The launch of the International Integrated Reporting Committee (IIRC)

The 2nd August 2010 marks the day of the official launch of the IIRC. After the idea of a global collaborative body on integrated reporting was first sprouted late last year, the IIRC is now a reality. The IIRC brings together an impressive list of organizations, including the Global Reporting Initiative (GRI), The Prince’s Accounting for Sustainability Project, IFAC, IASB, UNEP Finance Initiative, UN Global Compact, CDSB, IOSC, ICGN, WWF and WBCSD. The role of the IIRC is to respond to the need for a concise, clear, consistent and comparable integrated reporting framework, reflecting the organization’s strategic objectives, governance and business model, and integrating both financial and non-financial information. 
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Launch of the Integrated Reporting Committee in South Africa

Five major South African organisations have come together to form the Integrated Reporting Committee (IRC). The organisations are: Association of Savings and Investment SA (ASISA), Business Unity SA (BUSA), Institute of Directors SA (IoD), JSE Ltd and SAICA (SA Institute of Chartered Accountants).
The IRC will develop guidelines on good practice in integrated reporting. The JSE now requires that listed companies have to produce an annual integrated report, in terms of the King III Code of Governance. This means that South African companies will be among the first in the world required to produce integrated reports. The IRC will work with the International Integrated Reporting Committee to harmonise international standards on integrated reporting.
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A new Investor Code looming for South Africa

A Code is currently being drafted to give guidance on responsible investing in South Africa. The Code will be based on the principles of governance set out in the King III Code for Governance. It will deal with matters such as the accountability of institutional investors to the ultimate beneficiaries of investments (the individual members who are owners of the institutional funds), engagement with investee companies, and consideration of ESG factors.
The first draft of the Code is expected towards the end of this year. The Code is being drafted by a Committee that includes the IoDSA, ASISA, JSE Ltd, Cadiz, Element Investment Managers, Investec Asset Management, Mergence, Old Mutual, Public Investment Corporation, Principle Officers Association, Prudential, Regarding Capital Management, and the Securities Regulation Panel.

A new book on reporting tools and approaches

If businesses are to meet the many and complex challenges of sustainable development, then they need to embed sustainability considerations into their decision-making and reporting. However, the translation of this aspiration into effective action is often inhibited by the lack of systems and procedures that take sustainability into account. “Accounting for Sustainability: Practical Insights” will help organizations to address these issues. The book sets out a number of tools and approaches that have been developed and applied by leading organizations to: embed sustainability into decision-making; measure and link sustainability and financial performance; and integrate sustainability into 'mainstream' reporting. Get a 20% discount on all Earthscan books when ordering at www.earthscan.co.uk using the voucher code SAICA.
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New link for IFAC

The International Federation of Accountants (IFAC) and The Prince’s Accounting for Sustainability (A4S) Project are working together to support the global accountancy profession’s role in developing sustainable organisations. The two bodies will work together to advance the role of sustainability leadership and reporting at a global level, foster collaboration with key stakeholders, and developing best practices for integrating sustainability issues in business practices.
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SEC Guideline on climate change disclosure

The SEC (Securities and Exchange Commission) in the US has issued an Interpretative Guideline to public companies on the Commission’s existing disclosure requirements on climate change matters. The effective date is February 8, 2010. The Guidance serves as a reminder to companies of their obligations under the existing regulations to consider climate change and its consequences in their disclosures to the Commission and to investors. The Guidance appears to have been prompted by the fact that many US companies already make voluntary disclosure of aspects like GHG emissions, as well as the increase in other regulatory disclosure requirements such as the EPA (Environmental Protection Agency).
The Guidance says disclosure by companies on climate change impacts, where material, could include:

• The impact of the recent rise in legislation and regulation. 
• The impact on the company’s business of international accords and treaties.
• Indirect consequences of regulation or business trends
• Physical impacts of climate change.

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A new environmental tax focus

In the Budget 2010/11, announced on 17 February 2010, further reference was made to environmental taxes. (The government is clearly seeing carbon taxes as a new area of revenue, but is no doubt under pressure to make good on the carbon-cutting promises to the Copenhagen conference last December.) A carbon tax on new passenger vehicles was announced, and a broad statement was made that "further research is being done to expand environmental taxes and levies".
National Treasury has a working group looking at a carbon tax on emissions. A position paper is expected in the first half on 2010. Another paper on emissions trading is due in the second half of 2010. It is believed that government will implement a comprehensive carbon mitigation and adaptation strategy, supported by appropriate economic instruments like a carbon tax, in the 2011/12 fiscal year.
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