We had a great turnout on 11th February at Business in the Community Ireland's first Member Network Meeting of 2014, kindly hosted by KPMG, at their offices in 1 Stokes Place, St. Stephen’s Green, Dublin 2. The topic of discussion at the meeting was how can companies communicate their long-term value to shareholders and to society. You can find the slides in the link provided. If you have any questions on what was discussed please feel free to leave a comment and start the conversation! Was there anything from the event that resonated with you that you would like to share with the group?

1. Welcome to the
Quarter 1 Network meeting
Hosted by
The Network for Responsible Business

2. 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
2

3. Network Updates

4. New Members
4

5. Diageo Ireland are Awarded Corporate Philanthropist
of the Year by our Sister Organisation The Community Foundation for Ireland
5

6. 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
6

7. 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
7

8. 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
8

9. Communicating Long Term Value

10. 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
Metrics
• Set clear targets
• Provide regular updates
• Engage in honest
communications about
performance against
targets– good and bad

11. 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
11

15. ESG Investor Briefing, 2013

16. Responsible
Economy
Campaign

18. Overview of
IIRC Integrated Reporting
Framework
The Network for Responsible Business

19. 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…”
19

20. The picture: value creation over time
20

21. 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
22

22. More than financials
23

23. Analyst confidence – the Coloplast Experiment
1st team studied Coloplast’s ‘full report’
2nd team studied a stripped version ‘financial report’
Buy
Sell
24

24. 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;
25

25. An <IR> will consider…
Principles
Contents
Creating Value
Over Time
Capitals
26

26. 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
27

27. 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
28

28. 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
29

29. The picture: value creation over time
1
3
2
3
6
1
4
5
2
32
1

30. 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
33
relationship, and natural capital

31. 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
34

32. Eamonn Russell, Partner, Audit,
KPMG
38

33. 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
39

34. Conference 2014
• Thursday November 6th-Dublin Castle
• One day-300 delegates-CEO Breakfast Forum,
Plenaries and Workshops

35. 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?

36. Feedback and Close