King III - Chapter 9: Integrated reporting and disclosure

Overview
Chapter



09


 

The board should ensure that appropriate systems and processes are put in place in order to produce a report to stakeholders that gives a complete picture of a company’s
financial and non-financial profiles in such a way that the report is holistic and reliable.

In order to comply with the recommendations of the Code “reporting should be integrated across all areas of performance, reflecting the choices made in the strategic decisions adopted by the board, and should include reporting in the triple context of economic, social and environmental issues. The board should be able to report forward-looking information that will enable stakeholders to make a more informed assessment of the economic value of the company as opposed to its book value.”

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One of the essential principles of King III is the view that governance, strategy and sustainability are inseparable. In line with the Code’s recommendations, good practice requires that economic, social and environmental issues be included in corporate strategy, management, reporting and assurance throughout the year, in the same way as financial matters are dealt with.

Comprehensive, forward-looking information is the new benchmark in corporate reporting. Internally, the benefits of managing on the basis of holistic data are measurable, while the external integrated report allows the company to reflect its management practices and impacts.

Human, social, natural, manufactured and economic capital are tangible asset bases and each should be managed over time to encourage net added value.

Materiality is essential. Sustainability data, used as management information should form the framework for the non-financial information contained in the integrated report.

Key aspects of the integrated report should be independently assured to confirm reliability internally and to build trust externally.

  1. Does the company have a sustainability strategy and policy?
  2. Is sustainability considered part of ongoing business activities?
  3. Are sustainable development issues integrated into business management systems and departments such as risk, environmental, legal and financial?
  4. Have sustainability criteria been built into individual performance agreements?
  5. Does the company have a suitably qualified director/s and executive/s with the responsibility for sustainable development?
  6. Who in the company is the custodian of the content and assurance of the integrated report?
  7. Do we have to follow the GRI G3 guidelines?
How we can help you
PwC’s Sustainable Business Solutions team can assist with the following:
  • Director and specialised management training in sustainable development
  • Sustainability strategy and policy formulation
  • Sustainability systems and process development
  • Integrated report writing
  • Integrated report assurance using a methodology based on a combination of ISAE3000 and AA1000AS assurance standards
  • Facilitation of the stakeholder engagement process
  • BEE strategy and implementation
  • Technical health, safety and environmental services:
  • Climate change strategy development, carbon footprints and life cycle assessments
  • Health and safety and environmental compliance, ISO certification (9001, 14001, 18001).