28 September 2018

TriplePundit: Aligning the SDGs with integrated reporting

The IIRC’s president, Richard Howitt speaks to TriplePundit about the growth of integrated reporting, the new global strategic phase for the IIRC, and preparations for a major alignment project between different reporting frameworks.

The IIRC is the global body bringing business, investors and regulators together to drive reform in corporate reporting. “Integrated thinking,” from the point of view of the IIRC, is critical to the global business community’s agenda for the Sustainable Development Goals (SDGs), and to that end, the organization is making its case this week during the United Nations General Assembly (UNGA) and Climate Week NYC.

TriplePundit had an opportunity to catch up with the IIRC’s president, Richard Howitt, while he was in New York City for Climate Week and several affiliated events. He discussed recent achievements of ‘breakthrough moments’ in the growth of integrated reporting; the planned new global strategic phase for the IIRC to be announced next week; and preparations for a major alignment project between different reporting frameworks, which have been part of discussions in New York City this week.

Mr Howitt said: “Endorsement by regulators is playing an important role in giving added impetus to the growth in integrated reporting, evidenced by the Securities and Exchange Board of India’s call for the top 500 listed companies to adopt integrated reporting, its adoption by the Ministry of Finance in China and its inclusion in the European Union’s Directive on Non-Financial Reporting. However, we see equal weight in ‘soft law’ approaches, including the inclusion of integrated reporting in corporate governance codes from New Zealand to South Africa to Brazil.

The TCFD Task Force recommendations mark a turning point in the world where the ‘multi-capital’ approach is recognized as being a financial issue for the company too, and where the IIRC’s vision of financial stability and sustainable development coming together has been realized.

Regulators now recognize the real financial risks to whole economies of failing to address this very different approach to value creation, and the need to reform capital market rules to unleash long-term investment and to protect long-term returns.”

Full press release