JAPANESE BUSINESSES SUPPORT <IR> AS ROUTE TO GREATER FINANCIAL STABILITY AND LONG-TERM INVESTMENT
(Tokyo, 1 November) Commenting on the IIRC’s first two days of meetings in Tokyo with some of Japan’s largest global businesses, investors and the accounting industry leaders, IIRC Chief Executive Paul Druckman said:
“Japanese business leaders are among the most far-sighted in the world. Of the 4,000 businesses globally that can boast a history of 200 years or more, over half of them are Japanese. Japan’s business leaders increasingly appreciate the contribution that corporate reporting reform and <IR> specifically, can make towards achieving greater financial stability and a focus on long-term investment.”
“Many business leaders have commented that the capital markets are finding it increasingly difficult to value companies appropriately. <IR> can help businesses to reveal this hidden value to their investors.”
“My request to Japan’s businesses is clear and straightforward: please join the IIRC’s Pilot Programme and help us to create the International <IR> Framework. We must ensure that Japan’s unique voice, its business values and ethos are heard and reflected throughout our work”.
Mr Druckman and IIRC Independent Director Jane Diplock addressed the Corporate Finance Executive Committee at the Ministry of Economy, Trade and Industry (METI) on Monday 29 October 2012, which was attended by some of Japan’s largest corporations. At the meeting Ms Diplock, a former Chair of IOSCO and a current non-executive director of the Singapore Stock Exchange, spoke of the need to tackle the dual challenges of financial instability and short-termism.
At the conclusion of the Corporate Finance Executive Committee, Mr Yukihito Sato, Chairman of the Committee, said:
“We truly share the ultimate objectives that the Integrated Reporting initiative is pursuing and the Government has to play a key role. Japan needs to reapply the principles of long-termism that I remember from when I started my business 40 years ago. I hope that Integrated Reporting will be useful in helping Japanese businesses unlock their corporate value and fostering long-term business perspectives. I also hope that regulatory authorities and other relevant organisations will give serious consideration to any related issues, which will be a prerequisite to pave the way for the introduction of Integrated Reporting.”
NOTES TO EDITORS:
• The IIRC’s mission is to create the globally accepted International <IR> Framework that elicits from businesses information about their strategy, governance, performance and prospects in a clear, concise and comparable format. The International <IR> Framework will underpin and accelerate the evolution of corporate reporting, reflecting developments in financial, governance, social and sustainability reporting.
• Our vision is for <IR> to be accepted globally as the corporate reporting norm, benefiting businesses, their investors and other stakeholders by enabling informed decision-making that leads to efficient capital allocation and the creation and preservation of value. By encouraging a different way of thinking, <IR> will contribute towards the advancement of a more resilient global economy.
The Framework will accelerate the global evolution of corporate reporting because organizations will be able to:
o Share information across departments, contributing to the report – adding strategic focus and creating value for the organization
o Embed the Framework within the company’s own strategy