Wales Audit Office

NGOs

Companies

Investors

Accounting

Standard setters

Regulators

Chair: Prof Mervyn King CEO: Paul Druckman

Who is the IIRC?

Our long-term vision is a world in which integrated thinking is embedded within

mainstream business practice in the public and private sectors, facilitated by <IR> as the

corporate reporting norm.

The cycle of integrated thinking and reporting, resulting in efficient and productive capital allocation, will act as forces for financial

stability and sustainability.

Long Term Vision

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400 Prudential annual report pages - 1850-2008

'Back end' pages

'Front end' pages

Source: Investis Research

Why <IR>: Volume of reports

Why <IR>: More than financials

STRATEGY AND GOVERNANCE

IMPLEMENTATION PLANS

BUSINESS AS USUAL

Business value

STRATEGIC ISSUES

FORECASTS / PLANS

PAST PERFORMANCE

Reporting content

Why <IR>: The reporting mismatch

strategy, governance,

performance, prospects Financial reporting

Other reporting

concise communication about value

<IR>: A new focus

Discussion Paper

Prototype Framework

Emerging <IR> Database

Building the Business Case for <IR>

Background Papers for <IR>

IIRC Pilot Programme Yearbooks

The Framework journey so far…

Basis for Conclusions

Summary of Significant Issues

The Framework journey

Discussion Paper

Prototype Framework

Emerging <IR> Database

Building the Business Case for <IR>

Background Papers for <IR>

IIRC Pilot Programme Yearbooks

The Framework journey ahead

Basis for Conclusions

Summary of Significant Issues

• Framework Development

• Guidance and Practice

• Thought leadership

• Academic community

• Databases

• Evidence Base

Business Network

Investor Network

IIRC Pilot Programme

The Framework: Fundamental Concepts

The Value Creation Process

Wales Audit Office

Integrated reporting

Total Contribution

Business model

Material issues

Business planning

What is Total Contribution?

• Value - direct, indirect and through our enabling actions

• Beyond economic: Including Social and Environmental

• Transparency principles

• Credit, Confidence, Net Contribution

Results Value chain – Biggest impact where we have influence not control

118 unemployed placed into permanent employment resulted in £1.1m economic value (to individuals and nation)

4 million tCO2 more emissions sequestered

through forestry and avoided by low carbon energy generation than emissions generated.

Carbon net positive

£5,233m Gross Value Added (GVA)

contributed to the UK economy