IIRC enters ambitious new phase of activity

The International Integrated Reporting Committee has concluded a successful series of meetings in Brazil, marking a new phase in the initiative to develop an internationally accepted Integrated Reporting Framework. Following the meetings, the Committee will become the International Integrated Reporting Council (IIRC).

Great interest was expressed by Brazilian and other South American companies in joining the Integrated Reporting Pilot Programme, launched in October 2011. A number of Chinese companies are also expected to join the Programme, in which over 50 leading companies and organisations from more than 25 countries and representing over 30 sectors are already engaged. The inclusion of further emerging market organisations is seen as an important strengthening of the Programme, which will focus on developing, testing and refining principles and practicalities of Integrated Reporting during a two-year cycle. Discussions have also been ongoing with a number of Korean companies who plan to join the Programme.

Other activities planned in 2012 include the launch of a Global Stakeholder Forum, with membership open to all organisations that support the IIRC’s work towards an overarching Integrated Reporting Framework. The Forum will facilitate the exchange of views on relevant major policy and technical issues, including issues related to long-term governance.

Commenting on the developments, Mervyn King, Chairman of the IIRC states: “We are excited by the response, participation and commitment we have received from companies, associations, investors, and others from around the globe that have joined us in this journey. They support the IIRC in the realization that corporate reporting needs to be redefined as a mechanism for companies to report on how they create sustained value for shareholders, investors and other stakeholders.”

A number of steps were taken to put in place new, transitional governance arrangements, marking the move from the initial ‘start-up’ phase of work, to the consultation and development work taking place over the next two years. The IIRC will be supported by an executive board and secretariat. Christy Wood (Chairman of the Board of Governors, International Corporate Governance Network) was appointed as Deputy Chairman.

The secretariat will operate through a not-for-profit company established for the purpose under the same name. The company’s board will comprise Mervyn King, as Chairman and the IIRC’s Deputy Chairmen, together with Ian Ball (Chief Executive, International Federation of Accountants), Jessica Fries (Director, The Prince’s Accounting for Sustainability Project), Ernst Ligteringen (Chief Executive, Global Reporting Initiative) and the IIRC’s Chief Executive, Paul Druckman.

A Governance Committee will also be established, with responsibilities relating to audit, nominations and remuneration.

Paul Druckman, Chief Executive of the IIRC states: “The IIRC is evolving in a dynamic way that enables us to extend our reach still more effectively. That in turn can only contribute to the value and impact of the guidance we are generating. The momentum we have is indicative not only of how far we have come in the short time since our launch in August 2010, but also of our ambitions for where we want to get over the next two years and beyond.”

16th November 2011