Juliet Markham | IIRC - Future evolution of the IR and its link with the sustainable finance

The future evolution of integrated reporting and its links with sustainable finance Juliet Markham Head of Communications International Integrated Reporting Council

6 2012 147 © International Integrated Reporting Council

Members of the IIRC Council

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What are we valuing and how?

Embracing the six faces of capitalism © International Integrated Reporting Council

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Source: International Federation of Accountants © International Integrated Reporting Council

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Companies doing <IR> outperform others National University of Singapore and KPMG

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Higher market valuation Nanyang University

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Positively associated with both stock liquidity and firm value Stanford University

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A more dedicated investor profile Harvard Business School

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Better understanding of strategy by investors Black Sun

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70% of investors see integrated reports as essential or important EY

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103,484 words

95,356 words

76,944 words

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Journey so far Global Adoption Phase

Momentum Phase

Level of support and adoption of integrated reporting

Think

Feasibility Phase 2010‐2011

Breakthrough Phase

Creation Phase

2012‐2014

2014‐2018

2018‐2020

2021‐2025 © International Integrated Reporting Council

MOMENTUM PHASE © International Integrated Reporting Council

Key themes •

Catalyse continued progress in the adoption of integrated reporting by advancing integrated thinking as a driver of effective corporate governance

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Mobilise the ‘investor pull’ for integrated reporting

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Promote the objectives of integrated reporting in, and facilitate the alignment of, the corporate reporting system

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Make it easier to adopt integrated reporting

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Foster a policy and regulatory environment that supports moves towards integrated reporting

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Maintain a viable and effective organization. © International Integrated Reporting Council

sustainable finance © International Integrated Reporting Council

Integrated reporting supports the Sustainable Finance Action Plan • • •

Re‐orient capital flows towards sustainable investment, in order to achieve sustainable and inclusive growth Manage financial risks stemming from climate change, natural disasters, environmental degradation and social issues Foster transparency and long‐termism in financial and economic activity.

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Fitness check on the EU framework for public reporting by companies

“The fourth edition of our research amongst the top 800 European listed companies is telling us that two major forces are driving innovation in annual reporting, integration and conciseness.”

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WE LOOK FORWARD TO WORKING WITH YOU TO BUILD

MOMENTUM © International Integrated Reporting Council