@griausconf_joining the dots – an introduction to and trends in integrated reporting - terence...

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Joining The Dots –an introduction to and trends in integrated reporting.Chair: Rebecca Gunn, Manager, Sustainability Reporting, BHP Billiton, Member GRI Stakeholder Council

Hwang Soo Chiat, Associate Professor, School of Accountancy, Singapore Management University Terence Jeyaretnam, Director, Net BalanceNick Ridehalgh, Partner, KPMG; Content Taskforce Member, IIRC Victoria Whitaker, Network Manager, Focal Point Australia, Global Reporting Initiative

Integrated Reporting

Like Great Sex?

Integrated Reporting – The best sex yet?

Integrated Reporting is a bit like great sexEverybody likes the idea and would love to have it

But not many really do..That said, those who are trying it are having a bit

of fun!And sometimes, it’s ending up in a bit of a mess!!

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Net Balance Foundation research

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Integrated Reporting in the ASX50

| The impacts of environmental, social and governance (ESG) issues on an organisation’s bottom line are intuitively understood, e.g: the negative impacts of the Deepwater oil spill on BP’s bottom line

the positive impacts of General Electric’s environmental strategy – ecomagination

| It would therefore appear logical that an organisation’s material non-financial risks and opportunities are fully integrated into business strategy and performance reporting

| However, companies that do so effectively are currently the exception rather than the norm

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The integrated reporting practices of the ASX50

| The review evaluated the extent to which ASX50 companies have integrated the management and reporting of their financial and non-financial risks and opportunities – looked more for ‘integrated thinking’

| It examined six key aspects that companies need to evolve when embarking upon integrated reporting: purpose, values and strategy management approach risk management measuring and managing performance stakeholder engagement reporting format

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Level of Integration amongst the ASX 50

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1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435363738394041424344454647484950510%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Results overview

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Strategy

Management

Risk m

anagement

Perform

anace

Stakeholder engagment

Reporting

0%

20%

40%

60%

80%

100%

Top 10 Performing Companies – Overall Integration

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Amcor GPT Santos Transurban Westpac Oil Search AGL Rio Tinto IAG Orica 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Concluding Comments

| Integrated reporting has to work for you and your stakeholders

| Experimentation over the next few years will give some guidance on what works and what doesn’t work

| Show commitment to sustainability and reporting will become integrated over time

| If successfully implemented, integrated reporting will be a vehicle that drives the integration of sustainability into corporate strategy and day to day decision-making

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Thank You

terence@netbalance.com

0448 588 041

Download report at: www.netbalance.com