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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?
Who AccountAbility Works With
