can check writing expert. Check out, please ⇒ www.WritePaper.info ⇐ I think they are the best
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • The professtional essay writer are having more knowledege about the writing papers. The professional essay writer are providing the best essay writing services papers to the students. The writeersity writing company had to providing the more writing papers for the professtionalist. The papers should be very quality and possible to acedemic success. HelpWriting.net Good luck!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

How Integrated Reporting provides insight into business strategy and prospects

  1. 1. Integrated Reporting In association with How <IR> provides insight into business strategy and prospects
  2. 2. © International Integrated Reporting Council What is <IR>? Put simply, it’s an evolution of corporate reporting An integrated report concisely communicates the ways in which an organization’s activities lead to value creation for shareholders
  3. 3. © International Integrated Reporting Council© International Integrated Reporting Council <IR> can give investors… A better link between performance information and the drivers of business value A clearer picture of management progress in implementing strategy Better insight into the underlying health of the business
  4. 4. © International Integrated Reporting Council The Framework The International <IR> Framework is a tool to help companies deliver better corporate reports. It supports reporters in their efforts to articulate their strategy and performance more clearly.
  5. 5. © International Integrated Reporting Council The reporting gap
  6. 6. © International Integrated Reporting Council Filling the gap Past performance (The financials) Plans Report content Regulation and reliability have led corporate reporting to focus on past financial performance, but there’s much more to business value than that. There’s a gap between what investors need to know about business plans and long-term strategy and what corporate reports are telling them. Strategy
  7. 7. © International Integrated Reporting Council Filling the gap Past performance (The financials) Plans Report content Business as usual Management plans (3-5 years) Long-term viability Enterprise value Reporting gap Many companies are trying to narrow the gap. Strategy <IR> can help by providing better information on the Board’s view of strategy and operational performance.
  8. 8. © International Integrated Reporting Council What’s missing from corporate reports? 44% do not look beyond short-term initiatives Only 58% identify knowledge and expertise as a key element tell you whether the business is winning or retaining customers Only 17% Strategy Business model PerformanceSource: KPMG Survey of Business Reporting Analysis of larger listed companies
  9. 9. © International Integrated Reporting Council What can an integrated report offer? The customer base Brand and market positioningThe staff base Company know-howThe product base Productivity Wider stakeholder relationships <IR> asks companies to report relevant KPIs on the long-term business drivers most important to them… … rather than reporting on every matter
  10. 10. © International Integrated Reporting Council What could that mean in practice? A telecoms company might provide information on how its core customer base has developed over time A consulting business might show the extent to which it’s maintained the right balance of staff experience and retention A power company might report on capacity headroom in the context of its growth plans If it’s important to the future of the business, <IR> asks companies to report on it
  11. 11. © International Integrated Reporting Council <IR> can help close the reporting gap
  12. 12. © International Integrated Reporting Council 204 pages This is more than enough space to convey all the information that investors need The average length of an annual report is Source: KPMG Survey of Business Reporting Analysis of larger listed companies
  13. 13. © International Integrated Reporting Council© International Integrated Reporting Council Reporting is evolving <IR> can drive it forwards The whole performance story Financial and operational KPIs Factual information relevant to understanding prospects Business-focused Part of the performance story Financial and specific CSR KPIs Factual information about past performance Compliance-focused <IR> provides the push to get to ‘good’ Reporting is already moving beyond the basics
  14. 14. © International Integrated Reporting Council <IR> views traditional corporate reporting through a new lens, making it more investor-relevant
  15. 15. © International Integrated Reporting Council© International Integrated Reporting Council How does this fit with investors calls for change? Investors have affirmed the need for an integrated approach “We are asking that every CEO lay out for shareholders each year a strategic framework for long-term value creation.” Larry Fink, CEO, BlackRock “Efforts by the International Integrated Reporting Council to develop a framework for reporting value creation seem very much in line with what Mr Fink is suggesting.” Sandra Peters, Head of Global Financial Reporting Policy, CFA Institute
  16. 16. © International Integrated Reporting Council Next steps
  17. 17. © International Integrated Reporting Council© International Integrated Reporting Council What can investors do? Raise their expectations of what corporate reporting should be covering Talk to companies about how they can deliver on those expectations Engage with regulators and standard- setters on how reporting requirements can support this
  18. 18. © International Integrated Reporting Council Find out more integratedreporting.org kpmg.com/betterbusinessreporting
  19. 19. Progress through reporting
  20. 20. The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG International’s Trademarks are the sole property of KPMG International and their use here does not imply auditing by KPMG International or any of its member firms.

×