International Integrated Reporting Framework

INTERNATIONAL
<IR> FRAMEWORK
JANUARY 2021
PREFACE Back Contents Previous Next
About the IIRC

The International Integrated Reporting Council (IIRC) is a global coalition
of regulators, investors, companies, standard setters, the accounting Other resources
profession, academia and NGOs. Together, this coalition shares the view For more on integrated reporting and how
that communication about value creation, preservation or erosion is the the <IR> Framework can be applied, visit
the IIRC’s Frequently Asked Questions and
next step in the evolution of corporate reporting. <IR> Examples Database.
The International <IR> Framework was Further information about the IIRC can be found The IIRC does not accept responsibility for loss caused to any person
who acts, or refrains from acting, in reliance on the material in this
developed to meet this need and provide a on its website www.integratedreporting.org, publication, whether such loss is caused by negligence or otherwise.
foundation for the future. including its: Copyright © January 2021 by the International Integrated Reporting
Council (‘the IIRC’). All rights reserved. Permission is granted to
The International <IR> Framework (January 2021) • Purpose, mission and vision make copies of this work, provided that such copies are for personal
or educational use and are not sold or disseminated and provided
supersedes the International <IR> Framework • Structure and membership that each copy bears the following credit line: “Copyright © January
2021 by the International Integrated Reporting Council (‘the IIRC’).
(December 2013). This latest version applies to • Governance and funding All rights reserved. Used with permission of the IIRC. Contact the
reporting periods commencing 1 January 2022. • Procedures Handbook.
IIRC (info@theiirc.org) for permission to reproduce, store, transmit
or make other uses of this document.” Otherwise, prior written
Earlier application is welcome. permission from the IIRC is required to reproduce, store, transmit
or make other uses of this document, except as permitted by law.
Contact: info@theiirc.org.
www.integratedreporting.org 1
About integrated reporting

The IIRC’s long-term vision is a Integrated reporting aims to: Integrated reporting is consistent with numerous
developments in corporate reporting taking place
world in which integrated thinking • Improve the quality of information available to
within national jurisdictions across the world.
providers of financial capital to enable a more
is embedded within mainstream efficient and productive allocation of capital It is intended that the <IR> Framework, which
provides principles-based guidance for companies
business practice in the public • Promote a more cohesive and efficient and other organizations wishing to prepare an
and private sectors, facilitated approach to corporate reporting that draws on integrated report, will accelerate these individual
different reporting strands and communicates
by integrated reporting as the the full range of factors that materially affect
initiatives and provide impetus to greater
innovation in corporate reporting globally to unlock
corporate reporting norm. The cycle the ability of an organization to create value the benefits of integrated reporting, including the
of integrated reporting and thinking, over time increased efficiency of the reporting process itself.
resulting in efficient and productive • Enhance accountability and stewardship
for the broad base of capitals (financial, It is anticipated that, over time, integrated
capital allocation, will act as a manufactured, intellectual, human, social reporting will become the corporate reporting
norm. No longer will an organization produce
force for financial stability and and relationship, and natural) and promote
numerous, disconnected and static
understanding of their interdependencies
sustainable development. communications. This will be delivered by the
• Support integrated thinking, decision-making process of integrated thinking and the application
and actions that focus on the creation of value of principles such as connectivity of information.
over the short, medium and long term.
Integrated reporting is part of an evolving Integrated thinking is the active consideration by

corporate reporting system. This system is enabled an organization of the relationships between its The more that integrated thinking
by comprehensive frameworks and standards, various operating and functional units and the
addressing measurement and disclosure in capitals that the organization uses or affects. is embedded into an organization’s
relation to all capitals, appropriate regulation Integrated thinking leads to integrated decision- activities, the more naturally will
and effective assurance. Integrated reporting is making and actions that consider the creation, the connectivity of information
consistent with developments in financial and preservation or erosion of value over the short,
flow into management reporting,
other reporting, but an integrated report also medium and long term.
differs from other reports and communications analysis and decision-making.
in a number of ways. In particular, it focuses on Integrated thinking takes into account the It also leads to better integration
connectivity and interdependencies between the
the ability of an organization to create value in the of the information systems that
short, medium and long term, and in so doing it: range of factors that affect an organization’s ability
to create value over time, including: support internal and external
• Has a combined emphasis on conciseness, reporting and communication,
strategic focus and future orientation, the • The capitals that the organization uses or
connectivity of information and the capitals affects, and the critical interdependencies, including preparation of the
and their interdependencies including trade-offs, between them integrated report.
• Emphasizes the importance of integrated • The capacity of the organization to respond
thinking within the organization. to key stakeholders’ legitimate needs and
interests
• How the organization tailors its business
model and strategy to respond to its external
environment and the risks and opportunities
it faces
• The organization’s activities, performance
(financial and other) and outcomes in terms
of the capitals – past, present and future.
CONTENTS Back Contents Previous Next
EXECUTIVE SUMMARY 5 PART 2 – THE INTEGRATED REPORT 24
PART 1 – INTRODUCTION 9 3. Guiding Principles 25
A Strategic focus and future orientation . . . . . . . . . . . . . 25

1. Using the <IR> Framework 10
B Connectivity of information . . . . . . . . . . . . . . . . . . . .26
A Integrated report defined . . . . . . . . . . . . . . . . . . . . . . 10 C Stakeholder relationships . . . . . . . . . . . . . . . . . . . . 28
B Objective of the <IR> Framework . . . . . . . . . . . . . . . . . . 10 D Materiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
C Purpose and users of an integrated report . . . . . . . . . . . . 11 E Conciseness . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
F Reliability and completeness . . . . . . . . . . . . . . . . . . 34
D A principles-based approach . . . . . . . . . . . . . . . . . . . . 11
G Consistency and comparability . . . . . . . . . . . . . . . . . 36
E Form of report and relationship
with other information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4. Content Elements 38
F Application of the <IR> Framework . . . . . . . . . . . . . . . . .13
A Organizational overview and external environment . . . . . .39
G Responsibility for an integrated report . . . . . . . . . . . . . . . 14
B Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2. Fundamental Concepts 15 C Business model . . . . . . . . . . . . . . . . . . . . . . . . . . 41
D Risks and opportunities . . . . . . . . . . . . . . . . . . . . . 44
A Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 E Strategy and resource allocation . . . . . . . . . . . . . . . . 44
B Value creation for the organization and for others . . . . . . . . 16 F Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
C The capitals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 G Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
D Process through which value is created, H Basis of preparation and presentation . . . . . . . . . . . . . 47
preserved or eroded . . . . . . . . . . . . . . . . . . . . . . . . . 21
5. General Reporting Guidance 49
GLOSSARY 53
APPENDIX – SUMMARY OF REQUIREMENTS 55
EXECUTIVE SUMMARY Back Contents Previous Next
Integrated reporting promotes An Integrated Report An integrated report may be prepared in response
to existing compliance requirements, and may
a more cohesive and efficient The primary purpose of an integrated report is
be either a standalone report or be included as a
to explain to providers of financial capital how
approach to corporate reporting an organization creates, preserves or erodes
distinguishable, prominent and accessible part of
another report or communication. It should include
and aims to improve the quality of value over time. An integrated report benefits all
a statement by those charged with governance
information available to providers stakeholders interested in an organization’s ability
accepting responsibility for the report.
to create value over time, including employees,
of financial capital to enable a more customers, suppliers, business partners,
efficient and productive allocation local communities, legislators, regulators and
policy‑makers.
of capital.
The <IR> Framework takes a principles‑based
The IIRC’s long-term vision is a approach. The intent is to strike an appropriate
balance between flexibility and prescription
world in which integrated thinking that recognizes the wide variation in individual
is embedded within mainstream circumstances of different organizations while
business practice in the public enabling a sufficient degree of comparability
across organizations to meet relevant information
and private sectors, facilitated needs. It does not prescribe specific key
by integrated reporting as the performance indicators, measurement methods,
or the disclosure of individual matters, but does
corporate reporting norm. include a small number of requirements that are to
be applied before an integrated report can be said
to be in accordance with the <IR> Framework.
Fundamental Concepts The ability of an organization to create value for

itself enables financial returns to the providers of
An integrated report aims to provide insight about
financial capital. This is interrelated with the value The <IR> Framework
the resources and relationships used and affected
the organization creates for stakeholders and The purpose of the <IR> Framework is to
by an organization – these are collectively referred
society at large through a wide range of activities, establish Guiding Principles and Content
to as “the capitals” in the <IR> Framework. It also
interactions and relationships. When these are Elements that govern the overall content
seeks to explain how the organization interacts
material to the organization’s ability to create value of an integrated report, and to explain the
with the external environment and the capitals
for itself, they are included in the integrated report. fundamental concepts that underpin them.
to create, preserve or erode value over the short,
medium and long term. The <IR> Framework:
• Identifies information to be included
The capitals are stocks of value that are in an integrated report for use in
increased, decreased or transformed through assessing the organization’s ability
the activities and outputs of the organization. to create value; it does not set
They are categorized in the <IR> Framework benchmarks for such things as the
as financial, manufactured, intellectual, human, quality of an organization’s strategy
social and relationship, and natural capital, or the level of its performance
although organizations preparing an integrated
report are not required to adopt this categorization • Is written primarily in the context of
or to structure their report along the lines of private sector, for-profit companies
the capitals. of any size but it can also be applied,
adapted as necessary, by public sector
and not-for-profit organizations.
Guiding Principles
Seven Guiding Principles underpin • Strategic focus and future orientation. An integrated
report should provide insight into the organization’s
• Materiality. An integrated report should disclose
information about matters that substantively affect the
the preparation and presentation strategy, and how it relates to the organization’s ability organization’s ability to create value over the short,
to create value in the short, medium and long term, medium and long term
of an integrated report, informing and to its use of and effects on the capitals
the content of the report and how • Connectivity of information. An integrated report
• Conciseness. An integrated report should be concise
information is presented: should show a holistic picture of the combination, • Reliability and completeness. An integrated report
interrelatedness and dependencies between the should include all material matters, both positive and
factors that affect the organization’s ability to create negative, in a balanced way and without material error
value over time
• Consistency and comparability. The information in an
• Stakeholder relationships. An integrated report integrated report should be presented: (a) on a basis
should provide insight into the nature and quality of the that is consistent over time; and (b) in a way that
organization’s relationships with its key stakeholders, enables comparison with other organizations to the
including how and to what extent the organization extent it is material to the organization’s own ability to
understands, takes into account and responds to their create value over time.
legitimate needs and interests
Content Elements
An integrated report includes • Organizational overview and external environment.
What does the organization do and what are the
• Performance. To what extent has the organization
achieved its strategic objectives for the period
eight Content Elements that are circumstances under which it operates? and what are its outcomes in terms of effects on
the capitals?
fundamentally linked to each other • Governance. How does the organization’s governance
and are not mutually exclusive: structure support its ability to create value in the short,
medium and long term?
• Outlook. What challenges and uncertainties is the
organization likely to encounter in pursuing its strategy,
and what are the potential implications for its business
• Business model. What is the organization’s model and future performance?
business model?
• Basis of presentation. How does the organization
• Risks and opportunities. What are the specific risks determine what matters to include in the integrated
and opportunities that affect the organization’s ability report and how are such matters quantified or
to create value over the short, medium and long term, evaluated?
and how is the organization dealing with them?
• Strategy and resource allocation. Where does the

