1. Integrated Reporting Dr Jack Christian PhD MBA ACMA MCIM PGCE
Manchester Metropolitan University Business School

2. Challenges facing business Creating value Telling a story
Integrated Reporting
Overview:
A brief history
Challenges facing business
Creating value
Telling a story
Guiding principles
Content and presentation
Global management accounting principles
Going forward

3. Environmental management accounting The Triple Bottom Line
Integrated Reporting
A brief history:
A finite Earth
Our Common Future
Environmental management accounting
The Triple Bottom Line
The UN Global Compact
The Global Reporting Initiative
Stakeholder Engagement

4. Challenges facing business Creating value Telling a story
Integrated Reporting
Overview:
A brief history
Challenges facing business
Creating value
Telling a story
Guiding principles
Content and presentation
Global management accounting principles
Going forward

5. Challenges facing business Creating value Telling a story
Integrated Reporting
Overview:
A brief history
Challenges facing business
Creating value
Telling a story
Guiding principles
Content and presentation
Global management accounting principles
Going forward

6. Challenges facing business Creating value Telling a story
Integrated Reporting
Overview:
A brief history
Challenges facing business
Creating value
Telling a story
Guiding principles
Content and presentation
Global management accounting principles
Going forward

7. Challenges facing business Creating value Telling a story
Integrated Reporting
Overview:
A brief history
Challenges facing business
Creating value
Telling a story
Guiding principles
Content and presentation
Global management accounting principles
Going forward

8. A finite Earth

9. Our Common Future
In 1987the United Nations World Commission on the Environment and Development commissioned the “Our Common Future” report (sometimes know as the Brundtland Report). This Report defined Sustainable Development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

10. Environmental management accounting?
According to Van der Veen (2000) it began in the USA in the 1980s with a view to ascertaining costs and benefits of pollution control
Van der Veen defines it as “the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of financial and non-financial information used by management to plan, evaluate and control the environmental aspects of an organisation.”
When I started research I was surprised to find EMA had a 30 year history. I only heard of it 2 or so years ago although it has become more widely known lately

11. The Triple Bottom Line
Silent Spring
The Middle East Wars
Dhopal

12. The UN Global Compact
What is the UN Global Compact? “ The Global Compact asks companies to embrace universal principles and to partner with the United Nations. It has grown to become a critical platform for the UN to engage effectively with enlightened global business.” – UN Secretary-General Ban Ki-moon

13. The Global Reporting Initiative
“the successful company of tomorrow will have an integrated strategy to achieve financial results and create lasting value for itself, its stakeholders and society.”
however
“a focus on a single bottom line cannot offer sufficient assurance that a company will survive, or help it innovate for future improvements and success”
Going beyond the single bottom line of profitablity

14. Stakeholder Engagement
The AA1000 Series of Standards is based on the principles
of:
Inclusivity - people should have a say in the decisions that impact on them
Materiality - decision makers should identify and be clear about the issues that matter
Responsiveness - organizations should act transparently on material issues

15. Integrated Reporting Trust Connectivity Complexity Long term focus
The challenges facing businesses:
Trust
Connectivity
Complexity
Long term focus
Communication P4
Also notes on intangible assets – p14

16. Integrated Reporting
Helps by:
Creating value
Telling the story

17. Tuning into the external environment
Integrated Reporting
Creates value by:
Tuning into the external environment
Using this intelligence to inform strategy and decision making
Focusing on a longer term time horizon
Building this thinking into the implementation of the business model
List some of challenges/opportunities – p10
Link to governance – ext slide

18. Integrated Reporting Law Ethics Guidance Insight Governance:
Law – p11 and p28
Ethics – p11
Guidance – pp
Insight – p11

19. Tuning into the external environment
Integrated Reporting
Creates value by:
Tuning into the external environment
Using this intelligence to inform strategy and decision making
Focusing on a longer term time horizon
Building this thinking into the implementation of thebusiness model

20. Integrated Reporting Inputs Business activities Outputs Outcomes
The Business Model:
Inputs
Business activities
Outputs
Outcomes
Unilever
Integrated Thinking – pp6-7

21. Social and relationship
Integrated Reporting
The Capitals:
Financial
Manufacture
Human
Intellectual
Natural
Social and relationship
Prototype framework 2.14
Reports should note any material changes

22. Integrated Reporting Investors Employees Other Stakeholders
Tells a story to:
Investors
Employees
Other Stakeholders
Quote on p13
Investors pp 15 – 19
Employees p20
Others p21

23. Strategic focus and future orientation Connectivity of information
Integrated Reporting
Guiding principles:
Strategic focus and future orientation
Connectivity of information
Stakeholder relationships
Materiality
Conciseness
Reliability and completeness
Consistency and comparability
Principles based approach with senior management and those charged with governance left to exercise judgement to determine what is material
Also note the report is aimed at investors as it is assumed that the interests of society and long term investors are congruent.
p26

24. Organizational overview and external environment Governance
Integrated Reporting
Content:
Organizational overview and external environment
Governance
Business Model
Risks and opportunities
Strategy and resource allocation
Performance
Outlook
Basis of presentation
Reports suitable to all sizes and types of business and supplementary to legal requirements
p27

25. Integrated Reporting Materiality Frequency Time frames Boundaries
Preparation:
Materiality
Frequency
Time frames
Boundaries
Aggregation
Signatories
Technology
Assurance
Section 5 of principles

26. Integrated Reporting What is our definition of value
Going forward:
What is our definition of value
What is our business model
How do our decisions impact on it
How does it create value
What is special about our organization
What changes are likely in our business environment
Do we need to/can we adapt
Can we see any opportunities
Do our information systems/KPIs fully inform us of all impacts

27. Integrated Reporting To what extent are we trusted
Going forward:
To what extent are we trusted
Does this differ by stakeholder group
Can we describe our business model and value
creation process adequately
Do our stakeholders understand our description
Which functions are involved in reporting
Do they work together
How do we assess our performance
Have we missed anything

28. Integrated Reporting Going forward The Oxfam Doughnut
The United Nations Sustainable Development Goals
A reminder of what is at stake.