We aspire to adopt Integrated Reporting practices in an increasingly foundational way. JLL participated as a pilot company in the International Integrated Reporting Council (IIRC) and we now sit on the <IR> Business Network.
For some time, we have taken a collaborative approach to governance, strategy and enterprise risk management. However, our shift to adopting the principles of <IR> has enabled us to take a more holistic assessment of how these components, and others more broadly, help to influence and drive value within our business. This means that sustainability is becoming a more integral part of the way that we think and how we operate, making us a more resilient organisation.
Long-term risks and opportunities based on the <IR> Framework
In order to progress our Integrated Reporting journey, we undertook a project in 2014 that identified and investigated a number of medium to long-term global megatrends with the greatest potential to impact our business. In line with the advice from the <IR> Framework, this review had a strong focus on non-financial trends as potential long-term challenges. We used the IIRC’s ‘six capitals’ model to identify a wide range of trends across each capital (financial, human, manufactured, intellectual, social and natural). This helped us to identify where and how different trends interact with one another.
Following from this, we drew up an initial list of 36 trends identified through desktop research, a review of what our peers deem to be material and interviews with 26 JLL executives from across the business. Through the prioritization of these trends, we produced a qualitative assessment of 21 trends that illustrated the greatest risks and opportunities posed to JLL. Our Internal Audit team were engaged to develop a quantitative assessment that was used to rank the trends by impact and likelihood with a weighted average applied to how trends affect our services to clients and our internal operations.
The qualitative and quantitative assessments were then summarized in a materiality matrix that shows JLL’s long-term risks and opportunities across all six capitals. This list will form the basis of our <IR> activities going forward, as well as our sustainability strategy more broadly.
JLL links to key <IR> insights
The effect of Integrated Reporting on the value creation story and connectivity
Erin Nahumyk, Director of Accounting Policy and Sarah Nicholls, Head of Global Corporate Sustainability at JLL discuss how Integrated Reporting helps them tell the company’s value creation story, and how implementing Integrated Reporting has helped the connectivity within JLL.
Read JLL’s Annual Integrated Report 2019 here.
Read JLL’s recent Annual Integrated Reports here.
JLL is a Fortune 500 professional services and investment management firm specializing in real estate. JLL offers integrated services worldwide to clients seeking increased value by owning, occupying, developing or investing in real estate. JLL serves clients in more than 80 countries providing local, regional and global real estate needs through our workforce of more than 58,000 people.