Charles Tilley, CEO of International Integrated Reporting Council (IIRC)’s Foreword
Our Chair Emeritus at the International Integrated Reporting Council (IIRC), Mervyn King once said, and I quote, that “business is a part of society, not apart from society”.
This has never been more true than this year, where businesses’ resilience across the world have been strongly tested in the wake of the COVID-19 pandemic. Almost overnight organisations have needed to reprioritise the health and safety of their employees, customers and clients and local communities over their financial profit. They have had to rework their business models and strategies to reflect that.
With intangible, referring to non-financial, assets now making up 90% of market value in the S&P 500, businesses need to show their stakeholders that they create value and report on not just financial capitals but also intellectual, environmental, manufactured and human capitals to name a few. This is where integrated reporting can support organisations.
The International <IR> Framework helps organisations to gain a holistic view of their business by providing a clear overview of all their capitals, which is geared towards long-term value creation. Transparency of KPIs and culture can lead to enhanced trust in businesses,
especially where this is balanced by honesty about performance and impact.
I am pleased to read in Grant Thornton Bharat’s report on integrated reporting in India that 75% of the respondents believe that integrated reporting will help improve corporate reporting in their organisations. The case studies also underline the growing adoption of the International <IR> Framework in India. These are very good examples of the tangible benefits organisations can experience when adopting integrated reporting, which leads to financial stability and sustainable development where all can benefit and prosper.
Read the report in full here.