CMA Sri Lanka took part in the Official Integrated Reporting (IR) Convention 2017, which was held in October 2017 at Rai, Amsterdam, Netherlands.
The theme of the convention was ‘Unlocking value for future-fit organisations’. The official convention was organized by the International Integrated Reporting Council (IIRC) headquartered in the UK.
Sri Lanka had representations from CMA Sri Lanka President Prof. Lakshman R. Watawala, Diesel and Motor Engineering Co. Plc. was represented by Executive Director Suresh Gooneratne and Finance and Controlling GM Chandane kodituwakku and SheConsults, a consultancy company engaged in integrated reporting, was represented by Director Aruni Rajakariar.
The convention covered a range of topics which included, Market Trends and (IR) impact, (IR) Leading Practice: framework implementation – findings from the global review, Reporting Trends: Challenges, leading practice and investors views, Materiality: Practical approaches to materiality in Integrated Reporting, navigating the corporate reporting landscape: the Corporate reporting dialogue and Task Force on Climate Related Financial disclosures (TCFD), Hidden capitals: Are you undervaluing your biggest asset?, Strategy: Informing strategy with ‘Integrated Thinking’, SDG’s: How to implement Sustainable Development Goals through Integrated Thinking, Financial Services: Understanding value creation in financial services to reduce systemic risk, Technology for management insight and progressive reporting, Academics and Business: What the research says and where more is needed, Communication of Integrated Thinking: What’s the right approach for you?, Investors: Broader Thinking and longer term perspectives from Integrated Reporting and a Key Note address from the Chairman of IIRC Prof Mervyn King and a welcome from the IIRC CEO Richard Howitt.
The CEO Richard Howitt in his welcome stated that evidence shows that businesses adopting (IR) perform better, benefit from a lower cost of capital and attract long-term investors. The secret is out - (IR) is good for business and vital for the future success of our economy, workforce and planet.
He further stated that over 1,600 companies in 62 economies are globally adopting (IR), it is vital that we listen, learn and implement the findings of the important consultation.
IIRC Chairman Prof Mervyn King, in his address stated that Integrated Reporting is an evolution of corporate reporting, with a focus on conciseness, strategic relevance and future orientation. As well as improving the quality of information contained in the final report, (IR) makes the reporting process itself more productive, resulting in tangible benefits. (IR) requires and brings about integrated thinking, enabling a better understanding of the factors that materially affect an organization’s ability to create value over time. It can lead to behavioural changes and improvement in performance throughout an organization.
As set out in the International (IR) Framework, an integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term. The Framework enables a business to bring these elements together through the concept of ‘connectivity of information’, to best tell an organization’s value creation story.
Also he spoke on intangible assets, reputation, value creation, materiality, sustainability, classifying the 17 SDG’s under economy, society and environment, use of natural assets, pollution of the planet which all need to be considered in Integrated Reporting.
CMA Sri Lanka organized the CMA Excellence in Integrated Reporting Awards 2017 and the awards were presented by the Chief Executive Officer IIRC Richard Howitt in July this year in Sri Lanka. Discussions were also held to hold a South Asian Integrated Reporting Conference in Sri Lanka in 2018 in association with IIRC.
As per Judges Report of the CMA Excellence in Integrated Reporting Awards 2017, although there was no regulatory requirement for companies in Sri Lanka to adopt integrated reporting there was an increasing trend observed in the number of companies producing Integrated Reports. The judges noted a significant improvement in the quality of integrated reports presented this year. They were particularly pleased by the progress made in areas highlighted as ‘needing improvement’ in the preceding year. Two areas stood out. One was the description of the value creation process and the other was the description of corporate strategy.
The winners of the CMA Excellence in (IR) Awards 2017 were Diesel and Motor Engineering Company in First Place, John Keells Holdings PLC in second place and Peoples Leasing Co. PLC. in third place with another 10 companies receiving the Ten Best Integrated Reporting Awards.
Those interested to get copies of the CMA Excellence in (IR) Awards Judges Report and details of the presentations made at The Official Integrated Reporting Convention 2017 held in Amsterdam, Netherlands could contact the CMA Secretariat.