organization want to go and how does it intend to
get there?
XXX Back Contents Previous Next
PART 1 INTRODUCTION
9
PART 1 INTRODUCTION
Back Contents Previous Next
1. Using the <IR> Framework

1A Integrated report defined 1B Objective of the <IR> Framework 1.5 The <IR> Framework identifies information
to be included in an integrated report
1.1 An integrated report is a concise 1.3 The purpose of the <IR> Framework is to for use in assessing an organization’s
communication about how an organization’s establish Guiding Principles and Content ability to create value; it does not set
strategy, governance, performance and Elements that govern the overall content benchmarks for such things as the
prospects, in the context of its external of an integrated report, and to explain the quality of an organization’s strategy
environment, lead to the creation, fundamental concepts that underpin them. or the level of its performance.
preservation or erosion of value over
the short, medium and long term. 1.4 The <IR> Framework is written primarily 1.6 In the <IR> Framework, reference
in the context of private sector, for-profit to the creation of value:
1.2 An integrated report should be prepared companies of any size but it can also be
in accordance with the <IR> Framework. applied, adapted as necessary, by public • Includes instances when value is
sector and not-for-profit organizations. preserved and when it is eroded
(see paragraph 2.14)
• Relates to value creation over time
(i.e. over the short, medium and
long term).
PART 1 INTRODUCTION
1C Purpose and users of an integrated 1D A principles-based approach 1.10 The <IR> Framework does not
report prescribe specific key performance
1.9 The <IR> Framework is principles-based. indicators, measurement methods or
1.7 The primary purpose of an integrated The intent of the principles-based approach the disclosure of individual matters.
report is to explain to providers of is to strike an appropriate balance Those responsible for the preparation
financial capital how an organization between flexibility and prescription that and presentation of the integrated report
creates, preserves or erodes value recognizes the wide variation in individual therefore need to exercise judgement,
over time. It therefore contains relevant circumstances of different organizations given the specific circumstances of
information, both financial and other. while enabling a sufficient degree of the organization, to determine:
comparability across organizations to
1.8 An integrated report benefits all meet relevant information needs. • Which matters are material
stakeholders interested in an organization’s • How they are disclosed, including the
ability to create value over time, including application of generally accepted
employees, customers, suppliers, measurement and disclosure methods
business partners, local communities, as appropriate. When information in an
legislators, regulators and policy-makers. integrated report is similar to, or based
on other information published by the
organization, it is prepared on the same
basis as, or is easily reconcilable with,
that other information.
PART 1 INTRODUCTION
Quantitative and qualitative information 1E Form of report and relationship with integrated report if that other information
1.11 Quantitative indicators, including key other information does not obscure the concise information
performance indicators and monetized required by the <IR> Framework.
1.12 An integrated report should be a
metrics, and the context in which they designated, identifiable communication. 1.15 An integrated report may be either a
are provided can be very helpful in standalone report or be included as a
explaining how an organization creates, 1.13 An integrated report is intended to be distinguishable, prominent and accessible
preserves or erodes value and how more than a summary of information part of another report or communication.
it uses and affects various capitals. in other communications (e.g. financial For example, it may be included at the
While quantitative indicators are included statements, a sustainability report, front of a report that also includes the
in an integrated report whenever it is analyst calls, or on a website); rather, organization’s financial statements.
practicable and relevant to do so: it makes explicit the connectivity of
• The ability of the organization to information to communicate how value is 1.16 An integrated report can provide an
create value can best be reported on created, preserved or eroded over time. “entry point” to more detailed information
through a combination of quantitative outside the designated communication,
1.14 An integrated report may be prepared to which it may be linked. The form
and qualitative information. (See also in response to existing compliance
paragraph 3.8 regarding the connectivity of link will depend on the form of the
requirements. For example, an organization integrated report (e.g. for a paper-based
of quantitative and qualitative may be required by local law to prepare
information.) report, links may involve attaching
a management commentary or other other information as an appendix; for
• It is not the purpose of an integrated report that provides context for its a web-based report, it may involve
report to quantify or monetize the value financial statements. If that report is hyperlinking to that other information).
of the organization at a point in time, also prepared in accordance with the
the value it creates, preserves or erodes <IR> Framework it can be considered an
over a period, or its uses of or effects on integrated report. If the report is required
all the capitals. (See also paragraph 5.5 to include specified information beyond
for common characteristics of suitable that required by the <IR> Framework,
quantitative indicators.) the report can still be considered an
PART 1 INTRODUCTION
1F Application of the <IR> Framework 1.18 In the case of the unavailability of Guidance
reliable information or specific legal
1.17 Any communication claiming to be 1.19 Text in the <IR> Framework that
prohibitions, an integrated report should:
an integrated report and referencing is not in bold italic type provides
the <IR> Framework should apply • Indicate the nature of the information guidance to assist in applying the
all the requirements identified that has been omitted requirements. It is not necessary for
in bold italic type unless: • Explain the reason why it has been an integrated report to include all
omitted matters referred to in the guidance.
• The unavailability of reliable
information or specific legal • In the case of the unavailability of data,
prohibitions results in an inability to identify the steps being taken to obtain
disclose material information the information and the expected time
• Disclosure of material information frame for doing so.
would cause significant competitive
harm. (See paragraph 3.51.)
PART 1 INTRODUCTION
1G Responsibility for an integrated Where an organization is in the process 1.23 In cases where legal or regulatory
report of adopting the <IR> Framework, it is requirements preclude a statement of
appropriate to identify which requirements responsibility from those charged with
1.20 An integrated report should include have not been applied and the reasons why. governance, an explanation of measures
a statement from those charged taken to ensure the integrity of the
with governance that includes: 1.22 In applying paragraph 1.20, the
integrated report can provide important
organization will take into account its
• An acknowledgement of their insight to users. Accordingly, disclosures
own governance structure, which is
responsibility to ensure the integrity about the process followed to prepare
a function of its jurisdiction, cultural
of the integrated report and present the integrated report are
and legal context, size and ownership
• Their opinion or conclusion about encouraged. Such disclosures can include:
characteristics. For example, some
whether, or the extent to which, the jurisdictions require a single-tier board, • Related systems, procedures and
integrated report is presented in while others require the separation of controls, including key responsibilities
accordance with the <IR> Framework. supervisory and executive/management and activities
Where legal or regulatory requirements functions within a two-tier board. In the • The role of those charged with
preclude a statement of responsibility case of two-tier boards, the statement governance, including relevant
from those charged with governance, this of responsibility is ordinarily provided by committees.
should be clearly stated. the body responsible for overseeing the
strategic direction of the organization. 1.24 Process disclosures are encouraged as a
1.21 The extent to which the integrated report supplement to a statement of responsibility
is presented in accordance with the It is important to consider the intent of
from those charged with governance as this
<IR> Framework is evaluated against paragraph 1.20, which is to promote the
information indicates measures taken to
the requirements identified in bold italic integrity of the integrated report through
ensure the integrity of the integrated report.
type and summarized in the Appendix. the commitment of the body responsible
for overseeing the strategic direction of the
organization.
PART 1 INTRODUCTION
2. Fundamental Concepts
2A Introduction 2.3 An integrated report therefore aims to
2.1 The Fundamental Concepts underpin provide insight about:
2.2 An integrated report explains how an
and reinforce the requirements and organization creates, preserves or • The external environment that affects
guidance in the <IR> Framework. erodes value over time. Value is not an organization
created, preserved or eroded by or • The resources and the relationships
within an organization alone. It is: used and affected by the organization,
• Influenced by the external environment which are referred to collectively in the
<IR> Framework as the capitals and are
• Created through relationships categorized in Section 2C as financial,
with stakeholders manufactured, intellectual, human, social
• Dependent on various resources. and relationship, and natural
• How the organization interacts with the
external environment and the capitals to
create, preserve or erode value over the
short, medium and long term.
PART 1 INTRODUCTION
2B Value creation, preservation or 2.6 The ability of an organization to create value This includes taking account of the extent
erosion for the organization and for itself is linked to the value it creates for to which effects on the capitals have been
for others others. As illustrated in Figure 1, this externalized (i.e. the costs or other effects
happens through a wide range of activities, on capitals that are not owned by the
2.4 Value created, preserved or eroded by an interactions and relationships in addition organization).
organization over time manifests itself in to those, such as sales to customers,
increases, decreases or transformations that are directly associated with changes
of the capitals caused by the organization’s in financial capital. These include, for Figure 1. Value created, preserved or eroded for
business activities and outputs. example, the effects of the organization’s the organization and for others
That value has two interrelated aspects – business activities and outputs on
value created, preserved or eroded for: customer satisfaction, suppliers’
• The organization itself, which affects willingness to trade with the organization
financial returns to the providers of and the terms and conditions upon which
VALUE CREATED,
financial capital they do so, the initiatives that business PRESERVED OR
• Others (i.e. stakeholders and society partners agree to undertake with the ERODED FOR THE
at large). organization, the organization’s ORGANIZATION
reputation, conditions imposed on the INT

