1.5 Integrated reporting
The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standards bodies, accountants and non-government organisations. They want to establish integrated reporting (IR) and integrated thinking as the norm in the public and private sectors, so have created an.
IR involves aligning capital allocation and corporate behaviour to wider goals of financial stability and sustainable development through the cycle of integrated reporting and thinking. This type of approach could be applicable to smart city reporting as it focuses on value creation and could help to create a meaningful assessment of the impact of smart city projects.
An integrated report explains how an organisation creates value over time. IR recognises that value is not created by or within an organisation alone. It is also influenced by the external environment, created through stakeholder relationships and dependent on various resources.
An integrated report aims to provide insights about:
- the external environment that affects an organisation
- the resources and the relationships used and affected by the organisation, referred to as the ‘capitals’: financial, manufactured, intellectual, human, social and relationship, and natural
- how the organisation interacts with the external environment and the capitals to create value over the short, medium and long term.
The framework has been tested by businesses and investors all over the world.
Jyoti Banerjee from Fronesys, a partner in MK:Smart, has written an article on IR for the course, Integrated Impacts Framework for Cities (Banerjee, 2015).
See Jyoti Banerjee addressing a World Bank public sector integrated reporting conference, Washington DC, November 2014: Fronesys promotes smart cities impact analysis at World Bank conference.