The Global Reporting Initiative (GRI) and the International Integrated Reporting Council (IIRC) announced an agreement on March 1 that will see the two organizations deepen their cooperation to transform the future of corporate reporting.
The Memorandum of Understanding (MoU), signed by GRI Chief Executive Ernst Ligteringen and IIRC Chief Executive Officer Paul Druckman, demonstrates the common interest of both organizations in enhancing the reach, quality and consistency of global corporate reporting in order to deliver value to investors and other stakeholders.
Both organizations share a common view of the evolution of corporate reporting – one in which Integrated Reporting and Sustainability Reporting play a vital and complementary role.
GRI Chief Executive Ernst Ligteringen said, “Integrated Reporting is a powerful lever to mainstream sustainability disclosure where it relates to a company’s ability to create and sustain value.”
“Investors are increasingly recognizing that the value of an organization goes far beyond its financial statements. To truly assess and articulate value, a company must demonstrate that it has an integrated and sustainable strategy encompassing all of its capital – including its people, the natural resources it uses, and the integrity of its supply chain.”
“By presenting the link between a company’s financial management and its social and environmental capital, Integrated Reporting provides a key opportunity to articulate the value of integrated thinking, demonstrating to investors and other stakeholders that business interests can only be enhanced by embracing a sustainable future.”
IIRC Chief Executive Paul Druckman said, “This MoU cements the relationship and prepares us for the next phases of our work: the delivery of the Integrated Reporting Framework and then its implementation. We have been working to help create a better reporting environment that will generate benefits for businesses, investors and the wider economy. We want to end the cycle of compliance reporting and focus on what is most relevant to the creation of value and the execution of business strategy.”
The IIRC is working to create the globally accepted International Integrated Reporting Framework. Rather than seeking to create new indicators, the framework will encourage organizations to make use of existing reporting standards and guidelines, such as GRI’s Sustainability Reporting Guidelines.
In April 2013, the IIRC will publish the Consultation Draft of the International Integrated Reporting Framework. The consultation will take place between 16 April and 15 July and the Framework itself will be released in December 2013.
In May 2013, GRI’s Global Conference in Amsterdam will see the launch of the next generation of the GRI Guidelines – G4. It will also provide an opportunity to debate how Integrated Reporting and Sustainability Reporting are related.
1. The IIRC’s mission is to create the globally accepted International Framework that elicits from organizations material information about their strategy, governance, performance and prospects in a clear, concise and comparable format. The International Framework will underpin and accelerate the evolution of corporate reporting, reflecting developments in financial, governance, management commentary and sustainability reporting. The IIRC will seek to secure the adoption of by report preparers and gain the recognition of standard setters and investors.
2. The Global Reporting Initiative (GRI) promotes the use of sustainability reporting as a way for organizations to become more sustainable and contribute to a sustainable global economy. GRI’s mission is to make sustainability reporting standard practice. To enable all companies and organizations to report their economic, environmental, social and governance performance, GRI produces free Sustainability Reporting Guidelines. GRI is a not-for-profit, network-based organization; its activity involves thousands of professionals and organizations from many sectors, constituencies and regions. For more information, visit www.globalreporting.org.
3. The MoU is available here.