Approach to IR (the IIRC version)

Integrated reporting is a process that results in communication, most visibly a periodic “integrated report”, about value creation over time. An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term.

An integrated report should be prepared in accordance with six Guiding Principles:

IStrategic focus and future orientation: An integrated report should provide insight into the organization’s strategy, and how that relates to its ability to create value in the short, medium and long term and to its use of and effects on the capitals.

IIConnectivity of information: An integrated report should show, as a comprehensive value creation story, the combination, inter-relatedness and dependencies between the components that are material to the organization’s ability to create value over time.

IIIStakeholder responsiveness: An integrated report should provide insight into the quality of the organization’s relationships with its key stakeholders and how and to what extent the organization understands, takes into account and responds to their legitimate needs, interests and expectations.

IVMateriality and conciseness: An integrated report should provide concise information that is material to assessing the organization’s ability to create value in the short, medium and long term.

VReliability: The information in an integrated report should be reliable.

VIComparability and consistency: The information in an integrated report should be presented in a way that enables comparison with other organizations to the extent it is material to the reporter’s own value creation story, and on a basis that is consistent over time.

An integrated report should include all the following Content Elements, answering the respective question posed for each one:

IOrganizational overview and operating context: what does the organization do and what are the circumstances under which it operates?

IIGovernance: what is the organization’s governance structure, and how does it support the organization’s ability to create value in the short, medium and long term?

IIIOpportunities and risks: what are the key opportunities and risks that the organization faces?

IVStrategy and resource allocation plans: where does the organization want to go and how does it intend getting there?

VBusiness model: what are the organization’s key inputs, value-adding activities and outputs by which it aims to create value over the short, medium and long term?

VIPerformance and outcomes: how has the organization performed against its strategy and what are the key outcomes resulting from its activities?

VIIFuture outlook: what opportunities, risks, challenges and uncertainties is the organization likely to encounter in pursuing its strategy, and what are the potential implications for its business model and its future performance and outcomes?

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