ER
IES
2.5 Providers of financial capital are interested organization’s social licence to operate, AC
TI VIT AC
TIO
NS
in the value an organization creates
RELATIONSHIPS
and the imposition of supply chain
for itself. They are also interested in conditions or legal requirements.
the value an organization creates for
others when it affects the ability of the 2.7 When these interactions, activities,
organization to create value for itself, and relationships are material to VALUE CREATED, PRESERVED
OR ERODED FOR OTHERS
or relates to a stated objective of the the organization’s ability to create
organization (e.g. an explicit social value for itself, they are included
purpose) that affects their assessments. in the integrated report.
PART 1 INTRODUCTION
2.8 Externalities may be positive or negative 2.9 Because value is created over different
(i.e. they may result in a net increase or time horizons and for different stakeholders
decrease to the value embodied in the through different capitals, it is unlikely
capitals). Externalities may ultimately to be created through the maximization
increase or decrease value created for of one capital while disregarding the
the organization; therefore, providers of others. For example, the maximization
financial capital need information about of financial capital (e.g. profit) at the
material externalities to assess their effects expense of human capital (e.g. through
and allocate resources accordingly. inappropriate human resource policies
and practices) is unlikely to maximize value
for the organization in the longer term.
PART 1 INTRODUCTION
2C The capitals 2.12 The overall stock of capitals is not fixed over 2.14 Although organizations aim to create
time. There is a constant flow between and value overall, this can involve the
The stock and flow of capitals within the capitals as they are increased, erosion of value stored in some capitals,
2.10 All organizations depend on various decreased or transformed. For example, resulting in a net decrease to the overall
forms of capital for their success. In the when an organization improves its human stock of capitals (i.e. value is eroded).
<IR> Framework, the capitals comprise capital through employee training, the In many cases, whether the net effect
financial, manufactured, intellectual, related training costs reduce its financial is an increase or decrease (or neither,
human, social and relationship, and capital. The effect is that financial capital i.e. when value is preserved) will depend
natural, although as discussed in has been transformed into human capital. on the perspective chosen; as in the
paragraphs 2.17–2.19, organizations above example, employees and employers
preparing an integrated report are not Although this example is simple and might value training differently.
required to adopt this categorization. presented only from the organization’s
perspective1, it demonstrates the Categories and descriptions of the capitals
2.11 The capitals are stocks of value that are continuous interaction and transformation
2.15 For the purpose of the <IR> Framework, the
increased, decreased or transformed between the capitals, albeit with varying
capitals are categorized and described
through the activities and outputs of the rates and outcomes.
on the following page.
organization. For example, an organization’s
2.13 Many activities cause increases,
financial capital is increased when
decreases or transformations that are far
it makes a profit, and the quality of
more complex than the above example
its human capital is improved when
and involve a broader mix of capitals
employees become better trained.
or of components within a capital (e.g.
the use of water to grow crops that are
fed to farm animals, all of which are 1 Other perspectives include the increase to the trainer’s
components of natural capital). financial capital due to the payment received from the
employer, and the increase to social capital that may
occur if employees use newly acquired skills to contribute
to community organizations. (See also paragraph 5.8
regarding complexity, interdependencies and trade-offs.)
PART 1 INTRODUCTION
• Financial capital – The pool of funds that is: • Intellectual capital – Organizational, individual and collective well-being.
‒ Available to an organization for use in the knowledge-based intangibles, including: Social and relationship capital includes:
production of goods or the provision of ‒ Intellectual property, such as patents, ‒ Shared norms, and common values and
services copyrights, software, rights and licences behaviours
‒ Obtained through financing, such as debt, ‒ “Organizational capital” such as tacit ‒ Key stakeholder relationships, and the
equity or grants, or generated through knowledge, systems, procedures and trust and willingness to engage that
operations or investments. protocols. an organization has developed and
• Manufactured capital – Manufactured • Human capital – People’s competencies, strives to build and protect with external
physical objects (as distinct from natural capabilities and experience, and their stakeholders
physical objects) that are available to an motivations to innovate, including their: ‒ Intangibles associated with the brand
organization for use in the production of goods ‒ Alignment with and support for an and reputation that an organization has
or the provision of services, including: organization’s governance framework, risk developed
‒ Buildings management approach, and ethical values ‒ An organization’s social licence to operate.
‒ Equipment ‒ Ability to understand, develop and • Natural capital – All renewable and
‒ Infrastructure (such as roads, ports, implement an organization’s strategy non‑renewable environmental resources and
bridges, and waste and water treatment ‒ Loyalties and motivations for improving processes that provide goods or services that
plants). processes, goods and services, including support the past, current or future prosperity
their ability to lead, manage and of an organization. It includes:
Manufactured capital is often created by collaborate.
other organizations, but includes assets ‒ Air, water, land, minerals and forests
manufactured by the reporting organization for • Social and relationship capital – ‒ Biodiversity and eco‑system health.
sale or when they are retained for its own use. The institutions and the relationships
within and between communities, groups
of stakeholders and other networks, and
the ability to share information to enhance
PART 1 INTRODUCTION
2.16 Not all capitals are equally relevant or Role of the capitals in the <IR> Framework 2.18 Organizations may categorize the capitals
applicable to all organizations. While most 2.17 The <IR> Framework does not require an differently. For example, relationships with
organizations interact with all capitals integrated report to adopt the categories external stakeholders and the intangibles
to some extent, these interactions identified above or to be structured along associated with brand and reputation
might be relatively minor or so indirect the lines of the capitals. Rather, the (both identified as part of social and
that they are not sufficiently important primary reasons for including the capitals relationship capital in paragraph 2.15),
to include in the integrated report. in the <IR> Framework are to serve: might be considered by some organizations
to be separate capitals, part of other
• As part of the theoretical underpinning capitals or cutting across a number
for the concept of value creation, of individual capitals. Similarly, some
preservation or erosion (see Section 2B) organizations define intellectual capital as
comprising what they identify as human,
• As a guideline for ensuring organizations
“structural” and “relational” capitals.
consider all the forms of capital they use
or affect. 2.19 Regardless of how an organization
categorizes the capitals for its own
purposes, the categories identified in
paragraph 2.15 are to be used as a
guideline to ensure the organization does
not overlook a capital that it uses or affects.
PART 1 INTRODUCTION
2D Process through which value is 2.22 Those charged with governance are 2.24 Business activities include the planning,
created, preserved or eroded responsible for creating an appropriate design and manufacture of products or
oversight structure to support the ability the deployment of specialized skills and
2.20 As noted in paragraph 2.14, although of the organization to create value. knowledge in the provision of services.
organizations aim to create value, the (See Content Element 4B Governance.) Encouraging a culture of innovation is
overall stock of capitals can also either often a key business activity in terms of
undergo a net decrease or experience no 2.23 At the core of the organization is its generating new products and services that
net change. In such cases, value is eroded business model, which draws on various anticipate customer demand, introducing
or preserved. The process through which capitals as inputs and, through its efficiencies and better use of technology,
value is created, preserved or eroded business activities, converts them to substituting inputs to minimize adverse
is depicted in Figure 2. It is explained outputs (products, services, by-products social or environmental effects, and
briefly in the following paragraphs, which and waste). The organization’s business finding alternative uses for outputs.
also identify how the components of activities and outputs lead to outcomes
Figure 2 (emphasized in bold text) align in terms of effects on the capitals. The 2.25 Outcomes are the internal and external
with the Content Elements in Chapter 4. capacity of the business model to adapt consequences (positive and negative) for
to changes (e.g. in the availability, quality the capitals as a result of an organization’s
2.21 The external environment, including and affordability of inputs) can affect business activities and outputs.
economic conditions, technological the organization’s longer‑term viability.
change, societal issues and environmental (See Content Element 4C Business model.) 2.26 Continuous monitoring and analysis of
challenges, sets the context within which the external environment in the context of
the organization operates. The purpose, the organization’s purpose, mission and
mission and vision encompass the whole vision identifies risks and opportunities
organization, identifying its intention in relevant to the organization, its strategy
clear, concise terms. (See Content and its business model. (See Content
Element 4A Organizational overview Element 4D Risks and opportunities.)
and external environment.)
PART 1 INTRODUCTION
Figure 2. Process through which value is created, preserved or eroded
EXTERNAL ENVIRONMENT
PURPOSE, MISSION, VISION
GOVERNANCE
FINANCIAL FINANCIAL
RISKS AND STRATEGY AND
OPPORTUNITIES RESOURCE ALLOCATION
MANUFACTURED MANUFACTURED
BUSINESS MODEL
INTELLECTUAL BUSINESS INTELLECTUAL

ACTIVITIES
OUTCOMES
(POSITIVE AND
INPUTS NEGATIVE OVER THE
SHORT, MEDIUM
AND LONG TERM)
OUTPUTS
HUMAN HUMAN
SOCIAL AND SOCIAL AND

