Week 1 Unit 1: Trends in Integrated

Reporting
Trends in Integrated Reporting
Welcome

Week 1: Evolving Organizational Sustainability

 Integrated reporting and company performance
 Creating social and environmental impact
 Responsible investments

Week 2 Digitization Creates Social Impact

 UN Global Goals, other sustainability frameworks
 Digitization and sustainability
 UN Global Goals – Health, Gender Equality, Economic
Growth

Week 3 Digitization and Resource Productivity

 UN Global Goals – Cities, Responsible Consumption,
Climate Action, Partnerships for the Global Goals
 Recap of key course learnings

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Trends in Integrated Reporting
What’s happened since 2014?

From EY’s survey Tomorrow’s Investment

Rules 2.0, the % of respondents who: 2015 2014
Increasing interest by investor community
Consider nonfinancial data
relevant to all sectors 61.5% 33.7%
Evolution towards social, environmental,
and economic impact creation
Use a structured, methodical
evaluation of environmental 37.0% 19.6%
Growing requests by regulatory bodies and social impact information

Consider integrated reports

What’s next? essential or important when 70.9% 61.0%
making investment decisions
Efforts towards standardization and
comparability Believe companies are motivated
to report nonfinancial information 42.1% 29.0%
to demonstrate management of
risk

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Trends in Integrated Reporting
Investors increasingly consider nonfinancial data for investment decisions
Measurable effects on risk and performance are the most important nonfinancial consequences
How important are each of the following nonfinancial issues to you as an investor?
 IR becomes second most important
Business impact of regulation
information source for investors
44.4% 43.1% 11.8% 0.7%
Minimize risk
 Nonfinancial information is 42.2% 44.8% 11.0% 1.9%
Evidence of improved future valuation with business forecasts
accepted as proxy for long-term 28.8% 45.1% 22.9% 3.3%
prosperity Good corporate citizenship – company policy on business ethics
27.3% 55.8% 14.3% 2.6%
Client demand from corporate investors
 Growing focus on reliable 24.7% 48.1% 20.8% 6.5%
information about social and Return on investment in ESG activities
22.9% 41.2% 28.8% 7.2%
environmental risks Company has a policy on assessing nonfinancial factors
16.9% 61.0% 18.8% 3.2%
Personal values
 Governance topics are key 16.9% 49.4% 22.7% 11.0%
Investment codes/advisors – Principals for Responsible Investments
(PRI) Pensions & Investment Research Consultants (EIRC)
11.1% 43.8% 33.3.7 11.8%
%
Essential Important Sometimes important Not important

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Trends in Integrated Reporting
Companies evolve towards social and environmental impact creation

 Connecting nonfinancial and financial

performance raises stakeholder and leadership
awareness
 Initial focus on internal integrated thinking
 Materiality assessment is expanded towards
external impact creation through
– Operations
– Products and services
 Thought leaders evolve from integrated
reporting to integrated steering

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Trends in Integrated Reporting
Growing request by regulatory bodies and stock exchanges

 Mandatory CSR reporting according to GRI G4 for listed

companies in Taiwan

 Singapore Stock Exchange (SGX) implements man-

datory sustainability reporting for financial year 2017

 Canadian Securities regulatory authorities request

transparency on women in leadership

 Malaysia released SRI framework in 2015

 Mandatory disclosure of nonfinancial and diversity

information amends EU Directive 2013/34/EU

 The Bombay Stock Exchange (BSE) establishes CSR

exchange in India

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Trends in Integrated Reporting
Where does reporting go in the future?

 Describe business models in the context of

impact and value creation

 Build and maintain trust through increased

transparency

 Set and communicate extra financial targets

 Leverage SDGs* as reference framework

 Establish more frequent progress reporting

 Reporting will be purely digital, with reliable,

accurate, and dynamic data disclosure

* UN Sustainable Development Goals

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Trends in Integrated Reporting
Challenges to overcome

 Lack of comparability hinders greater

acceptance of integrated reporting

 Alignment activities between various framework

providers* are underway

 Audits!

* Framework providers are:

IIRC = International Integrated reporting Council
SASB = Sustainability Accounting Standards Board
GRI = Global Reporting Initiative

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Trends in Integrated Reporting
Course Structure

Weeks 1 through 3 Video 1 Self test 1

 Several videos and self-tests Week 1
Video 2 Self test 2
Evolving
 One weekly assignment Organizational Video n Self test n
( online test) Sustainability
Weekly assignment
 Online forum
(collaborate, ask questions) Week 2 Digitization Creates

 ½ day of effort each week Social Impact

Week 4 Week 3 Digitization and

 Final exam ( online test) Resource Productivity

Record of Achievement
 Collect at least 50% of the total points available Week 4 Final Exam
in all online tests during the course

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Thank you

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