We have received a kind message below from Ms. Jessica Robinson, Chief Executive Officer of Association for Sustainable & Responsible Investment in Asia.
I had the pleasure of attending the launch of the consultation draft of the Integrated Reporting <IR> Framework in Hong Kong. As many will know, the <IR> Framework, driven by the International Integrated Reporting Council (IIRC), is intended to accelerate the market-led evolution in corporate reporting.
The consultation is an important step forward and I urge you to review the draft, provide feedback and help ensure that the resultant Framework delivers the level of disclosure and transparency needed to make more informed longer term investment decisions.
Why is the <IR> Framework important to investors and the providers of financial capital?
By increasing the relevance and value of corporate reporting, the <IR> Framework will assist investors in the decision-making process by providing greater insights into the business model and future direction of the organisation – critically important in making the investment decision.
Integrated Reporting provides a tool for understanding the organisation’s strategy for creating value, communicating how it has managed key risks and its ability to retain high quality human, intellectual and natural resources. This level of understanding can support and encourage longer term investment decision-making.
Implementation of the <IR> Framework will facilitate the integration of intangible factors – for example, brand and reputation, internal knowledge, stakeholder relationships, natural capital – into the strategic decision-making process of the organisation, providing investors with a greater level of transparency on which to make more informed decisions.
Why is it important to review and respond to the Consultation Draft of the International <IR> Framework?
As investors and providers of financial capital, the consultation provides a unique opportunity to shape a reporting framework that provides the information that is needed to make more informed and longer term investment decisions.
As members of the broader investment and financing community, the consultation offers a platform to encourage the inclusion of critical environmental, organisational and social factors into investment decisions – and the disclosure requirements to support that.
As stakeholders, we can use this consultation to provide meaningful feedback on what is required to support enhanced accountability and stewardship, make more informed capital allocation decisions and support integrated thinking.
Whilst Integrated Reporting is still in its infancy in Asia, the <IR> Framework presents a unique opportunity to drive this agenda forward across the region. The Association for Sustainable & Responsible Investment in Asia (ASrIA) will be working with the Hong Kong Institute of Certified Public Accountants to support the consultation process and co-organise a follow-up event in June.
The Consultation Draft can be found at www.theiirc.org/consultationdraft2013, along with a detailed guide on how to respond. I urge you to read the Consultation Draft and provide feedback.