PERFORMANCE OUTLOOK
RELATIONSHIP RELATIONSHIP
NATURAL NATURAL
VALUE CREATION, PRESERVATION OR EROSION OVER TIME
PART 1 INTRODUCTION
2.27 The organization’s strategy identifies how

it intends to mitigate or manage risks and
maximize opportunities. It sets out strategic
objectives and strategies to achieve them,
which are implemented through resource
allocation plans. (See Content Element
4E Strategy and resource allocation.)
2.28 The organization needs information about

its performance, which involves setting up
measurement and monitoring systems to
provide information for decision-making.
(See Content Element 4F Performance.)
2.29 The value creation, preservation or erosion

process is not static; regular review of
each component and its interactions with
other components, and a focus on the
organization’s outlook, lead to revision and
refinement to improve all the components.
(See Content Element 4G Outlook.)
PART 2 THE INTEGRATED REPORT
24
3. Guiding Principles
A Strategic focus and future orientation 3A Strategic focus and future
3.1 The seven Guiding Principles
B Connectivity of information
orientation
underpin the preparation and 3.3 An integrated report should provide
presentation of an integrated report, C Stakeholder relationships insight into the organization’s strategy,
informing the content of the report and how it relates to the organization’s
and how information is presented. D Materiality
ability to create value in the short,
E Conciseness medium and long term and to its use
of and effects on the capitals.
F Reliability and completeness
3.4 Applying this Guiding Principle is
G Consistency and comparability not limited to the Content Elements
4E Strategy and resource allocation
and 4G Outlook. It guides the selection
and presentation of other content,
3.2 These Guiding Principles are applied
and may include, for example:
individually and collectively for the
purpose of preparing and presenting • Highlighting significant risks,
an integrated report; accordingly, opportunities and dependencies flowing
judgement is needed in applying them, from the organization’s market position
particularly when there is an apparent and business model
tension between them (e.g. between
conciseness and completeness).
• The views of those charged with 3B Connectivity of information 3.8 The key forms of connectivity of information
governance about: include the connectivity between:
3.6 An integrated report should
‒ The relationship between past and show a holistic picture of the • The Content Elements. The integrated
future performance, and the factors combination, interrelatedness and report connects the Content Elements
that can change that relationship dependencies between the factors into a total picture that reflects the
‒ How the organization balances short-, that affect the organization’s ability dynamic and systemic interactions of
medium- and long-term interests to create value over time. the organization’s activities as a whole.
For example:
‒ How the organization has learned from 3.7 The more that integrated thinking is
past experiences in determining future ‒ An analysis of existing resource
embedded into an organization’s activities, allocation, and how the organization
strategic directions. the more naturally will the connectivity will combine resources or make further
of information flow into management investment to achieve its targeted
3.5 Adopting a strategic focus and future
reporting, analysis and decision-making, performance
orientation (see also paragraphs
and subsequently into the integrated report.
3.52‑3.53) includes clearly articulating ‒ Information about how the
how the continued availability, quality organization’s strategy is tailored
and affordability of significant capitals when, for instance, new risks and
contribute to the organization’s ability opportunities are identified or past
to achieve its strategic objectives performance is not as expected
in the future and create value.
‒ Linking the organization’s strategy • Financial and other information. • Management information, board
and business model with changes For example, the implications for: information and information reported
in its external environment, such as ‒ Expected revenue growth or market externally. For example, as noted in
increases or decreases in the pace share of research and development paragraph 5.5, it is important for the
of technological change, evolving policies, technology/know-how or quantitative indicators in an integrated
societal expectations, and resource investment in human resources report to be consistent with the indicators
shortages as planetary limits are used internally by management and
approached. ‒ Cost reduction or new business those charged with governance.
opportunities of environmental
• The past, present and future. An policies, energy efficiency, • Information in the integrated report,
analysis by the organization of its cooperation with local communities or information in the organization’s other
activities in the past-to-present period technologies to tackle social issues communications, and information from
can provide useful information to assess ‒ Revenue and profit growth of other sources. This recognizes that all
the plausibility of what has been reported long‑term customer relationships, communications from the organization
concerning the present-to-future period. customer satisfaction or reputation. need to be consistent, and that
The explanation of the past‑to‑present information the organization provides is
period can also be useful in analyzing • Quantitative and qualitative not read in isolation but combined with
current capabilities and the quality of information. Both qualitative and information from other sources when
management. quantitative information are necessary for making assessments.
an integrated report to properly represent
• The capitals. This includes the the organization’s ability to create value
interdependencies and trade-offs as each provides context for the other.
between the capitals, and how Including key performance indicators as
changes in their availability, quality and part of a narrative explanation can be an
affordability affect the ability of the effective way to connect quantitative and
organization to create value. qualitative information.
3.9 The connectivity of information and 3C Stakeholder relationships 3.12 Stakeholders provide useful insights
the overall usefulness of an integrated about matters that are important to
report is enhanced when it is logically 3.10 An integrated report should provide them, including economic, environmental
structured, well presented, written in clear, insight into the nature and quality of the and social issues that also affect
understandable and jargon-free language, organization’s relationships with its key the ability of the organization to
and includes effective navigation devices, stakeholders, including how and to what create value. These insights can
such as clearly delineated (but linked) extent the organization understands, assist the organization to:
sections and cross-referencing. In this takes into account and responds to
context, information and communication their legitimate needs and interests. • Understand how stakeholders
technology can be used to improve the perceive value
3.11 This Guiding Principle reflects the
ability to search, access, combine, connect, importance of relationships with key • Identify trends that might not yet have
customize, re-use or analyze information. stakeholders because, as noted in come to general attention, but which
paragraph 2.2, value is not created by are rising in significance
or within an organization alone, but is • Identify material matters, including risks
created through relationships with others. and opportunities
It does not mean that an integrated
• Develop and evaluate strategy
report should attempt to satisfy the
information needs of all stakeholders. • Manage risks
• Implement activities, including
strategic and accountable responses
to material matters.
3.13 Engagement with stakeholders occurs 3.15 Accountability is closely associated 3D Materiality
regularly in the ordinary course of business with the concept of stewardship and
(e.g. day-to-day liaison with customers and the responsibility of an organization to 3.17 An integrated report should disclose
suppliers or broader ongoing engagement care for, or use responsibly, the capitals information about matters that
as part of strategic planning and risk that its activities and outputs affect. substantively affect the organization’s
assessment). It might also be undertaken When the capitals are owned by the ability to create value over the
for a particular purpose (e.g. engagement organization, a stewardship responsibility short, medium and long term.
with a local community when planning a is imposed on management and those
The materiality determination process
factory extension). The more integrated charged with governance via their legal
thinking is embedded in the business, the responsibilities to the organization. 3.18 The materiality determination process for
more likely it is that a fuller consideration the purpose of preparing and presenting
of key stakeholders’ legitimate needs 3.16 When the capitals are owned by an integrated report involves:
and interests is incorporated as an others or not owned at all, stewardship
responsibilities may be imposed by law • Identifying relevant matters based on
ordinary part of conducting business.
or regulation (e.g. through a contract their ability to affect value creation as
3.14 An integrated report enhances transparency with the owners, or through labour laws discussed in Section 2B (see paragraphs
and accountability, which are essential in or environmental protection regulations). 3.21–3.23)
building trust and resilience, by disclosing When there is no legal stewardship • Evaluating the importance of relevant
how key stakeholders’ legitimate needs responsibility, the organization may matters in terms of their known or
and interests are understood, taken have an ethical responsibility to accept, potential effect on value creation
into account and responded to through or choose to accept stewardship (see paragraphs 3.24–3.27)
decisions, actions and performance, responsibilities and be guided in doing
• Prioritizing the matters based on their
as well as ongoing communication. so by stakeholder expectations.
relative importance (see paragraph 3.28)
• Determining the information to
disclose about material matters
(see paragraph 3.29).
3.19 This process applies to both positive Identifying relevant matters Evaluating importance
and negative matters, including risks 3.21 Relevant matters are those that 3.24 Not all relevant matters will be considered
and opportunities and favourable and have, or may have, an effect on the material. To be included in an integrated
unfavourable performance or prospects. organization’s ability to create value. report, a matter also needs to be
It also applies to both financial and other This is determined by considering their sufficiently important in terms of its
information. Such matters may have effect on the organization’s strategy, known or potential effect on value
direct implications for the organization governance, performance or prospects. creation. This involves evaluating the
itself or may affect the capitals magnitude of the matter’s effect and,
owned by or available to others. 3.22 Ordinarily, matters related to value if it is uncertain whether the matter will
creation, preservation or erosion that occur, its likelihood of occurrence.
3.20 To be most effective, the materiality are discussed at meetings of those
determination process is integrated into charged with governance are considered 3.25 Magnitude is evaluated by considering
the organization’s management processes relevant. An understanding of the whether the matter’s effect on strategy,
and includes regular engagement with perspectives of key stakeholders is governance, performance or prospects
providers of financial capital and others critical to identifying relevant matters. is such that it has the potential to
to ensure the integrated report meets its substantively influence value creation,
primary purpose as noted in paragraph 1.7. 3.23 Matters that might be relatively easy to preservation or erosion over time.
address in the short term but which may, This requires judgement and will depend
if left unchecked, become more damaging on the nature of the matter in question.
or difficult to address in the medium Matters may be considered material
or long term need to be included in the either individually or in the aggregate.
population of relevant matters. Matters
are not excluded on the basis that the 3.26 Evaluating the magnitude of a matter’s
organization does not wish to address them effect does not imply that the effect
or does not know how to deal with them. needs to be quantified. Depending on
the nature of the matter, a qualitative
evaluation might be more appropriate.
3.27 In evaluating the magnitude of effect, Determining information to disclose 3.31 The financial reporting entity is central
the organization considers: 3.29 Judgement is applied in determining the to the reporting boundary because:
• Quantitative and qualitative factors information to disclose about material • It is the financial reporting entity in which
matters. This requires consideration providers of financial capital invest and
• Financial, operational, strategic, from different perspectives, both therefore need information about
reputational and regulatory perspectives internal and external, and is assisted • Using the financial reporting entity
• Area of the effect, be it internal by regular engagement with providers enables the information in the financial
or external of financial capital and others to ensure statements to serve as an anchor or
the integrated report meets its primary point of reference to which the other
• Time frame.
purpose as noted in paragraph 1.7. information in an integrated report can
Prioritizing important matters (See also paragraphs 5.2–5.4.) be related.
3.28 Once the population of important matters Reporting boundary 3.32 Figure 3 depicts the entities/
is identified, they are prioritized based
3.30 Key to the materiality determination stakeholders that are considered in
on their magnitude. This helps to focus
process is the concept of the reporting determining the reporting boundary.
on the most important matters when
boundary. Determining the boundary for
determining how they are reported.
an integrated report has two aspects:
• The financial reporting entity
(i.e. the boundary used for financial
reporting purposes)
• Risks, opportunities and outcomes
attributable to or associated with other
entities/stakeholders beyond the
financial reporting entity that have a
significant effect on the ability of the
financial reporting entity to create value.
Figure 3. Entities/stakeholders considered in determining the reporting boundary
REPORTING BOUNDARY FOR THE INTEGRATED REPORT

