2016年-世界发展银行全球_Integrated_Thinking_and_Reporting___Focusing_on_Value_Creation_in_the_Public_Sector_34页_1mb

Integrated Thinking and Reporting (IR) in the Public Sector: A Summary

Core Content

Integrated Thinking and Reporting (IR) is a framework designed to help public sector organizations demonstrate how they create value over the short, medium, and long term. It goes beyond traditional financial reporting by incorporating a broader range of information, including social, environmental, and human capital, to provide a comprehensive view of an organization’s performance and strategy.

The International Integrated Reporting Framework was developed by the International Integrated Reporting Council (IIRC) and supported by the World Bank and the Chartered Institute of Public Finance and Accountancy (CIPFA). It emphasizes the importance of connected thinking, where organizations consider the interdependencies between their resources (capitals) and their ability to deliver sustainable outcomes.

Main Points and Key Information

Why IR for the Public Sector?

• Public sector organizations must deliver services in a financially, economically, socially, and environmentally sustainable manner.
• Traditional reporting fails to capture the full impact of public services, including long-term and non-financial outcomes.
• IR supports better decision-making, more efficient resource use, and improved accountability to stakeholders.
• It helps organizations align their strategies with long-term goals and demonstrate how they balance competing interests.

What is Integrated Reporting?

• IR is not just another reporting initiative, but a shift in mindset that encourages holistic thinking and planning.
• It is based on the International IR Framework, which provides guiding principles and eight content elements for reporting.
• The framework promotes connectivity of information, linking financial and non-financial data to show how value is created.
• An integrated report is a concise communication that explains how an organization’s strategy, governance, performance, and prospects lead to value creation.

Benefits of IR in the Public Sector

• 92% of IR participants reported increased understanding of performance and value creation at leadership and employee levels.
• 79% saw improvements in decision-making for sustainable outcomes, largely due to better management information.
• 87% of organizations that publish integrated reports believe financial stakeholders better understand their strategy.
• 96% noted better internal communication and broader, longer-term perspectives.
• IR fosters collaboration across departments, reduces silos, and improves stakeholder trust.

How IR Helps Address Challenges

• Serving a wide stakeholder base: IR enables organizations to communicate with all relevant stakeholders, including taxpayers, users of services, and policymakers.
• Achieving sustainable outcomes: It encourages reporting on both internal and external impacts, ensuring that decisions are aligned with long-term goals.
• Maintaining a long-term perspective: IR supports planning for the future, considering the intergenerational impact of decisions.
• Demonstrating non-financial value: It highlights the importance of social, environmental, and human capital in value creation.

Case Study: Eskom Holdings SOC Ltd

• Eskom applied IR principles to its quarterly reports, streamlining the process and reducing duplication.
• The integrated report became more focused on material items, moving away from siloed, divisional reporting.
• This approach improved clarity and coherence in communication with stakeholders.

Key Features of the IR Framework

• Principles-based: Allows for flexibility and innovation in reporting.
• Holistic: Integrates financial and non-financial information.
• Materiality: Only includes capitals that are material to the organization’s value creation.
• Connectivity: Ensures that information is linked to show how value is created across different areas.

Call to Action

• Public sector leaders are encouraged to adopt IR to improve transparency, accountability, and stakeholder understanding.
• The Public Sector Pioneer Network provides support for organizations interested in exploring IR.
• IR is a market-led response to the need for more sustainable and transparent reporting practices.

Conclusion

• There is growing demand for more user-friendly, integrated reporting that combines financial and non-financial performance indicators.
• IR helps public sector organizations better understand and communicate their value creation processes, leading to improved governance, transparency, and long-term success.
• It enables leaders, employees, and stakeholders to assess how well an organization is performing against its strategy and how it manages its resources and relationships to achieve future success.