International Integrated Reporting Council (IIRC)
The International Integrated Reporting Council (IIRC) (previously the International Integrated Reporting Committee) was formed in August 2010 and aims to create a globally accepted framework for a process that results in communications by an organisation about value creation over time.
The IIRC brings together a cross section of representatives from corporate, investment, accounting, securities, regulatory, academic and standard-setting sectors as well as civil society. It comprises a Steering Committee, a Working Group and a three taskforces (dealing with content development, engagement and communications, and governance).
The IIRC is chaired by Professor Mervyn King, Chairman, King Committee on Corporate Governance and Former Chairman, Global Reporting Initiative. Membership includes Hans Hoogervorst (IASB Chairman), Leslie Seidman (FASB Chairperson), Maria Helena Santana, (Chairperson, IOSCO Executive Committee), Göran Tidström (IFAC President), Jim Quigley (former global Chief Executive Officer of Deloitte), and many others. Paul Druckman is Chief Executive Officer.
November 2011 restructure
In November 2011, the IIRC announced a number of changes to its organisational structure. Under the new arrangements, an initial transitional phase until the end of 2013 will see the IIRC supported by a strengthened secretariat operating through a not-for-profit company established for the purpose under the same name.
The company's board will comprise Mervyn King as Chairman, Leslie Ferrar (Treasurer, Household of the Prince of Wales and the Duchess of Cornwall) and Christy Wood (Chairman of the Board of Governors, International Corporate Governance Network) as Deputy Chairs, together with Ian Ball (Chief Executive, International Federation of Accountants), Ernst Ligteringen (Chief Executive, Global Reporting Initiative), Jessica Fries (Director, The Prince's Accounting for Sustainability Project) and the IIRC's Chief Executive, Paul Druckman.
A Governance Committee has also been established, with responsibilities relating to audit, nominations and executive remuneration for the company.
The IIRC's objective
The IIRC's stated objective is to develop an internationally accepted integrated reporting framework by 2014 to create the foundations for a new reporting model to enable organisations to provide concise communications of how they create value over time. The IIRC refers to this process as Integrated Reporting, which it stylises as <IR>.
<IR> which is concise, clear, comprehensive and comparable, structured around the organisation's strategic objectives, its governance and business model and integrating both material financial and non-financial information.
The objectives for an integrated reporting framework are to:
- support the information needs of long-term investors, by showing the broader and longer-term consequences of decision-making
- reflect the interconnections between environmental, social, governance and financial factors in decisions that affect long-term performance and condition, making clear the link between sustainability and economic value
- provide the necessary framework for environmental and social factors to be taken into account systematically in reporting and decision-making
- rebalance performance metrics away from an undue emphasis on short term financial performance
- bring reporting closer to the information used by management to run the business on a day-to-day basis.
The IIRC published its Consultation Draft of the International <IR> Framework on 16 April 2013. The Consultation Draft is open for comment until 15 July 2013 and the IIRC expects to finalise the first version of its framework by the end of 2013.
A history of developments is summarised below:
|12 September 2011||Discussion Paper Towards Integrated Reporting – Communicating Value in the 21st Century published||Comment deadline 14 December 2011|
|October 2011||Initial organisations participating in the IIRC Pilot Programme announced||The Pilot Programme is a two-year programme for a group of companies who will work as a network of peer group organisations, exchanging knowledge and sharing experiences on integrated reporting.|
|July 2012||Draft Outline of the Integrated Reporting Framework||Not part of the formal consultation process, but the IIRC welcomed feedback|
|November 2012||Prototype of the International Integrated Reporting () Framework||Not part of the formal consultation process, but the IIRC welcomed feedback|
|16 April 2013||Consultation Draft of the International <IR> Framework published||Comment deadline 15 July 2013|
The IIRC website can be accessed at www.theiirc.org.