This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Applying the Integrated Reporting concept of ‘capitals’ in the banking industry

  • IIRC (International Integrated Reporting Committee) (green) Image

07 Sep 2015

A paper, written on behalf of the <IR> Banking Network, analyses the application of the multi-capitals approach in the IIRC framework for integrated reporting in the banking sector. The paper also aims at providing industry specific guidance on the application of <IR>.

The capitals are one of the three fundamental concepts underpinning <IR>. They are the resources and the relationships used and affected by the organisation, which are identified in the <IR> Framework as financial, manufactured, intellectual, human, social and relationship, and natural capital.

Highlights of the findings in the paper include:

  1. Although the capitals framework is not easily implementable in the banking industry at first sight, there are an increasing number of best practice examples.
  2. Of the 20 surveyed banks, eight applied the <IR> 'capitals' terminology as outlined in the <IR> Framework and three others applied a similar concept but used different terms.
  3. Banks tend to provide provide key performance indicators for 'output and outcomes' only rather than for 'input' (usage of resource) or net contribution. When 'input' is reported, banks do so to comply with other frameworks such as the GRI guidance.
  4. Not surprisingly, the highest consistency of key performance indicators relates to financial capital. It is commonly viewed as the capital most directly relevant to investors, and most easily quantified. Information for the other capitals tends to be more varied.

Please click to access the paper on the IIRC website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.