paul druckman international integrated reporting councilbig data – peter graf, sap “in the last...
TRANSCRIPT
Paul Druckman
International Integrated Reporting Council
3 31/05/2012
The reporting mismatch An illustration for a typical business:
The consequence:
■ Issues central to long term business value aren’t
getting the attention they deserve
■ Capital markets compensate by pricing in risks that
may well be adequately managed
■ Investors focus on the short term because they can’t
get a clear picture of the long term
strategic growth
development plans
business as usual
Business value
strategic issues
forecasts / plans
past performance
Reporting content
It is not enough to keep adding more
4
0
50
100
150
200
250
300
350
400 Prudential annual report pages - 1850-2008
'Back end' pages
'Front end' pages
Source: Investis research
BIG DATA – Peter Graf, SAP
“in the last 2 years mankind produced
the equivalent amount of data as
in the time mankind has
existed”
Albert Einstein
“we cannot solve our problems with the same thinking we used to create them”
INTEGRATED REPORTING <IR>
The purpose of <IR>
...is to elicit communication about an organization’s strategy, governance, performance and prospects (as distinct from reporting of results). <IR> requires management to take into account all of the factors, and the interconnections between those factors, that affect the organization’s ability (or not) to create and preserve value in the short, medium and long-term.
Professor Mervyn King often borrows words from Victor Hugo noting “Nothing else in the world...is so powerful as an idea whose time has come”. The way in which integrated reporting is capturing the imagination of the world suggests that its time has come.
Discussion paper responses
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Discussion paper responses
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Key points:
• Investor focus
• Business model and value creation
• Definition
• Timeliness
Why should you care about integrated reporting?
1. Communicating vs. Complying
2. Reporting the Intangibles
3. Breaking Down Silos
4. Increasing Transparency
…..even if your organization hasn’t
implemented integrated reporting, you can
demonstrate your leadership capabilities
surrounding this critical issue
Bob Laux, Senior Director of Financial Accounting and Reporting, Microsoft Corporation
Lady Gaga and
<IR>
Source: Jane Diplock
Objectives through 2013
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It is vital that <IR> is perceived as part of the solution to today's corporate reporting challenges and does not fall into the "too hard to solve" box for regulators and governments. The IIRC is not coming to the table with an apology, but with solutions.
Pilot Programme by country
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USA 6
Canada 1
Netherlands 12
UK 10
Italy 6
Spain 5
Germany 3
Denmark 2
Russian Fed. 2
Belgium 1
France 1
Sweden 1
Switzerland 1
South Africa 3
Japan 3
China 1
Sri Lanka 1
India 1
Brazil 2
Chile 1
Australia 3
New Zealand 1
Investor Network
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The IIRC will work with other organizations to progress the topic-specific projects
a) Materiality
b) Value
c) Business model
d) Connectivity
e) The Capitals
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Topic Specific Projects
Examples
database
Core architecture
• Framework Outline
• <IR>framework prototype
• Examples database
• Topic specific reports
Rio+20 Summit
PP Conference 2012
World Bank meetings
• <IR> Draft Framework released for consultation
World Economic Forum
OECD conference
GRI release of G4
PP conference
• <IR>Framework v1.0
G20 Russia Summit
World Economic Forum
OECD conference
PP conference
G20 Australia
2012 1st half 2013
2nd half 2013
1st half 2014
