ReportingNZ – CPA Congress 2016 Panel discussion: Integrated reporting: Changing the corporate mind-set from one of compliance to it becoming a business imperative. Wendy McGuinness, 18 October 2016

Contributing to an informed society

‘Ongoingeconomichardshipinmanypartsoftheworld,includingthelong-termeffectsofac:onstakentostabilizethefinancialsystemimmediatelyfollowingthecrisis,hasemphasizedthedividebetweenthe“haves”andthe“havenots.”This,combinedwiththepublic’sobserva:onthatthepeoplewhosebehaviorscausedthecrisishavenotbeenheldaccountable,hasresultedinconsiderablepoli:calunrestincludingmovestowardwhatseemlikemoreextremepoli:calnarra:vesandchoicesacrossthedevelopedworld.’

Latest Report October 2016

Theorganisa:onsthat:1.  Promoteandsellsharesandother

instrumentstomembersofthepublic

2.  Usepublicfunds3.  Employalargenumberofpeople4.  Useandpollutepublicassets5.  Havealargenumberofsmall

shareholders(e.g.SouthernCrossandIwiorganisa:ons)

6.  Areoverseas-ownedserviceprovidersandbuyersofstrategicassets

7.  AreindustrygroupsandNGOsthatpromoteideasandlobbyofficials

8.  Policethelegisla:onandguidelines–theregulators

Who do the public rely on?

$0

$20,000,000,000

$40,000,000,000

$60,000,000,000

$80,000,000,000

$100,000,000,000

$120,000,000,000

$140,000,000,000

$160,000,000,000

$180,000,000,000

TotalofallDeloi`eTop200Companies(2015)

GovernmentofNewZealand(30June2016)

Revenu

e($)

Total Revenue

$0

$50,000,000,000

$100,000,000,000

$150,000,000,000

$200,000,000,000

$250,000,000,000

$300,000,000,000

$350,000,000,000

TotalofallDeloi`eTop200Companies(2015)

GovernmentofNewZealand(30June2016)

TotalA

ssets($)

Total Assets

Deloi3e2015Top200CompaniesThiscomparesthe2015Deloi`eTop200companieswiththe

NZSXAllSecuri:esasat14October2016

Deloi`eTop200companieslistedontheNZSX

Deloi`eTop200companiesnotlistedontheNZSX

27.5%

72.5%

[GDS001]Opportunities & Threats

Approach & Focus

Alignment& Authority

Capabilities& Resources

Implementation& Accountability

Vision & Benefits

This GDS’s score Average GDS scoreAverage sector score

4

8

12

16

Improving strategy reporting

ForesightNZ playing cards See www.foresightnz.org.

Possible ways forward •  RequireallNZSXcompaniesandgovernmentdepartmentstopublishextendedfinancialreports

by2020;providinginforma:ononforesight,strategyandchangesinthefourcapitals(economic,natural,socialandhuman).

•  ExpandtheCompaniesOfficeroletomakeitresponsibleforregisteringtheannualreportsofallNewZealandorganisa:ons(andbecomeaone-stopshopforthepublic).

•  Requireallgovernmentdepartmentstopublishalistoftheirstrategydocumentsintheirannualreportsandforaregistertobemadeavailabletothepublicofallgovernmentdepartmentstrategydocuments.

•  RequireallsignificanthealthandsafetyincidentstobepublishedbothintheannualreportandintheCompaniesOfficeregister.

•  Requireallsignificantenvironmentalincidentsandsubsequentpenal:estobepublishedinboththeannualreportandtheregisterattheCompaniesOffice.

•  Requireorganisa:onsthatuseandpollutesignificantpublicresourcestoreportonthatuseandpollu:onandexplainintheirannualreporthowthoseimpactswereandwillbemanagedgoingforward.

•  RequiretheCompaniesOfficetoclearlyrecordthe‘ul:mateholdingcompany’intheregisterandspecifythestockexchangeboard/sthecompanyislistedon–thiscouldhappenwhenthecompanyuploadsitsannualreport.

•  RequiretheCompaniesOfficetospecifyasearchableformatforalldocuments(sothatthepubliccansearchacompany’srecords).

Thank you

Wendy McGuinness

McGuinness Institute Level 2, 5 Cable Street, PO Box 24222, Wellington 6142, New Zealand