International Integrated Reporting Committee (IIRC), consisting of the foremost accounting bodies in the world, has taken the initiative of running a pilot program for Integrated Reporting. This is done with the ultimate objective of integrating financial reporting and sustainability reporting.
Integrated Reporting will provide an important step for organizations facing the challenges of the 21st century.Current reporting standards such as International Financial Reporting Standards (IFRS) require organizations to produce a fair and reasonable account of their business in audited financial reports. Often, these reports do not fully consider the social, environmental and long-term economic context within which the business operates. Some companies produce ‘Sustainability’ or ‘Environmental, Social and Governance’ (ESG) reports which consider these factors. However, these reports do not necessarily connect the risks and opportunities with the business strategy and model.
DIMO's introduction of Integrated Reporting will help to bring together data that is relevant to the performance and impact of the company in a way that will create a more profound and comprehensive picture of the risks and opportunities we face, specifically in the context of the drive towards a more sustainable global economy.