Purpose of the IIRC

The IIRC is being created to respond to the need for a concise, clear, comprehensive and comparable integrated reporting framework 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.

Role of the IIRC

The role of the IIRC is to:

• raise awareness of this issue and develop a consensus among governments, listing authorities, business, investors, accounting bodies and standard setters for the best way to address it
• develop an overarching integrated reporting framework setting out the scope of integrated reporting and its key components
• identify priority areas where additional work is needed and provide a plan for development
• consider whether standards in this area should be voluntary or mandatory and facilitate collaboration between standard-setters and convergence in the standards needed to underpin integrated reporting
• promote the adoption of integrated reporting by relevant regulators and report preparers.