IIRC Newsletter - July Edition

Help us to develop training on <IR> to meet market needs

The IIRC is today releasing the first draft of the <IR> Competence Matrix for feedback. The Matrix is intended to provide a clear guidance in the market as to the skills and experience necessary to be an effective practitioner in <IR>. While the areas of competence the IIRC has set out clearly build on the existing professional skills possessed by those already involved in reporting, we have also developed the matrix with a view to an important shift in focus that we believe is essential, not just for effective Integrated Reporting, but to enable organizations to put value creation at the heart of their purpose and strategy. 

The IIRC has taken a market-led approach to this project, and seeks to provide global offerings that can be applied in different contexts to suit local practices and requirements.  
  • Outcomes-based: We have adopted a principles-based approach, setting out the learning outcomes required. This is an approach followed by many institutions and professions. It is also entirely in keeping with the principles-based approach of the International <IR> Framework itself. Users of the competence matrix therefore should not expect to discover a step by step guide to implementing <IR> through a process – which we continue to believe is best led by reference to the individual circumstances of each organization adopting <IR> and by learning from leading practice in the market.
  • Integrated thinking embedded: Integrated thinking has been emphasized to ensure that this key aspect of <IR> is appropriately covered in the required competences. In fact, three of four areas of competence proposed in the matrix relate to the wider facets of reporting.
  • Linked with governance: Through this offering, we aim to reinforce the close relationship between corporate governance and reporting. In particular, we draw out the role of leaders and the board – ‘introductory’ learning outcomes are included in the matrix which are relevant to those coming to <IR> for the first time and, in particular, directors and those responsible for oversight of the organization.
  • Whole business perspective: While the reporting process is important and we have included learning outcomes relating to implementing Integrated Reporting itself, we do not believe practitioners should focus on process alone. The linkages that <IR> requires to strategy and its scope across the organization, require a broader outlook. We have therefore included areas of competence around change management and leadership – areas which are essential in the context of ‘reporting on the whole business’, involving wide interactions within and outside the organization.
The draft version of the <IR> competence matrix is available for viewing and feedback until 16 September 2015. We encourage all stakeholders to read the <IR> Competence Matrix and related materials and to provide their feedback using the online survey.

The competence matrix has been developed by the IIRC with the benefit of an advisory group drawn from a wide range of countries and organizations. We also acknowledge the role of ACCA in providing educational expertise to develop the competence matrix.

Sri Lanka latest country to see economic benefit of <IR>

The Prime Minister of Sri Lanka has endorsed Integrated Reporting. Writing in the Daily Financial Times he said that adopting <IR> will make Sri Lanka more attractive for foreign investment and local private investment. The Prime Minister, Hon Ranil Wickremesinghe, wrote, "Learning and adopting Integrated Reporting will definitely benefit the corporate sector and make their reports more meaningful to investors and stakeholders. This will make our country more attractive for foreign direct investment and local private investment."  

The Prime Minister was writing ahead of the Institute of Certified Management Accountants of Sri Lanka's Excellence in Integrated Reporting Awards 2015, an important event with attendees and speakers from across the region including India, Bangladesh and Pakistan.

The event, organised by the Institute of Certified Management Accountants, began with an address by Sri Lanka's President, Maithripala Sirisena. The President believes that accountants have an important role to play in ensuring that fraud and corruption are mitigated - stressing the need for financial discipline so that Sri Lanka can prosper. Writing ahead of the conference, the President said, "Sri Lanka will, without doubt, greatly benefit from this conference on 'Business Resilience through Integrated Reporting' as this will be a great platform for our professionals to be briefed on how to keep up with innovations to the field." 

The President continued, "I feel that including key authorities in Integrated Reporting, such as the President of the International Federation of Accountants, a Director of International Integrated Reporting Council and experts from South Africa... will make the program a very vibrant and productive one."
Olivia Kirtley, President of the International Federation of Accountants was a keynote speaker at the event, saying "IFAC has a long and proud history of supporting Integrated Reporting," she continued, "The evolution of Integrated Reporting is helping to further embed the profession at the heart of organizational strength and economic success." 

The Excellence in Integrated Reporting Award was won by <IR> Business Network participant Diesel & Motor Engineering, an organization which has been a long-time supporter of <IR>. It helped develop the International <IR> Framework through participation in the IIRC Pilot Programme which trialed and fed back on the development of the Framework.

Inside stories that will enable you to advance your <IR> journey

Black Sun and the IIRC are today publishing a new resource for organizations that would like the inside story on how organizations are moving towards <IR>. In 2014, Black Sun and the IIRC announced research that demonstrated that 92% of respondents adopting <IR> have seen an increased understanding of value creation, with 87% reporting that they believe providers of financial capital better understand the organization's strategy. Now they are releasing the stories behind this research via interviews from leaders in the corporate reporting field. 

The publication includes in depth interviews with 27 organizations from 11 countries around the world, with stories that will resonate across sectors and organization types. Each story is unique with its own rationales, challenges and benefits - with interviews from those working towards their first integrated report through to those that are well on their way towards <IR>, having already published a few integrated reports. 

The message from those embarking on the <IR> journey is that better internal collaboration between the organizations' different teams, moving away from operating in silos, to more productive environments and increased efficiency is important. They also point out that refinement of KPIs, which are linked to material issues, helps to improve performance management. The report states that, "A common piece of advice for those considering <IR> is to just start. As the company heads in the direction of integrated thinking, <IR> should follow."
The inside story is now available for those wanting to learn from leaders in the corporate reporting field on the IIRC's website: integratedreporting.org/resources 

In case you missed them...

The IIRC and its partners have developed a number of programmes and resources to help implement <IR>. For example, <IR> Networks bring together trailblazing organizations that are adopting the principles and practices of <IR> and the <IR> Examples Database demonstrates how companies are approaching <IR> from around the world.

Through the Corporate Reporting Dialogue, eight prominent organizations in corporate reporting together published a Landscape Map that provides a snapshot of comparison of their frameworks, standards and related requirements through the lens of Integrated Reporting.

Here is a round up of what else is available:

Assurance and advisory firm Nkonki releases findings of its fourth annual review of <IR> in South African State Owned Companies
And <IR>  Business Network participant Transnet wins their Integrated Reporting Award


<IR> Business Network participant Diesel & Motor Engineering wins the Institute of Certified Management Accountants of Sri Lanka's Excellence in Integrated Reporting Awards 2015


Email info@theiirc.org to let us know about your integrated report or about resources your organization has published to encourage take up of <IR>

'The adoption of the EU Non-Financial Directive in Germany'
by Matthias Schmidt, Region Lead: Germany, IIRC
Contact: juliet.markham@theiirc.org
Copyright © 2015 International Integrated Reporting Council, All rights reserved.
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