World’s first Integrated Reporting Framework to be launched in 2013 as IIRC enters final phases of development
The International Integrated Reporting Council (IIRC) has confirmed plans to publish the world’s first Integrated Reporting Framework by the end of 2013.
The Integrated Reporting Framework aims to underpin and accelerate the global evolution of corporate reporting, allowing organizations to communicate the full range of factors that contribute to the creation of value and ensure they are embedded within an organization’s strategy.
The IIRC has also published a summary of responses to its Discussion Paper launched in September 2011.
The responses demonstrate overwhelming stakeholder support for the IIRC to begin the next phase of its framework development. This will include specific work streams on several topics including materiality, the concept of value and business model. The IIRC will conduct this phase in close dialogue with a full range of stakeholders to ensure the process is transparent and informed by market participants.
Commenting on today’s publication Paul Druckman, IIRC Chief Executive Officer, said:
“It is right that companies’ communication with investors and other stakeholders reflects the full range of factors that contribute to the creation of sustainable value. Huge strides have been made in recent years, for example to incorporate risk disclosure into financial reporting. In addition the development of sustainability reporting provides a new dimension from which to consider value creation and preservation.
Despite these innovations, understanding how companies create sustainable value from their published reports can still be difficult. What the Integrated Reporting Framework will do for the corporate reporting process is to enable investors and other stakeholders to understand better the ways in which companies create sustainable value”.
A total of 214 responses to the Discussion Paper from organizations and individuals in over 30 countries were received.
The IIRC’s analysis identifies four significant areas that need to be explored further to develop the framework:
Basic concepts underlying the definition of Integrated Reporting
Target audience for Integrated Reporting
From whose perspective “value” should be considered (Value to the organization, to investors, to other stakeholders, or to society at large?)
Timing of the release of the framework
To read the full report: Discussion Paper Summary.