Mar
16
Written by:
Leigh Roberts
3/16/2011 3:06 PM
Earlier this month, SAICA (the South African Institute of Chartered Accountants) hosted a half-day seminar on integrated reporting in Cape Town and Johannesburg.
Having been the MC at both events, I was struck by the differences between the two events.
In Cape Town, the delegates seemed more accepting of the concept of integrated reporting and the benefits that an integrated report can bring (the investment analyst contingent were especially favourable).
In Johannesburg, the overall energy I picked up was that delegates seemed a bit more reluctant to embrace integrated reporting. It was as if some took the view of "oh no, yet another reporting requirement to add to my heavy workload and I'm outta time because an integrated report has to be done for this financial year".
JSE listed companies do indeed need to produce an integrated report for their financial years starting on or after 1 March 2010, or explain why they are not doing so.
While I could wax lyrical on all the arguments that can be raised against the "oh no" feeling I shall stick to two:
1. Integrated reporting can save the company money. Not only in the obvious printing costs saved in producing a slimmer report than the 600-page annual report, but also in the cost savings to be had when putting sustainable business practices into place (eg reducing packaging, energy-efficient processes, reducing waste etc). Marks and Spencer plc says it generated a 50 million pound surplus on 2009/10 from its Plan A (an ethical and environmental programme that integrates these issues into the business).
2. Alison Ramsden from PwC in her presentation at the Johannesburg seminar made the great point of having a roadmap. If a company doesn't already have the information systems in place to produce an integrated report right now, she said, tell us how you aim to get there - your roadmap. It is accepted that achieving the ideal integrated report will be a journey for many organisations in South Africa.
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