www.pwc.

com

Implementing integrated
reporting
PwCs practical
guide for a new
business
language
September 2015

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The reporting challenge

Many organisations are finding that a

fundamental change in reporting requires much
more than a focus on the end report. It requires a
deeper understanding of all the building blocks of
the business value creation process.
Paul Fitzsimon
PwC Head of reporting and Chief Accountant

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The proposed roadmap

Three fundamental foundations

1 Materiality analysis
Understanding material issues for the business,
based on investors and other stakeholders input.

2 Value creation
Understanding how a particular organization creates
value for all its major stakeholders.

3 Evaluating impact
Monitoring the indicators that capture the impact of
the strategy and operations, and using them to
report your value creation story to investors and
other stakeholders.
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PwCs roadmap

Materiality analysis

Look at the outside world

end engage with your
stakeholders

Based on these three

foundations, our
roadmap sets out five
stages to introduce and
and embed integrated
reporting in an
organization

A new business
language

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Emphasis on practical
Extract of pages 16 and 19 of the guide

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Stage 1: Look at the outside world and

engage effectively with your stakeholders
to identify issues that are material to the
organizations future success
Guiding questions for management teams
1. Have you identified and prioritised your stakeholders and
assessed how you engage with them?
2. Have you considered the business opportunities and risks arising
from megatrends?
3. How well do you understand your competitive position in
the market?
4. How do you assess materiality?
The cumulative benefits to your reporting
1. Stakeholder engagement process
2. Value chain map

3. Analysis of operational context and competitors

4. Materiality matrix
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Stage 2: Determine your stakeholder value

proposition and refresh your strategy

Guiding questions for management teams

1. How do you define value for your stakeholders?

2. How do you create value for your stakeholders?

3. Is your strategy resilient for the short, medium and long term?
4. Should you refresh your strategy and goals to reflect all your
material issues?
The cumulative benefits to your reporting
1. Definition of value
2. Improved risk reporting
3. Value creation process

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Stage 3: Align your internal processes to

your strategy
Guiding questions for management teams
1. How does your organisational culture and behaviour support
delivery of your strategic objectives?
2. Is your integrated management information enabled by systems
and processes?
3. Can you link your strategic objectives to your suite of
management information?
The cumulative benefits to your reporting
1. Value drivers
2. Qualitative disclosures of connectivity
3. Relevant KPIs

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Stage 4: Develop your integrated

dashboard that brings together all the
relevant information that is needed
Guiding questions for management teams
1. Can you communicate to the rest of your organisation how your
strategy delivers value to stakeholders?
2. Can you ensure that your management information provides
holistic insight to the board and other decision makers?
3. Do you make decisions based on holistic management
information?
4. Do you have the right data to drive your decisions?
5. How do you evaluate your impact and is it incorporated into
your dashboard?
The cumulative benefits to your reporting
1. Connected insights into relationships between stakeholders
value and impact
2. The integrated dashboard breaks down silos between
departments
3. Reduced reporting burden, as the integrated dashboard
combines several (pre-existing) reports into one
4. Communication toll on how the organization creates value
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5. Measurement of impact: Total Impact Measurement and

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Management

Stage 5: Integrate your reporting for a

better investor dialogue
Guiding questions for management teams
1. Within your existing reporting process, have you nominated a
multidisciplinary steering group?
2. Has the board provided the steering group with clear vision?
What story is to be told?
3. Have you nominated one responsible writer?
4. Have you started on a blank page and determined the scope
and boundaries?
5. Are you using the connectivity matrix as the storyline?
6. Is there a clear communication plan for how to improve the use
of the annual report within your investor dialogue?
The cumulative benefits to your reporting
1. External reporting becomes more valuable for your investor
dialogue, and for the dialogue with other stakeholders.
2. External reporting becomes the solid basis for continuous and
fundamental improvement of your reporting and alignment of
internal and external reporting

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What integrated reporting can deliver

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What integrated reporting can deliver

Measuring and reporting the

total impact of the companys
activities across social,
environmental, fiscal and
economic dimensions
contributes to the long-term
success of the organisation
75% of global CEOs surveyed
PwC 17th Annual CEO survey

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Companies on the IR journey say they see:

Better understanding of business opportunities and risks through the
organisation (65%)
Improvements in decision making (79%)
More collaborative thinking about targets and goals by the board and strategy
departments (78%)
Blacksun (2014) Realising the benefits,
the impact of integrated reporting.
Survey of IIRCs pilot companies.

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Link to the guide:

http://www.pwc.com/gx/en/auditservices/publications/assets/pwc-ir-practical-guide.pdf
Contacts:
mauricio.colombari@br.pwc.com
dominic.schmal@br.pwc.com

2015 PricewaterhouseCoopers. Todos os direitos reservados. Neste documento, PwC refere-se a PricewaterhouseCoopers Brasil, firma membro da PricewaterhouseCoopers
International Limited, constituindo-se cada firma membro da PricewaterhouseCoopers International Limited pessoa jurdica separada e independente.
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