The International Integrated Reporting Council's (IRRC) proposed integrated reporting model could encourage a tick-the-box approach by less engaged reporters, the Australian Council of Superannuation Investors (ACSI) has warned.
In its submission to the consultation draft of the international integrated reporting framework, ACSI said that although the six proposed capital categories could reduce the tendency for reporters to "slip into ‘siloed' thinking" when reporting to stakeholders, an overly model-driven approach could lead to compliance-focused external assurance processes or lackluster involvement by reporters.
"In this regard, the key attribute that we, as representatives of providers of investment capital, will be looking for, will be a genuine commitment at the governance level of an organisation (ie, board of directors) to embrace the integrated thinking challenge, rather than merely evidence that they have engaged someone to prepare reporting material that fits each of these preconceived categories and ‘has all the right words in it'," it said.
The six categories should serve to ensure appropriate disclosure and relevance rather than act as a universal benchmark, as reporting should be qualitative and dynamic, according to ACSI.
Those charged with governance in relation to the report should be required to make a statement ensuring accountability for honest, accurate and reasonably unbiased information, it said.
