2. Sustainability & Integrated Reporting Flashcards
Is sustainability reporting compulsory?
No, it is voluntary
What are the 3 categories within the Global Reporting Initiative (GRI) principles?
- Economy
- Environment
- Society
What are the 4 principles for defining sustainability report content?
- Stakeholder inclusiveness
- Sustainability context
- Materiality
- Completeness
What comes under stakeholder inclusiveness in GRI principles for defining sustainability report content?
Identify stakeholders and show response to their expectations and interests
What comes under sustainability context in GRI principles for defining sustainability report content?
The organisation’s performance in the context of limits and demands placed on environmental and social resources
What comes under materiality in GRI principles for defining sustainability report content?
Reporting on only:
- Significant impacts
- Aspects substantively influencing assessments and decisions of stakeholders
What comes under completeness in GRI principles for defining sustainability report content?
Covering all material aspects and their boundaries:
- Scope
- Boundary
- Time (during the reporting period)
What are the 6 principles for defining sustainability report quality?
- Balance
- Comparability
- Accuracy
- Timeliness
- Clarity
- Reliability
What comes under balance in GRI principles for defining sustainability report quality?
Reflecting both positive and negative aspect of performance
What comes under comparability in GRI principles for defining sustainability report quality?
Consistency of reporting to enable comparison to historic performance and other organisations
What comes under accuracy in GRI principles for defining sustainability report quality?
Sufficient accuracy and detail for stakeholder review (qual and quant)
What comes under timeliness in GRI principles for defining sustainability report quality?
Reporting on a regular schedule and in good time for stakeholders to make decisions
What comes under clarity in GRI principles for defining sustainability report quality?
Information is understandable and accessible
What comes under reliability in GRI principles for defining sustainability report quality?
Recording and disclosure of information and processes used in preparing the report
What are the 2 categories of disclosure under sustainability reporting?
General standard disclosures (giving context) and specific standard disclosures
What are the 7 aspects of general standard disclosures?
- Strategy and analysis
- Organisational profile
- Identified material aspects and boundaries
- Stakholder engagement
- Report profile (period and frequency)
- Governance
- Ethics + Integrity
What comes under strategy and analysis within general standard disclosures?
A statement from the CEO on relevance of sustainability to the organisation, key impacts in the report and strategy and outlook from managing impacts in the future
What are the 4 possible justifications for non disclosure?
- Not applicable
- Subject to confidentiality
- Legally prohibited
- Information is unavailable
What are the 4 subcategories under economic specific standard disclosures?
- Economic performance (rev + distributed)
- Market presence
- Indirect economic impacts (support low economic)
- Procurement practises
What are the 6 subcategories under environmental specific standard disclosures?
- Materials
- Energy
- Biodiversity
- Emissions
- Products & Services
- Supplier assessment
What are the 4 subcategories under social specific standard disclosures?
- Labour practises
- Human rights
- Society
- Product responsibility
What is the aim of integrated reporting?
To show how businesses create value over time, linking the business with the context within which it operates
Are integrated reporting and sustainability reporting the same?
No, integrated reporting builds on the foundations of sustainability erporting
What should the business get from integrated reporting?
Being able to make more sustainable decisions and optimum use of scarce resource
What should stakeholders get from integrated reporting?
Being able to better judge the viability of businesses
What are capitals, in the context of integrated reporting?
The resources and relationships used by the business and which businesses affect
What are the 6 capitals within integrated reporting?
- Financial
- Intellectual (patents and knowledge)
- Social and relationship
- Human (skills, experience and loyalties)
- Manufactured
- Natural
What are the 7 principles of integrated reporting?
- Strategic focus and future orientation
- Connectivity of information
- Stakeholder responsiveness
- Materiality
- Conciseness
- Reliability and completeness
- Consistency and comparability
What are the 8 elements of content of integrated reports?
- Organisational overview
- Governance structure + value creation
- Business model
- Impact of R&Os on value creation
- Strategy and resource allocation
- Performance
- Outlook
- Basis of preparation and presentation
What are the 4 main benefits of non-financial reporting?
- Good publicity
- Willingness to identify and manage risk
- Improved profitability (^ sales and v costs)
- Good for employee morale
What are 5 arguments against integrated reporting?
- Lack of comparability
- Lack of reliability (unaudited)
- May only present positive
- Bias / hiding damaging elements
- Danger of information overload