(RISKS , OPPORTUNITIES AND OUTCOMES)
FINANCIAL REPORTING ENTITY

(CONTROL AND SIGNIFICANT INFLUENCE)
PARENT
JOINT ARRANGEMENTS SUBSIDIARIES INVESTMENTS (OTHER FORMS)
EMPLOYEES CUSTOMERS SUPPLIERS BUSINESS COMMUNITIES OTHERS

PARTNERS
Financial reporting entity 3.35 The purpose of looking beyond the financial 3E Conciseness
3.33 The financial reporting entity identifies reporting boundary is to identify risks,
opportunities and outcomes that materially 3.36 An integrated report should be concise.
which subsidiaries’, joint ventures’ and
associates’ transactions and related affect the organization’s ability to create 3.37 An integrated report includes sufficient
events are included in the organization’s value. The entities/stakeholders within context to understand the organization’s
financial report. The financial reporting this portion of the reporting boundary strategy, governance, performance
entity is determined according to are not related to the financial reporting and prospects without being burdened
applicable financial reporting standards entity by virtue of control or significant with less relevant information.
which revolve around the concepts influence, but rather by the nature and
of control or significant influence. proximity of the risks, opportunities and 3.38 The organization seeks a balance
outcomes. For example, if aspects of the in its integrated report between
Risks, opportunities and outcomes labour practices in the organization’s conciseness and the other Guiding
industry are material to the ability of the Principles, in particular completeness
3.34 The second aspect of determining the
organization to create value, then disclosure and comparability. In achieving
reporting boundary is to identify those risks,
in the integrated report might include conciseness, an integrated report:
opportunities and outcomes attributable
information about those aspects as they
to or associated with entities/stakeholders • Applies the materiality determination
relate to suppliers’ labour practices.
beyond the financial reporting entity that process described in Section 3D
have a significant effect on the ability of the • Follows a logical structure and includes
financial reporting entity to create value. internal cross-references as appropriate
These other entities/stakeholders might be to limit repetition
“related parties” for the purpose of financial
reporting, but will ordinarily extend further.
• May link to more detailed information, 3F Reliability and completeness 3.41 Those charged with governance have
information that does not change ultimate responsibility for how the
frequently (e.g. a listing of subsidiaries), 3.39 An integrated report should include organization’s strategy, governance,
or external sources (e.g. assumptions all material matters, both positive performance and prospects lead to value
about future economic conditions on a and negative, in a balanced way creation over time. They are responsible
government website) and without material error. for ensuring that there is effective
• Expresses concepts clearly and in as few leadership and decision-making regarding
Reliability
words as possible the preparation and presentation of
3.40 The reliability of information is affected an integrated report, including the
• Favours plain language over the use of by its balance and freedom from identification and oversight of the
jargon or highly technical terminology material error. Reliability (which is often employees actively involved in the process.
• Avoids highly generic disclosures, often referred to as faithful representation)
referred to as “boilerplate”, that are not is enhanced by mechanisms such as 3.42 Maintaining an audit trail when preparing an
specific to the organization. robust internal control and reporting integrated report helps senior management
systems, stakeholder engagement, and those charged with governance
internal audit or similar functions, and review the report and exercise judgement
independent, external assurance. in deciding whether information is
sufficiently reliable to be included. It might
be appropriate in some cases (e.g. with
respect to future-oriented information)
for an integrated report to describe the
mechanisms employed to ensure reliability.
3.43 Paragraph 1.18 identifies relevant

disclosures when material
information is omitted because of
the unavailability of reliable data.
Balance Freedom from material error 3.48 Determining completeness includes

3.44 A balanced integrated report has no bias in 3.46 Freedom from material error does not considering the extent of information
the selection or presentation of information. imply that the information is perfectly disclosed and its level of specificity
Information in the report is not slanted, accurate in all respects. It does imply that: or preciseness. This might involve
weighted, emphasized, de-emphasized, considering potential concerns regarding
• Processes and controls have been cost/benefit, competitive advantage
combined, offset or otherwise manipulated applied to reduce to an acceptably low
to change the probability that it will be and future-oriented information,
level the risk that reported information each of which is discussed below.
received either favourably or unfavourably. contains a material misstatement
3.45 Important methods to ensure balance • When information includes estimates, Cost/benefit
include: this is clearly communicated, and the 3.49 Information included in an integrated
• Selection of presentation formats that nature and limitations of the estimation report is, by nature, central to managing
are not likely to unduly or inappropriately process are explained. the business. Accordingly, if a matter
influence assessments made on the is important to managing the business,
Completeness cost should not be a factor in failing to
basis of the integrated report
3.47 A complete integrated report includes obtain critical information to appropriately
• Giving equal consideration to both assess and manage the matter.
all material information, both positive
increases and decreases in the capitals,
and negative. To help ensure that
both strengths and weaknesses of the 3.50 An organization may evaluate cost and
all material information has been
organization, both positive and negative benefits when determining the extent,
identified, consideration is given to what
performance, etc. level of specificity, and preciseness
organizations in the same industry are
• Reporting against previously reported reporting on because certain matters of information necessary for an
targets, forecasts, projections and within an industry are likely to be material integrated report to meet its primary
expectations. to all organizations in that industry. purpose, but may not refrain entirely
from making any disclosure about a
material matter on the basis of cost.
Competitive advantage Future-oriented information 3G Consistency and comparability

3.51 In including information about material 3.52 Legal or regulatory requirements may apply 3.54 The information in an integrated
matters dealing with competitive advantage to certain future-oriented information in report should be presented:
(e.g. critical strategies), an organization some jurisdictions, covering for example:
considers how to describe the essence • On a basis that is consistent over time
• The types of disclosures that may
of the matter without identifying specific be made • In a way that enables comparison with
information that might cause a significant other organizations to the extent it
loss of competitive advantage. Accordingly, • Whether cautionary statements may is material to the organization’s own
the organization considers what advantage be required or permitted to highlight ability to create value over time.
a competitor could actually gain from uncertainty regarding achievability
information in an integrated report, and • An obligation to publicly update Consistency
balances this against the need for the such information. 3.55 Reporting policies are followed consistently
integrated report to achieve its primary from one period to the next unless a
purpose as noted in paragraph 1.7. 3.53 Future-oriented information is by nature change is needed to improve the quality
more uncertain than historical information. of information reported. This includes
Uncertainty is not, however, a reason reporting the same key performance
in itself to exclude such information. indicators if they continue to be material
(See also paragraph 5.2 regarding across reporting periods. When a
disclosures about uncertainty.) significant change has been made, the
organization explains the reason for the
change, describing (and quantifying if
practicable and material) its effect.
Comparability • Presenting information in the form of

3.56 The specific information in an integrated ratios (e.g. research expenditure as a
report will, necessarily, vary from one percentage of sales, or carbon intensity
organization to another because each measures such as emissions per unit
organization creates value in its own of output)
unique way. Nonetheless, addressing • Reporting quantitative indicators
the questions relating to the Content commonly used by other organizations
Elements, which apply to all organizations, with similar activities, particularly when
helps ensure a suitable level of standardized definitions are stipulated
comparability between organizations. by an independent organization (e.g. an
industry body). Such indicators are not,
3.57 Other powerful tools for enhancing however, included in an integrated report
comparability (in both an integrated unless they are relevant to the individual
report itself and any detailed information circumstances of, and are used internally
that it links to) can include: by, the organization.
• Using benchmark data, such as industry
or regional benchmarks
4. Content Elements
A Organizational overview and 4.2 The Content Elements are fundamentally
4.1 An integrated report includes eight external environment linked to each other and are not mutually
Content Elements, posed in the exclusive. The order of the Content Elements
B Governance as listed here is not the only way they could
form of questions to be answered.
be sequenced; accordingly, the Content
C Business model
In doing so, it takes into account Elements are not intended to serve as a
the general reporting guidance in D Risks and opportunities standard structure for an integrated report
Chapter 5. with information about them appearing in
E Strategy and resource allocation a set sequence or as isolated, standalone
sections. Rather, information in an
F Performance integrated report is presented in a way that
G Outlook makes the connections between the Content
Elements apparent. (See Section 3B.)
H Basis of preparation and presentation
4.3 The content of an organization’s integrated
report will depend on the individual
circumstances of the organization.
The Content Elements are therefore stated
in the form of questions rather than as
checklists of specific disclosures. Accordingly,
judgement needs to be exercised in
applying the Guiding Principles to determine
what information is reported, as well as
how it is reported, as discussed below.
4A Organizational overview and number of employees, revenue and 4.7 These factors occur in the context
external environment number of countries in which the of the particular organization, in the
organization operates), highlighting, context of its industry or region, and in
4.4 An integrated report should answer the in particular, significant changes from the wider social or planetary context.
question: What does the organization prior periods They may include, for example:
do and what are the circumstances
under which it operates? • Significant factors affecting the • The legitimate needs and interests
external environment and the of key stakeholders
4.5 An integrated report identifies the organization’s response. • Macro and micro economic conditions,
organization’s purpose, mission and such as economic stability, globalization,
vision, and provides essential context External environment
and industry trends
by identifying matters such as: 4.6 Significant factors affecting the external
• Market forces, such as the relative
• The organization’s: environment include aspects of the
strengths and weaknesses of
legal, commercial, social, environmental
‒ Culture, ethics and values competitors and customer demand
and political context that affect the
‒ Ownership and operating structure organization’s ability to create value in • The speed and effect of
‒ Principal activities and markets the short, medium or long term. They can technological change
affect the organization directly or indirectly • Societal issues, such as population and
‒ Competitive landscape and market (e.g. by influencing the availability,
positioning (considering factors such demographic changes, human rights,
quality and affordability of a capital health, poverty, collective values and
as the threat of new competition that the organization uses or affects).
and substitute products or services, educational systems
the bargaining power of customers
and suppliers, and the intensity of
competitive rivalry)
‒ Position within the value chain.
• Key quantitative information (e.g. the
• Environmental challenges, such as 4B Governance • Particular actions those charged

