Good governance in disclosures
Over the years, PIDM has worked on enhancing our reporting approach, with a view to providing key stakeholders with meaningful information.
In 2018, PIDM commenced research on the Integrated Reporting () Guiding Principles and Content Elements and considered how we might adopt them. In the 2018 and the 2019 annual reports, PIDM incorporated some of these core elements. In 2019, PIDM resolved to have the Board of Directors sign off on a full approach by 2022, in relation to its annual report of 2021.
Integrating PIDM’s strategy, risk and culture in the annual report
“Although initially developed with corporate users in mind, the emphasis of on value beyond profit has many benefits for public sector organisations. Unlike traditional corporate reporting, this more flexible approach enables organisations to focus clearly on how they and their stakeholders define value in the short, medium and long term.”
The approach works particularly well for a regulator, since it encourages the communication of value to society beyond financial numbers. In past annual reports, PIDM was already publishing data on non-financial impacts and reporting on performance in narrative form. So the question is, how is the approach different?
How is different – connectivity, capitals, material matters and time frame
The process connects strategy and planning with information on matters such as governance, key risks, capitals, drivers, environment, performance and impact. With , more attention is given to capitals other than financial capital.
A key objective of is to provide a more rounded explanation of an entity’s ability to create and sustain value over time. The process is expected to achieve an understanding of an organisation’s activities and its impact in a more cohesive way – ultimately resulting, it is hoped, in greater efficiency and effectiveness within the organisation.
From a reporting perspective, by identifying and focusing on things that materially affect an entity’s strategy, governance, performance and prospects, a more concise and relevant report can be developed for stakeholders.
The International Integrated Reporting Council’s discussion paper highlighted certain areas that would challenge an entity when switching from their current reporting practices to integrated reporting. This article describes our experiences against those challenges so far.
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