Carla Clamp
Director
We live in an era of radical transparency, which is prompting a rethink on corporate reporting. This is evidenced by the European Union’s directive on environmental, social and governance (ESG) reporting, the United Kingdom’s strategic report, the context of reports filed with the United States Securities and Exchange Commission, the Operating Financial Review in Australia and the listing requirements of several stock exchanges, including the Johannesburg Stock Exchange.
The traditional financial reporting system was a revolutionary development when it was instituted. It has since had to respond to market regulators, standards boards, ever more complex legislation and the regulation of accounting and corporate reporting. It is accepted that, while fully compliant and duly audited financial statements are critical, they are insufficient to discharge the duty of accountability. Similarly, a sustainability report is critical but insufficient. The reality is that the resources or capitals used by organisations constantly interconnect and interrelate. The organisation’s reporting should reflect this interconnectedness, and indicate how its activities affect, and are affected by, the six capitals it uses and the triple context in which it operates.
The move from siloed reporting to integrated reporting is consistent with the concept of an inclusive, sustainable capital market system. It has been given impetus by acceptance of the triple context in which organisations operate and the evolution of integrated thinking.
King IV takes cognisance of these shifts and in response to good governance and the Integrated Report Council Frameworks, many leading organisations have begun to change the way they operate and have moved to the integrated reporting model.
BDO can assist your organisation to implement your integrated reporting framework, assist you to define your material issues through a materials issues workshop, assist you to draft sections and define the boundaries and content of your integrated report.
Our Rethink model is assisting our clients to think the way they have been doing business in the past and rethink the way they need to operate in a changing and digitised world.