climate change, the loss of ecosystems, with governance have taken to influence
and resource shortages as planetary 4.8 An integrated report should and monitor the strategic direction
limits are approached answer the question: How does the of the organization and its approach to
organization’s governance structure risk management
• The legislative and regulatory support its ability to create value in
environment in which the the short, medium and long term? • How the organization’s culture, ethics
organization operates and values are reflected in its use of
• The political environment in countries 4.9 An integrated report provides insight and effects on the capitals, including its
where the organization operates and about how such matters as the following relationships with key stakeholders
other countries that may affect the are linked to its ability to create value: • Whether the organization is implementing
ability of the organization to implement • The organization’s leadership structure, governance practices that exceed legal
its strategy. including the skills and diversity requirements
(e.g. range of backgrounds, gender, • The responsibility those charged with
competence and experience) of those governance take for promoting and
charged with governance and whether enabling innovation
regulatory requirements influence the
design of the governance structure • How remuneration and incentives are
linked to value creation in the short,
• Specific processes used to make medium and long term, including how
strategic decisions and to establish and they are linked to the organization’s use
monitor the culture of the organization, of and effects on the capitals.
including its attitude to risk and
mechanisms for addressing integrity and
ethical issues
4C Business model 4.13 Features that can enhance the Inputs

effectiveness and readability of the 4.14 An integrated report shows how key
4.10 An integrated report should description of the business model include:
answer the question: What is the inputs relate to the capitals on which
organization’s business model? • Explicit identification of the key elements the organization depends, or that
of the business model provide a source of differentiation for
4.11 An organization’s business model is its • A simple diagram highlighting key the organization, to the extent they are
system of transforming inputs, through elements, supported by a clear material to understanding the robustness
its business activities, into outputs explanation of the relevance of those and resilience of the business model.
and outcomes that aims to fulfil the elements to the organization
organization’s strategic purposes and 4.15 An integrated report does not attempt to
create value over the short, medium • Narrative flow that is logical provide an exhaustive list of all inputs.
and long term. given the particular circumstances Rather, the focus is on those that have a
of the organization material bearing on the ability to create
4.12 An integrated report describes the • Identification of critical stakeholder and value in the short, medium and long
business model, including key: other (e.g. raw material) dependencies term, whether or not the capitals from
• Inputs (see paragraphs 4.14–4.15) and important factors affecting the which they are derived are owned by
external environment the organization. It may also include a
• Business activities (see paragraphs discussion of the nature and magnitude of
4.16–4.17) • Connection to information covered by the significant trade-offs that influence the
• Outputs (see paragraph 4.18) other Content Elements, such as strategy, selection of inputs. (See paragraph 5.8.)
risks and opportunities, and performance
• Outcomes (see paragraphs 4.19–4.20). (including key performance indicators
and financial considerations, such as
cost containment and revenues).
Business activities Outputs • Both positive outcomes (i.e. those that

4.16 An integrated report describes key 4.18 An integrated report identifies an result in a net increase in the capitals
business activities. This can include: organization’s key products and services. and thereby create value) and negative
There might be other outputs, such outcomes (i.e. those that result in a net
• How the organization differentiates itself as by-products and waste (including decrease in the capitals and thereby
in the market place (e.g. through product emissions), that need to be discussed erode value).
differentiation, market segmentation, within the business model disclosure
delivery channels and marketing) depending on their materiality.
• The extent to which the business model
relies on revenue generation after Outcomes
the initial point of sale (e.g. extended 4.19 An integrated report describes key
warranty arrangements or network outcomes. Outcomes are the internal
usage charges) and external consequences (positive
• How the organization approaches the and negative) for the capitals as a
need to innovate result of an organization’s business
activities and outputs. The description
• How the business model has been of outcomes includes:
designed to adapt to change.
• Both internal outcomes (e.g. employee
4.17 When material, an integrated report morale, organizational reputation,
discusses the contribution made revenue and cash flows) and external
to the organization’s long-term outcomes (e.g. customer satisfaction, tax
success by initiatives such as process payments, brand loyalty, and social and
improvement, employee training environmental effects)
and relationships management.
A simple example illustrates the distinction 4.20 An integrated report presents outcomes This requires a distinct consideration of
between outputs and outcomes, and the in a balanced way. Where practicable, each material business model as well as
importance of a balanced consideration of it supports the organization’s assessment of commentary on the extent of connectivity
outcomes. the use of and effects on the capitals with between the business models (such as the
qualitative and quantitative information. existence of synergistic benefits) unless
(See paragraphs 1.11, 3.44–3.45, 5.6–5.7.) the organization is run as an investment
An automotive manufacturer produces management business (in which case,
4.21 Identifying and describing outcomes, it may be appropriate to focus on the
internal combustion engine cars as its
particularly external outcomes, requires investment management business model,
core output. Positive outcomes include
an organization to consider the capitals rather than the business models of
increases in financial capital (through
more broadly than those that are owned or individual investments).
profits to the company and supply chain
controlled by the organization. For example,
partners, shareholder dividends and local 4.23 The integrated report of an organization
it may require disclosure of the effects
tax contributions) and enhanced social with multiple businesses often needs
on capitals up and down the value
and relationship capital (through improved to balance disclosure with the need to
chain (e.g. carbon emissions caused by
brand and reputation, underpinned by reduce complexity; however, material
products the organization manufactures
satisfied customers and a commitment to information should not be omitted. Aligning
and labour practices of key suppliers).
quality and innovation). external reporting with internal reporting
(See also paragraphs 3.30–3.35 regarding
Negative outcomes include adverse determination of the reporting boundary.) by considering the top level of information
consequences for natural capital (through that is regularly reported to those charged
4.22 Some organizations employ more than one with governance is ordinarily appropriate.
product-related fossil fuel depletion and
business model (e.g. when operating in
air quality reduction) and reduced social
different market segments). Disaggregating
and relationship capital (through the
the organization into its material constituent
influence of product-related health and
operations and associated business models
environmental concerns on social licence
is important to an effective explanation
to operate).
of how the organization operates.
4D Risks and opportunities • The organization’s assessment of the 4E Strategy and resource allocation
likelihood that the risk or opportunity
4.24 An integrated report should answer will come to fruition and the magnitude 4.28 An integrated report should answer
the question: What are the specific of its effect if it does. This includes the question: Where does the
risks and opportunities that affect the consideration of the specific organization want to go and how
organization’s ability to create value over circumstances that would cause the risk does it intend to get there?
the short, medium and long term, and how or opportunity to come to fruition. Such
is the organization dealing with them? 4.29 An integrated report ordinarily identifies:
disclosure will invariably involve a degree
of uncertainty. (See also paragraph 5.2 • The organization’s short-, medium-
4.25 An integrated report identifies the key and long-term strategic objectives
risks and opportunities that are specific regarding disclosures about uncertainty.)
to the organization, including those that • The specific steps being taken to mitigate • The strategies it has in place, or
relate to the organization’s effects on, or manage key risks or to create value intends to implement, to achieve
and the continued availability, quality from key opportunities, including the those strategic objectives
and affordability of, relevant capitals identification of the associated strategic • The resource allocation plans it has
in the short, medium and long term. objectives, strategies, policies, targets to implement its strategy
and key performance indicators.
4.26 This can include identifying: • How it will measure achievements and
4.27 Considering the Guiding Principle target outcomes for the short, medium
• The specific source of risks and and long term.
opportunities, which can be internal, materiality, the organization’s approach
external or, commonly, a mix of the two. to any real risks (whether they be in the
External sources include those stemming short, medium or long term) that are
from the external environment, as fundamental to the ongoing ability of the
discussed in paragraphs 4.6–4.7. Internal organization to create value and that could
sources include those stemming from have extreme consequences is ordinarily
the organization’s business activities, as included in an integrated report, even
discussed in paragraphs 4.16–4.17. when the probability of their occurrence
might be considered quite small.
4.30 This can include describing: • What differentiates the organization to 4F Performance
give it competitive advantage and enable
• The linkage between the organization’s it to create value, such as: 4.31 An integrated report should answer
strategy and resource allocation plans, the question: To what extent has
and the information covered by other ‒ The role of innovation the organization achieved its
Content Elements, including how its ‒ How the organization develops and strategic objectives for the period
strategy and resource allocation plans: exploits intellectual capital and what are its outcomes in terms
of effects on the capitals?
‒ Relate to the organization’s ‒ The extent to which environmental
business model, and what changes and social considerations have 4.32 An integrated report contains
to that business model might be been embedded into the qualitative and quantitative
necessary to implement chosen organization’s strategy to give it information about performance that
strategies to provide an understanding a competitive advantage may include matters such as:
of the organization’s ability to adapt ‒ Key features and findings of
to change • Quantitative indicators with respect
stakeholder engagement that were to targets, risks and opportunities,
‒ Are influenced by/respond to the used in formulating its strategy and explaining their significance, their
external environment and the resource allocation plans. implications, and the methods and
identified risks and opportunities assumptions used in compiling them
‒ Affect the capitals, and the risk • The organization’s effects (both positive
management arrangements related and negative) on the capitals, including
to those capitals. material effects on capitals up and down
the value chain
• The state of key stakeholder relationships 4.34 It may be relevant for the discussion • How that will affect the organization
and how the organization has responded of performance to include instances • How the organization is currently
to key stakeholders’ legitimate needs where regulations have a significant equipped to respond to the critical
and interests effect on performance (e.g. a constraint challenges and uncertainties that are
• The linkages between past and on revenues as a result of regulatory likely to arise.
current performance, and between rate setting) or the organization’s
current performance and the non‑compliance with laws or regulations 4.37 Care is needed to ensure the organization’s
organization’s outlook. may significantly affect its operations. stated expectations, aspirations and
intentions are grounded in reality. They need
4.33 Key performance indicators that combine 4G Outlook to be commensurate with the ability of the
financial measures with other components 4.35 An integrated report should answer organization to deliver on the opportunities
(e.g. the ratio of greenhouse gas emissions the question: What challenges and available to it (including the availability,
to sales) or narrative that explains the uncertainties is the organization likely to quality and affordability of appropriate
financial implications of significant encounter in pursuing its strategy, and capitals), and a realistic appraisal of the
effects on other capitals and other causal what are the potential implications for its organization’s competitive landscape and
relationships (e.g. expected revenue growth business model and future performance? market positioning, and the risks it faces.
resulting from efforts to enhance human
capital) may be used to demonstrate the 4.36 An integrated report ordinarily highlights
connectivity of financial performance with anticipated changes over time and
performance regarding other capitals. provides information, built on sound
In some cases, this may also include and transparent analysis, about:
monetizing certain effects on the capitals
(e.g. carbon emissions and water use). • The organization’s expectations about the
external environment the organization is
likely to face in the short, medium and
long term
4.38 The discussion of the potential 4.40 Disclosures about an organization’s outlook Summary of materiality determination process
implications, including implications in an integrated report are made taking into 4.43 An integrated report includes a
for future financial performance, account the legal or regulatory requirements summary of the organization’s
ordinarily includes discussion of: to which the organization is subject. materiality determination process
• The external environment, and risks and and key judgements. (See paragraphs
opportunities, with an analysis of how 4H Basis of preparation and 3.18–3.20.) This may include:
these could affect the achievement of presentation • Brief description of the process used to
strategic objectives 4.41 An integrated report should answer the identify relevant matters, evaluate their
• The availability, quality and affordability of question: How does the organization importance and narrow them down to
capitals the organization uses or affects determine what matters to include in material matters
(e.g. the continued availability of skilled the integrated report and how are such • Identification of the role of those charged
labour or natural resources), including how matters quantified or evaluated? with governance and key personnel in
key relationships are managed and why the identification and prioritization of
they are important to the organization’s 4.42 An integrated report describes its basis of
preparation and presentation, including: material matters
ability to create value over time.
• A summary of the organization’s A link to where a more detailed description
4.39 An integrated report may also provide lead materiality determination process of the materiality determination process
indicators, key performance indicators (see paragraph 4.43) can be found may also be included.
or objectives, relevant information
from recognized external sources, and • A description of the reporting boundary Reporting boundary
sensitivity analyses. If forecasts or and how it has been determined (see 4.44 An integrated report identifies its reporting
projections are included in reporting paragraphs 4.44–4.47) boundary and explains how it has been
the organization’s outlook, a summary • A summary of the significant frameworks determined. (See paragraphs 3.30–3.35.)
of related assumptions is useful. and methods used to quantify or evaluate
Comparisons of actual performance material matters (see paragraphs 4.48–
to previously identified targets further 4.49).
enables evaluation of the current outlook.
4.45 Material risks, opportunities and It may be appropriate to disclose such 4.49 As noted in paragraph 1.10, when
outcomes attributable to or associated limitations, and actions being taken to information in an integrated report is similar
with entities that are included in the overcome them, in an integrated report. to or based on other information published
financial reporting entity, are reported on by the organization, it is prepared on the
in the organization’s integrated report. Summary of significant frameworks same basis as, or is easily reconcilable
and methods
with, that other information. For example,
4.46 Risks, opportunities and outcomes 4.48 An integrated report includes a summary when a key performance indicator covers a
attributable to or associated with other of the significant frameworks and similar topic to, or is based on information
entities/stakeholders are reported on methods used to quantify or evaluate published in the organization’s financial
in an integrated report to the extent material matters included in the report statements or sustainability report, it is
they materially affect the ability of the (e.g. the applicable financial reporting prepared on the same basis, and for the
financial reporting entity to create value. standards used for compiling financial same period, as that other information.
information, a company-defined formula
4.47 Practical issues might limit the nature and for measuring customer satisfaction, or an
extent of information that can be presented industry‑based framework for evaluating
in an integrated report. For example: risks). More detailed explanations might
• The availability of reliable data with be provided in other communications.
respect to entities the financial reporting
entity does not control
• The inherent inability to identify all
risks, opportunities and outcomes that
will materially affect the ability of the
financial reporting entity to create value,
particularly in the long term.
5. General Reporting Guidance

