An Introduction to the AA1000 Series - CSRinfo...NFC - Oyster Near Field Communication...

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PREPARED FOR

An Introduction to the AA1000

Series

AA1000 AccountAbility Principles Standard (2008)

AA1000 Assurance Standard (2008)

AA1000SES Stakeholder Engagement Standard

(under revision)

AccountAbility's AA1000 series are principles-based standards to help organizations become more

accountable, responsible and sustainable.

Over 150 companies worldwide are using the AA1000AS for their sustainability reports. For

more details on the standards, please visit http://www.accountability.org/aa1000series.

Our standards: AA1000 APS (2008)

The AccountAbility Principles Standard (AA1000APS 2008) provides

a framework for an organisation to identify, prioritise and respond to

its sustainability challenges.

The AA1000 Principles:

Inclusivity is the participation of stakeholders in developing and

achieving an accountable and strategic response to sustainability.

Materiality is determining the relevance and significance of an issue

to an organisation and its stakeholders.

Responsiveness is an organisation’s response to stakeholder

issues that affect its sustainability performance.

To download this standard please visit the website

http://www.accountability.org/aa1000aps

Our standards: AA1000 AS (2008)

The AccountAbility Assurance Standard (AA1000AS 2008)

provides a methodology for assurance practitioners to evaluate

the nature and extent to which an organization adheres to the

AccountAbility Principles and provide conclusions on:

Type 1: The nature and extent of adherence to the AA1000

AccountAbility Principles, and

Type 2: The nature and extent of adherence to the AA1000

AccountAbility Principles as well as the quality of the information

publicly disclosed on sustainability performance.

The standard outlines 15 criteria to be included in assurance

statements.

To download this standard please visit

http://www.accountability.org/aa1000as

Our standards: AA1000 SES (under revision)

AA1000 SES is currently undergoing revision to reflect the

evolving nature of engagement (see diagram below).

The schedule for the revision process is as follows:

The Stakeholder Engagement Standard is expected to be published later this summer. For more

details on the AA1000 SES revision process, please visit our site at:

http://accountabilityaa1000wiki.net/

Standards Related Services

Assurance Provider Licensing: Licensing is mandatory for all commercial use of AA1000AS

(2008). A license agreement can be downloaded from www.accountability.org.

Training: In collaboration with IRCA, AccountAbility has developed a five day training program to

support application of the AA1000 Series of Standards. Completion of this course counts towards

the Sustainability Assurance Practitioner Certification

Certification for Sustainability Assurance Practitioner (CSAP): In collaboration with IRCA,

AccountAbility has developed the Certification for Sustainability Assurance Practitioner (CSAP)

program, and is the first internationally recognised professional qualification in the field of

sustainability assurance.

Assurance Provider Membership: AccountAbility has established a Sustainability Assurance

provider membership program to provide a home for the assurance provider community.

Financial Reporting Goes Global

FINANCIAL REPORTING

SUSTAINABILITY REPORTING

INTEGRATED REPORTING = ‘MERGING’ OF FINANCIAL AND NON-FINANCIAL INFORMATION

MATERIALITY IS KEY Relevance, Decision Making,

Stakeholders

Business Model

Pros and Cons

© Colcomgroup 2009

SUSTAINABILITY

The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

World Commission on Environment and Development (The Bruntland Report)

Financial

Complexity

Meaningful narrative

information

Reporting on risk, executive

compensation and corporate

governance

Auditing for fraud

Nonfinancial

Lack of standards

Lack of common terminology

Definition of “materiality”

Underdeveloped audit

methodologies

Controversial role of the Global

Reporting Initiative

Competing standard setters

EXTERNAL REPORTING CHALLENGES

16

EBR Framework Version 2.0 XBRL taxonomy has been developed

Business Landscape

Business Landscape

Summary

Economic

Industry Analysis

Technological

Trends

Political

Legal

Environmental

Social

Strategy Corporate Strategy

Summary

Vision & Mission

Strengths

Weaknesses

Opportunities

Threats

Goals & Objectives

Corporate Strategy

Business Unit Strategy

Resources & Processes

Resources & Processes Summary

Resource Form

- Monetary Capital - Physical Capital - Relationship (Social) Capital - Organizational (Structural) Capital - Human Capital

Key Processes

- Develop Vision & Strategy

- Manage Internal Resources

- Manage Products & Services

- Manage External Relation-

ships

Performance Performance Summary

GAAP-Based

GAAP-Derived

Industry-Based

Company-Specific

Capital Market-Based

- Manage Governance and

Business Portfolio Risks

Financial Reporting Goes Global

HITS

Green Reporting 37 37 Million

CSR Reporting 14 Million

Environmental Reporting 9.6 Million

Integrated Reporting 9.1 Million

Sustainability Reporting 6.5 Million

ESG Reporting .25 Million

8

Tagging of Financial Data (Objects)

valued at Location and Time

RFID - Radio

Frequency

NFC - Oyster Near Field

Communication

Identification

<CurrentAssets> 5329000000 </CurrentAssets> <CurrentAssets contextRef="End_2004" unitRef="EUR"> 5329000000 </CurrentAssets>

Time Unit

Financial Reporting Goes Global

Validation

Standardization

ADDING MEANING TO ELECTRONIC DATA

Calculation Cash = Currency +

Deposits

Formulas Cash ≥ 0

Contexts

US $ FY2004

Budgeted

Label cashCashEquivalentsAndS

hortTermInvestments

References GAAP I.2.(a) Instructions

Ad Hoc disclosures

Presentation Cash & Cash Equivalents

XBRL Item XBRL Item

Presentation Comptant et Comptant

Equivalents

Presentation

Geld & Geld nahe Mittel

Presentation

Kas en Geldmiddelen

Presentation

现金与现金等价物

XBRL – The Electronic Language of Financial and Business Reporting

SUPPORT

ONE REPORT

ONE DATA SET

Accountants

Attorneys

Other External Advisors

DASHBOARDS & OUTPUT

Other Stakeholders (e.g., Board, Investors, Regulators)

Accountants

Attorneys

Other External Advisors

Management Teams (CEO, CFO/Finance, Operations, Sales & Marketing, IR)

Access Controls and Permissioning

THE CLOUD

One Integrated Reporting Process Management Teams (CEO, CFO/Finance, Operations, Sales &

Marketing, IR)

Objects can be broken down into the following business/financial reporting

areas:

•People

(number of people x rates benefits, etc)

•Tangible assets and infrastructure

(number of cash-generating units x fair value, value in use)

•Products and Services

(Stock-keeping units x price)

•Financial assets and liabilities

(contracts, currency units x fair value)

•Intangibles and Communication

(identifiable units x fair value)

Deutsche Bank Annual Report

2009 Beiersdorf BDF - NIVEA

Of particular interest is the asset level of

Deutsche Bank, which has fallen by nearly

a trillion US Dollars from $3.1 trillion in 2008,

to $2.2 trillion in 2009. Remarkably, there is

no reasonable explanation provided in the

annual report or other pronouncements for

such a significant reduction. This is

indicative of weak accounting regulations in

that a size-able bank can avoid any

justification for a more than obvious drop in

its assets.

Download full article @:

http://www.accountability.org/about-us/publications/natural-capital.html

Natural Capital: The Finance Sector & Financial Reporting –

Catalysing Action?

TODAY’S SPEAKER: KURT RAMIN, DIRECTOR OF STANDARDS

kurt@accountability.org

Who AccountAbility Works With