The Network for Responsible Business

Welcome to the Quarter 1 Network meeting

Hosted by

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Agenda

• Network Updates

• Communicating Long Term Value

– Sample framework and international examples

– Integrated Reporting

• Conference discussion groups

– Your definition of a best in class event

Network Updates

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New Members

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Diageo Ireland are Awarded Corporate Philanthropist of the Year by our Sister Organisation - The Community Foundation for Ireland

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The year ahead

• Appointment of Charity Regulator

• EU vote on Directive for Integrated Reporting

• CSR Europe – CEO-level meeting on 20th March to set future priorities

• Conclusion of UN Decade of Education for Sustainable Development

• Chambers’ CSR awards

– opening date for submission 4th March

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Network Updates

• CSR National Action Plan: – Approved by Cabinet 28th January

– CSR Baseline Survey – lead by NSAI in partnership with BITCI; Department of Jobs, Enterprise and Innovation; Waterford Institute of Technology

– Business led Forum

• New services: – Sustainable procurement training

– Environmental workshops

– Scoping Working Group on Integrated Reporting

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2014 Events Programme

• 21 events plus Conference

– Network meetings (Dublin & Cork)

– Training workshops:

• Strategic Community

• Change Management Tools

• Environment

– Business Working Responsibly Info sessions

– Work Placement Seminar - Accenture

– Business Impact celebration – A&L Goodbody

– CEO Networking Event

Communicating Long Term Value

Metrics • Set clear targets • Provide regular updates • Engage in honest

communications about performance against targets– good and bad

Framework

Materiality • Recognise global

challenges and understand their role

• Feature Sustainability as a cornerstone of business strategy

• Actively seek Sustainability opportunities

Stakeholder Engagement • Identify key stakeholders • Engage in public debate • Showcase critical voice • Build credible

partnerships

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Companies that Communicate well….

Use reporting as the basis for a campaign not the campaign itself

Engage in Open Debate

Showcase Stakeholder Voice

Communicate regularly

Tailor to their audiences

Use a Variety of Channels

ESG Investor Briefing, 2013

Responsible Economy Campaign

The Network for Responsible Business

Overview of IIRC Integrated Reporting

Framework

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Communicating How the Organisation Creates Value Over Time

“… a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term…”

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The picture: value creation over time

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Background/Timeline

• 1993 – 2010 – South African moves on integrated reporting • 2009 The Prince of Wales convened investors, standard setters,

companies, accounting bodies and UN representatives to establish the IIRC, a body to oversee the creation of a globally accepted International Integrated Reporting Framework.

• Includes: International Federation of Accountants; Global Reporting Initiative

• 2010 – discussion paper • 2011 - IIRC Pilot Programme launched. 90 member companies • April 2013 – Consultation Draft • December 2013 - The International <IR> Framework . • MoUs with Carbon Disclosure Project, Climate Disclosure Standards

Board, ACCA, US-based Sustainability Accounting Standards Board, International Accounting Standards Board,

• Pilot programme ongoing to September 2014

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More than financials

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Analyst confidence – the Coloplast Experiment

Buy

Sell

1st team studied Coloplast’s ‘full report’ 2nd team studied a stripped version ‘financial report’

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Noteworthy

• IIRC Vision: “The cycle of integrated thinking and reporting, resulting in efficient and productive capital allocation, will act as forces for financial stability and sustainability.”

• Benefits: Communicating versus complying; reporting intangibles; breaking down silos; increasing transparency

• Key audience: providers of financial capital

• Key users: primarily in the context of private sector, for-profit companies of any size but it can also be applied, adapted as necessary, by public sector and not-for-profit organizations.

• Demonstrates accountability and stewardship over capitals (financial, manufactured, intellectual, human, social and relationship and natural) – not just financial capital

• Demands integrated / connected thinking and actions from a company: more than a summary of other information

• “Warts and all” disclosures; material issues;

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An <IR> will consider…

Creating Value Over Time

Contents Principles

Capitals

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The capitals

• Resources and relationships - stocks of value that are increased, decreased or transformed through the activities and outputs of the organization.

• Six named but this categorisation not required

• Financial, manufactured, intellectual, human, social and relationship, and natural capital

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Principles-based

• Does not prescribe specific key performance indicators, or measurement methods

• Oriented to the company’s ability to create value over time A Strategic focus and future orientation B Connectivity of information C Stakeholder relationships D Materiality E Conciseness E Reliability and completeness F Consistency and comparability

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Content Elements

• Not necessarily in this order nor using these words as long as connections clear A Organizational overview and external environment B Governance C Opportunities and risks D Strategy and resource allocation E Business model F Performance G Future outlook H Basis of preparation and presentation and in doing so, takes account of: I General reporting guidance

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The picture: value creation over time

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Content / Principles

A. Organizational overview and external environment

B. Governance C. Opportunities and risks D. Strategy and resource

allocation E. Business model F. Performance G. Future outlook H. Basis for preparation

A. Strategic focus and future orientation

B. Connectivity of information C. Stakeholder relationships D. Materiality E. Conciseness F. Reliability and completeness G. Consistency and

comparability

Six capitals: Financial, manufactured, intellectual, human, social and relationship, and natural capital

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Integrated Reporting in Ireland / Examples

• Pilot companies and investors – database on www.iirc.org

• Trial to September 2014 on the use of integrated reporting framework and its outcomes

• No fixed formulas

• Member company Group reports: BAM; Deloitte; KPMG; Marks & Spencer Group plc; Microsoft; PepsiCo; PwC; Telefonica; Coca-Cola;Intel Corporation;

• Other Irish examples? DCC plc;

• KPMG site: www.kpmg.com

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Eamonn Russell, Partner, Audit,

KPMG

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Call to action

• Business in the Community Ireland would like to hear from minimum of six companies that are interested in forming a working group around the guidelines

• Keen to involve your relevant colleagues –e.g. from Finance Department

• Please use the form in your packs to indicate your details and which aspect of integrated reporting would be of interest to work through

• Submit interest by Friday February 14th at 5pm

Conference 2014

• Thursday November 6th-Dublin Castle

• One day-300 delegates-CEO Breakfast Forum, Plenaries and Workshops

Conference 2014: Discussion

• What one thing would make for an historic conference in Dublin Castle? – Who would you hear from?

– What issues would be discussed?

• Who do we need to get into the room? What would make your colleagues come?

• What one thing/key information would help you in your work?

• What one thing/key information would you like to bring to your CEO?

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