Disclosure of material matters • If there is uncertainty surrounding a
5.1 The following general reporting 5.2 Taking the nature of a material matter matter, disclosures about the uncertainty,
matters are relevant to into consideration, the organization such as:
various Content Elements: considers providing: ‒ An explanation of the uncertainty
• Disclosure of material matters • Key information, such as: ‒ The range of possible outcomes,
(see paragraphs 5.2–5.5) associated assumptions, and how
‒ An explanation of the matter and its
• Disclosures about the capitals effect on the organization’s strategy, the information could change if
(see paragraphs 5.6–5.8) business model or the capitals the assumptions do not occur
as described
• Time frames for short, medium ‒ Relevant interactions and
and long term (see paragraphs interdependencies providing an ‒ The volatility, certainty range or
5.9–5.11) understanding of causes and effects confidence interval associated with
the information provided.
• Aggregation and disaggregation ‒ The organization’s view on the matter
(see paragraphs 5.12–5.14). • If key information about the matter is
‒ Actions to manage the matter and how
effective they have been considered indeterminable, disclosure of
that fact and the reason for it
‒ The extent of the organization’s
control over the matter • If significant loss of competitive
advantage would result, disclosures
‒ Quantitative and qualitative of a general nature about the matter,
disclosures, including comparative rather than specific details (see
information for prior periods and paragraph 3.51).
targets for future periods.
5.3 Depending on the nature of a matter, Characteristics of quantitative indicators • Presented with the corresponding
it may be appropriate to present it 5.5 Quantitative indicators, such as targets, forecasts or projections for two
on its own in the integrated report key performance indicators, can or more future periods
or throughout in conjunction with help increase comparability and are • Presented for multiple periods
different Content Elements. particularly helpful in expressing and (e.g. three or more periods) to provide
5.4 Care is needed to avoid generic disclosures. reporting against targets. Common an appreciation of trends
Information is only included when it is characteristics of suitable quantitative • Presented against previously reported
of practical use in achieving the primary indicators may include that they are: targets, forecasts or projections for the
purpose of an integrated report as noted in • Relevant to the circumstances purpose of accountability
paragraph 1.7. This requires that disclosures of the organization • Consistent with generally accepted
be specific to the circumstances of the • Consistent with indicators used internally industry or regional benchmarks to
organization. Accordingly, the bulleted by those charged with governance provide a basis for comparison
lists of examples and considerations with
respect to each Content Element are not • Connected (e.g. they display connectivity • Reported consistently over successive
meant to be checklists of disclosures, between financial and other information) periods, regardless of whether the
nor is Figure 2 intended to be a fixed • Focused on the matters identified resulting trends and comparisons are
template for disclosure purposes. It is by the organization’s materiality favourable or unfavourable.
important that disclosures are specific to determination process
the circumstances of the organization.
• Presented with qualitative information • Include the factors that affect their Complexity, interdependencies and trade-offs
to provide context and improve availability, quality and affordability and 5.8 The <IR> Framework does not require
meaningfulness. Relevant qualitative the organization’s expectations of its an integrated report to provide an
information includes an explanation of: ability to produce flows from them to exhaustive account of all the complex
‒ Measurement methods and meet future demand. This is particularly interdependencies between the capitals
underlying assumptions relevant with respect to capitals that are such that an organization’s net impact
in limited supply, are non-renewable, and on the global stock of capitals could
‒ The reasons for significant variations can affect the long-term viability of an
from targets, trends or benchmarks, be tallied. It is important, however,
organization’s business model. that an integrated report disclose the
and why they are or are not expected
to reoccur. 5.7 When it is not practicable or meaningful interdependencies that are considered in
to quantify significant movements in the determining its reporting boundary, and the
Disclosures about the capitals capitals, qualitative disclosures are made important trade-offs that influence value
to explain changes in the availability, creation over time, including trade-offs:
5.6 Disclosures about the capitals,
or a component of a capital: quality or affordability of capitals as • Between capitals or between
business inputs and how the organization components of a capital (e.g. creating
• Are determined by their effects on the
increases, decreases or transforms them. employment through an activity that
organization’s ability to create value over
It is not, however, necessary to quantify or negatively affects the environment)
time, rather than whether or not they are
describe the movements between each of • Over time (e.g. choosing one course of
owned by the organization
the capitals for every matter disclosed. action when another course would result
in superior capital increment but not until
a later period)
• Between capitals owned by the
organization and those owned by others
or not at all.
Time frames for short, medium and long term 5.11 The length of each reporting time frame 5.13 In some circumstances, aggregation of
5.9 The future time dimension to be considered and the reason for such length might information can result in a significant loss
in preparing and presenting an integrated affect the nature of information disclosed of meaning and can also fail to highlight
report will typically be longer than for some in an integrated report. For example, particularly strong or poor performance
other forms of reporting. The length of because longer-term matters are more in specific areas. On the other hand,
each time frame for short, medium and likely to be more affected by uncertainty, unnecessary disaggregation can result
long term is decided by the organization information about them may be more in clutter that adversely affects the ease
with reference to its business and likely to be qualitative in nature, whereas of understanding the information.
investment cycles, its strategies, and its information about shorter-term matters
may be better suited to quantification, 5.14 The organization disaggregates (or
key stakeholders’ legitimate needs and aggregates) information to an appropriate
interests. Accordingly, there is no set answer or even monetization. However, it is
not necessary to disclose the effects level considering, in particular, how
for establishing the length for each term. senior management and those charged
of a matter for each time frame.
5.10 Time frames differ by: with governance manage and oversee
Aggregation and disaggregation the organization and its operations.
• Industry or sector (e.g. strategic This commonly results in presenting
objectives in the automobile 5.12 Each organization determines the level of
information based on the business or
industry typically cover two model- aggregation (e.g. by country, subsidiary,
geographical segments used for financial
cycle terms, spanning between eight division, or site) at which to present
reporting purposes. (See also paragraphs
and ten years, whereas within the information that is appropriate to its
4.22–4.23 regarding organizations
technology industry, time frames might circumstances. This includes balancing
with multiple business models.)
be significantly shorter) the effort required to disaggregate (or
aggregate) information against any added
• The nature of outcomes (e.g. some meaningfulness of information reported
issues affecting natural or social and on a disaggregated (or aggregated) basis.
relationship capitals can be very long
term in nature).
GLOSSARY Back Contents Previous Next
For the purpose of the <IR> Content Elements. The categories of information Integrated reporting. A process founded on
required to be included in an integrated report; integrated thinking that results in a periodic
Framework, unless stated the Content Elements, which are fundamentally integrated report by an organization about value
otherwise, the following terms have linked to each other and are not mutually creation, preservation or erosion over time and
exclusive, are stated in the form of questions to related communications regarding aspects of
the meanings attributed below: be answered in a way that makes the relationships value creation, preservation or erosion.
Business model. An organization’s system of between them apparent.
Integrated thinking. The active consideration
transforming inputs through its business activities
Guiding Principles. The principles that underpin by an organization of the relationships between
into outputs and outcomes that aims to fulfil the
the preparation and presentation of an integrated its various operating and functional units
organization’s strategic purposes and create value
report, informing the content of the report and how and the capitals that the organization uses or
over the short, medium and long term.
information is presented. affects. Integrated thinking leads to integrated
Capitals. Stocks of value on which all decision‑making and actions that consider the
Inputs. The capitals (resources and creation, preservation or erosion of value over the
organizations depend for their success as
relationships) that the organization draws short, medium and long term.
inputs to their business model, and which are
upon for its business activities.
increased, decreased or transformed through
Material/materiality. A matter is material if it
the organization’s business activities and Integrated report. A concise communication could substantively affect the organization’s ability
outputs. The capitals are categorized in the about how an organization’s strategy, governance, to create value in the short, medium or long term.
<IR> Framework as financial, manufactured, performance and prospects, in the context of
intellectual, human, social and relationship, its external environment, lead to the creation, Outcomes. The internal and external
and natural. preservation or erosion of value in the short, consequences (positive and negative) for the
medium and long term. capitals as a result of an organization’s business
activities and outputs.
GLOSSARY Back Contents Previous Next
Outputs. An organization’s products and services, Stakeholders. Those groups or individuals that Those charged with governance. The person(s)
and any by-products and waste. can reasonably be expected to be significantly or organization(s) (e.g. the board of directors
affected by an organization’s business activities, or a corporate trustee) with responsibility
Performance. An organization’s achievements outputs or outcomes, or whose actions can for overseeing the strategic direction of an
relative to its strategic objectives, and its reasonably be expected to significantly affect organization and its obligations with respect
outcomes in terms of its effects on the capitals. the ability of the organization to create value to accountability and stewardship. For some
over time. Stakeholders may include providers of organizations and jurisdictions, those charged with
Providers of financial capital. Equity and debt
financial capital, employees, customers, suppliers, governance may include executive management.
holders and others who provide financial capital,
business partners, local communities, NGOs,
both existing and potential, including lenders Value creation, preservation or erosion.
environmental groups, legislators, regulators and
and other creditors. This includes the ultimate The process that results in increases, decreases
policy-makers.
beneficiaries of investments, collective asset or transformations of the capitals caused by the
owners, and asset or fund managers. Strategy. Strategic objectives together with the organization’s business activities and outputs.
strategies to achieve them.
Reporting boundary. The boundary within which
matters are considered relevant for inclusion in an
organization’s integrated report.
APPENDIX – SUMMARY OF REQUIREMENTS Back Contents Previous Next
Using the <IR> Framework

