Paul Druckman Chairman, Executive Board - The Prince’s Accounting for Sustainability Project (A4S) Co-chair, IIRC Working Group Amsterdam - April 2011 "towards a new model.. integrated reporting"

Evolution of reporting

Integrated Reporting – focussing on the top slice Slide 4 Sets a framework to encourage greater linkage between existing reporting silos.

Why the IIRC was established Bring together financial standard setters (IASB, FASB, IFAC), securities regulators (IOSCO) and sustainability standard setters (GRI, AccountAbility) with representatives from companies, investors and civil society to develop and implement an integrated reporting model Facilitate convergence to increase consistency, avoid reporting burden and enable comparability on an international basis “To create a globally accepted Integrated Reporting framework which brings together financial, environmental, social and governance information in a clear, concise, consistent and comparable format. The aim is to help with the development of more comprehensive and comprehensible information about organizations, prospective as well as retrospective, to support transition to a more sustainable global economy.”

IIRC Membership - extract Sir Michael Peat, Principal Private Secretary to TRH The Prince of Wales and The Duchess of Cornwall (Chairman) Professor Mervyn King, Chairman, King Committee on Corporate Governance and Chairman, GRI (Deputy Chairman) Charles A. McDonough, Vice President and Controller, The World Bank Göran Tidström, President, IFAC Professor Nelson Carvalho, Universidade de São Paulo, Brazil Chairman, 25th Session of UNCTAD’s ISAR Paul Clements-Hunt, Head of Unit, UNEP FI Jane Diplock, Chairman of the New Zealand Securities Commission and Executive Committee of the IOSCO Robert Eccles, Harvard Business School Leslie Seidman, Chairman, FASB Ishaat Hussain, Chief Financial Officer, Tata Professor Angelien Kemna, Chief Investment Officer, APG Huguette Labelle, Chair, Transparency International Dennis Nally, Chairman, PricewaterhouseCoope rs International Limited Atsushi Saito, President & CEO, Tokyo Stock Exchange Group, Inc Rick Samans, Managing Director, WEF and Chairman, CDSB Jim Singh, Chief Financial Officer, Nestle Sir David Tweedie, Chairman, IASB Christy Wood, Chair, ICGN

Underlying it all.....

Roadmap – making a vision a reality

10 Work-streamDescriptionOutput 1. Integrated Reporting Framework development Proposals for an integrated reporting framework Discussion Paper for public consultation during June/July Engagement and communications Raise awareness of the need for integrated reporting and develop a consensus on the response required Support for proposals taken to the G20 in November Governance of Integrated Reporting Proposals for the role of the IIRC and other organisations to achieve the adoption and oversight of integrated reporting in the medium- to long-term Discussion Paper for public consultation during June/July 2011 Immediate Work Plan

October 2010 Late May 2011 Public consultation ending 31 July 2011 March /April 2011 Stakeholder workshops 2011 Key milestones 11 Discussion Paper G20 proposals November 2011 Beijing Meetings - IIRC -Working group - Pilots Jan 2011 São Paolo New York May 2011Sept 2011 Regional round-tables Oct 2010Feb 2011Oct 2011Aug 2011 Call for evidence Public consultation Ongoing engagement and consultation Newsletters ; Online integrated reporting community forum discussions ; Presentations at conferences, seminars and other meetings ; One-to-one meetings Mar 2011 Kick-off Pilots conducted June-July 2011

Roadmap – making a vision a reality Discussion Paper Exposure Draft Framework consultationpilots monitoring national activities standard setters/reg ulators/go vernments /G20 continuing evolution

Building momentum – sample Proposals to G20 Finance ministers & Heads of State Oct/Nov WEF, Davos January IIRC, Beijing January G8 CR initiative Paris September WFE call to G20, Cape Town, October World Federation of Exchanges (WFE) Mexico, March Regional Roundtables from April 2011 ICGN, Paris September One on one engagement with Government, Sherpas, Business, Investors & other opinion leaders Building portfolio of public statements of support Pilot Programme commences September IIRC, New York /Washington May UNEP-FI October PRI clearinghouse call – September (TBC)

Roundtables – an indication Japan [tbc] US NY – June LA – July with AICPA & others Paris [June] with Credit Agricole Frankfurt 21 June with DVFA Brussels 17 June with FEE Sydney April 11 th. with BRLF Rio [July] [with GRI] Davos 27 January with WEF Mumbai 19 January with GRI & GTZ London 15 Dec 10 with A4S

IR Pilot Programme

Contents of the Discussion Paper PART I Background/Preface - Who is IIRC, high-level vision, 2- year plan Executive Summary 1.Introduction –What is IR? 2.Business case 3.Vision 4.Roadmap, enabler and barriers PART II The Framework Model Principles Elements PART II The Framework Model Principles Elements

TIMELINE Short Medium Longer E X T E R N A L F A C T O R S STRATEGIC OBJECTIVES GOVERNANCE OPERATIONS & PROCESSES L PERFORMANCE BUSINESS MODEL: HOW THE ORGANIZATION CREATES VALUE POOL OF FIVE CAPITALS Financial and Manufactured Human Intellectual Natural Social POOL OF FIVE CAPITALS Financial and Manufactured Human Intellectual Natural Social I N T E G R A T E DR E P O R T I N G RESOURCE & RELATIONSHIP MANAGEMENT RISKS AND OPPORTUNITIES STRATEGIES

“5 Capitals” Financial capital: Intellectual Capital: Human capital: Natural capital: Social capital:

Your contribution Educate, influence and communicate Comment on Discussion Paper Potential pilots