The International Integrated Reporting Council (IIRC) has launched a pilot programme yearbook and has identified early integrated reporting (IR) trends.
In its yearbook, The Pilot Programme 2012 Yearbook, the IIRC report on some of the developments made so far and identifies emerging trends and practices.
Some of the main trends among the pilot programme businesses across five areas that are the focus of technical papers include:
- Companies are identifying new business models in terms of operating structures, brands and product offerings;
- Businesses are demonstrating ways to create and preserve value through their business models and values;
- The capitals evaluated in IR are financial capital, human capital, intellectual capital, natural capital and social capital;
- Working across departments to connect information in order to develop integrated reporting can help break down ‘silos’ and lead to a stronger cross-functional communications; and,
- Several investors have called for annual reports to clearly identify material risks and the financial and strategic implications of all the capitals.
The IIRC’s pilot programme, which was launched to help in the creation of the world’s first international IR framework, has doubled in participants since 2011 with 82 businesses from different economic sectors in more than 20 countries now participating.
IIRC chief executive Paul Druckman said the diversity of the pilot programme membership guarantees the concepts underpinning IR receive robust scrutiny and challenge.
“We do not suffer from ‘group think’ at the IIRC!,” Druckman emphasised at the IIRC’s the closed pilot programme conference hosted by KPMG in Amsterdam.
Druckman added that the pilot is IIRC’s innovation hub and referred to the people who support the initiative as actors who want to “push the boundaries and challenge the orthodox thinking” towards a new way of reporting.
Watch out for more coverage from the IIRC conference in the October issue of The Accountant.