Form of report and relationship with • Explain the reason why it has been
other information GUIDING PRINCIPLES
omitted
1.12 An integrated report should be a Strategic focus and future orientation
• In the case of the unavailability of data,
designated, identifiable communication. identify the steps being taken to obtain 3.3 An integrated report should provide insight
the information and the expected time into the organization’s strategy, and how
Application of the <IR> Framework that relates to its ability to create value
frame for doing so.
1.17 Any communication claiming in the short, medium and long term and
to be an integrated report and Responsibility for an integrated report to its use of and effects on the capitals.
referencing the Framework should 1.20 An integrated report should include
apply all the requirements identified Connectivity of information
a statement from those charged
in bold italic type unless: with governance that includes: 3.6 An integrated report should show a holistic
• The unavailability of reliable picture of the combination, interrelatedness
• An acknowledgement of their and dependencies between the
information or specific legal responsibility to ensure the integrity of
prohibitions results in an inability to factors that affect the organization’s
the integrated report ability to create value over time.
disclose material information
• Their opinion or conclusion about
• Disclosure of material information would whether, or the extent to which, the Stakeholder relationships
cause significant competitive harm. integrated report is presented in 3.10 An integrated report should provide
1.18 In the case of the unavailability of accordance with the <IR> Framework. insight into the nature and quality of the
reliable information or specific legal organization’s relationships with its key
prohibitions, an integrated report should: Where legal or regulatory requirements
stakeholders, including how and to what
preclude a statement of responsibility
• Indicate the nature of the information extent the organization understands,
from those charged with governance, this
that has been omitted takes into account and responds to
should be clearly stated.
their legitimate needs and interests.
APPENDIX – SUMMARY OF REQUIREMENTS Back Contents Previous Next
Materiality CONTENT ELEMENTS Strategy and resource allocation

3.17 An integrated report should disclose Organizational overview and external environment 4.28 An integrated report should answer the
information about matters that question: Where does the organization want
substantively affect the organization’s 4.4 An integrated report should answer the to go and how does it intend to get there?
ability to create value over the question: What does the organization
short, medium and long term. do and what are the circumstances Performance
under which it operates?
4.31 An integrated report should answer
Conciseness the question: To what extent has
Governance
3.36 An integrated report should be concise. the organization achieved its
4.8 An integrated report should strategic objectives for the period
Reliability and completeness answer the question: How does the and what are its outcomes in terms
organization’s governance structure of effects on the capitals?
3.39 An integrated report should include
support its ability to create value in
all material matters, both positive
the short, medium and long term? Outlook
and negative, in a balanced way
and without material error. Business model 4.35 An integrated report should answer
the question: What challenges and
Consistency and comparability 4.10 An integrated report should uncertainties is the organization likely to
answer the question: What is the encounter in pursuing its strategy, and
3.54 The information in an integrated
organization’s business model? what are the potential implications for its
report should be presented:
business model and future performance?
• On a basis that is consistent over time Risks and opportunities
• In a way that enables comparison with 4.24 An integrated report should answer Basis of preparation and presentation
other organizations to the extent it the question: What are the specific 4.41 An integrated report should answer the
is material to the organization’s own risks and opportunities that affect the question: How does the organization
ability to create value over time. organization’s ability to create value over determine what matters to include in
the short, medium and long term, and how the integrated report and how are such
is the organization dealing with them? matters quantified or evaluated?
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INTERNATIONAL

About the IIRC

About integrated reporting

Integrated reporting is part of an evolving Integrated thinking is the active consideration by

EXECUTIVE SUMMARY 5 PART 2 – THE INTEGRATED REPORT 24

PART 1 – INTRODUCTION 9 3. Guiding Principles 25

A Strategic focus and future orientation . . . . . . . . . . . . . 25

Fundamental Concepts The ability of an organization to create value for

• Strategy and resource allocation. Where does the

1. Using the <IR> Framework

at large). organization, the organization’s ORGANIZATION

reputation, conditions imposed on the INT

Figure 2. Process through which value is created, preserved or eroded

PURPOSE, MISSION, VISION

INTELLECTUAL BUSINESS INTELLECTUAL

SOCIAL AND SOCIAL AND

VALUE CREATION, PRESERVATION OR EROSION OVER TIME

2.27 The organization’s strategy identifies how

2.28 The organization needs information about

2.29 The value creation, preservation or erosion

PART 2 THE INTEGRATED REPORT

Figure 3. Entities/stakeholders considered in determining the reporting boundary

REPORTING BOUNDARY FOR THE INTEGRATED REPORT

FINANCIAL REPORTING ENTITY

JOINT ARRANGEMENTS SUBSIDIARIES INVESTMENTS (OTHER FORMS)

EMPLOYEES CUSTOMERS SUPPLIERS BUSINESS COMMUNITIES OTHERS

3.43 Paragraph 1.18 identifies relevant

Balance Freedom from material error 3.48 Determining completeness includes

Competitive advantage Future-oriented information 3G Consistency and comparability

Comparability • Presenting information in the form of

• Environmental challenges, such as 4B Governance • Particular actions those charged

4C Business model 4.13 Features that can enhance the Inputs

Business activities Outputs • Both positive outcomes (i.e. those that

5. General Reporting Guidance

Using the <IR> Framework

Materiality CONTENT ELEMENTS Strategy and resource allocation

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