A lobby group has called on companies to help develop a new reporting framework that links financial performance with the environmental, social and economic context in which business operates.
The International Integrated Reporting Council (IIRC) today launched a discussion paper on the future of reporting practices and asked for companies to take part in a two-year pilot program beginning in October.
The IIRC says the aim of its pilot program is to:
– Encourage organisations to innovate in their reporting practices
– Inform the future evolution of reporting and investor practices
– Drive convergence in international reporting guidance.
The discussion paper argues that, while companies are reporting more than ever before about non-financial factors, the information is provided in a disconnected fashion and disclosure gaps remain.
‘It is not enough to keep on adding more information – the connections need to be made clear and the clutter needs to be removed,’ states the paper.
The IIRC, which was formed in August last year, is made up of senior figures from a wide range of professions, including the corporate, investment and accounting sectors. The deputy chair is Mervyn King, chairman of the Global Reporting Initiative.
Click here to find out more about the project.
[Article by Tim Human, Inside Investor Relations]
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