Week 1 Unit 1: Trends in Integrated

Reporting

Trends in Integrated Reporting

Welcome
Week 1: Evolving Organizational Sustainability
Integrated reporting and company performance
Creating social and environmental impact
Responsible investments

Week 2 Digitization Creates Social Impact

UN Global Goals, other sustainability frameworks
Digitization and sustainability
UN Global Goals Health, Gender Equality, Economic
Growth

Week 3 Digitization and Resource Productivity

UN Global Goals Cities, Responsible Consumption,
Climate Action, Partnerships for the Global Goals
Recap of key course learnings

2016 SAP SE or an SAP affiliate company. All rights reserved.

Public

Trends in Integrated Reporting

Whats happened since 2014?
From EYs survey Tomorrows Investment
Rules 2.0, the % of respondents who:

2015

2014

Consider nonfinancial data

relevant to all sectors

61.5%

33.7%

Use a structured, methodical

evaluation of environmental
and social impact information

37.0%

19.6%

Consider integrated reports

essential or important when
making investment decisions

70.9%

61.0%

Believe companies are motivated

to report nonfinancial information
to demonstrate management of
risk

42.1%

29.0%

Increasing interest by investor community

Evolution towards social, environmental,
and economic impact creation
Growing requests by regulatory bodies
Whats next?

Efforts towards standardization and

comparability

2016 SAP SE or an SAP affiliate company. All rights reserved.

Public

Trends in Integrated Reporting

Investors increasingly consider nonfinancial data for investment decisions
Measurable effects on risk and performance are the most important nonfinancial consequences

IR becomes second most important

information source for investors

How important are each of the following nonfinancial issues to you as an investor?
Business impact of regulation
44.4%

43.1%

11.8%

0.7%

11.0%

1.9%

Minimize risk

Nonfinancial information is
accepted as proxy for long-term
prosperity
Growing focus on reliable
information about social and
environmental risks
Governance topics are key

42.2%
44.8%
Evidence of improved future valuation with business forecasts
28.8%
45.1%
Good corporate citizenship company policy on business ethics
27.3%
55.8%
Client demand from corporate investors
24.7%
48.1%
Return on investment in ESG activities
22.9%
41.2%
Company has a policy on assessing nonfinancial factors
16.9%
61.0%
Personal values
16.9%
49.4%

22.7%

22.9%

3.3%

14.3%

2.6%

20.8%

6.5%

28.8%

7.2%

18.8%

3.2%
11.0%

Investment codes/advisors Principals for Responsible Investments

(PRI) Pensions & Investment Research Consultants (EIRC)
11.1%
Essential
2016 SAP SE or an SAP affiliate company. All rights reserved.

43.8%
Important

33.3.7
%

Sometimes important

11.8%
Not important
Public

Trends in Integrated Reporting

Companies evolve towards social and environmental impact creation
Connecting nonfinancial and financial
performance raises stakeholder and leadership
awareness
Initial focus on internal integrated thinking
Materiality assessment is expanded towards
external impact creation through
Operations
Products and services
Thought leaders evolve from integrated
reporting to integrated steering

2016 SAP SE or an SAP affiliate company. All rights reserved.

Public

Trends in Integrated Reporting

Growing request by regulatory bodies and stock exchanges
Mandatory CSR reporting according to GRI G4 for listed
companies in Taiwan
Singapore Stock Exchange (SGX) implements mandatory sustainability reporting for financial year 2017
Canadian Securities regulatory authorities request
transparency on women in leadership
Malaysia released SRI framework in 2015
Mandatory disclosure of nonfinancial and diversity
information amends EU Directive 2013/34/EU
The Bombay Stock Exchange (BSE) establishes CSR
exchange in India

2016 SAP SE or an SAP affiliate company. All rights reserved.

Public

Trends in Integrated Reporting

Where does reporting go in the future?

Describe business models in the context of

impact and value creation

Build and maintain trust through increased

transparency

Set and communicate extra financial targets

Leverage SDGs* as reference framework

Establish more frequent progress reporting

Reporting will be purely digital, with reliable,

accurate, and dynamic data disclosure

* UN Sustainable Development Goals

2016 SAP SE or an SAP affiliate company. All rights reserved.

Public

Trends in Integrated Reporting

Challenges to overcome

Lack of comparability hinders greater

acceptance of integrated reporting
Alignment activities between various framework
providers* are underway
Audits!
* Framework providers are:
IIRC = International Integrated reporting Council
SASB = Sustainability Accounting Standards Board
GRI

= Global Reporting Initiative

2016 SAP SE or an SAP affiliate company. All rights reserved.

Public

Trends in Integrated Reporting

Course Structure
Weeks 1 through 3
Several videos and self-tests

Week 1

One weekly assignment

( online test)

Evolving
Organizational
Sustainability

Online forum
(collaborate, ask questions)

Week 2

day of effort each week

Week 4

Final exam (

Video 1

Self test 1

Video 2

Self test 2

Video n

Self test n

Weekly assignment

Digitization Creates
Social Impact

Week 3
online test)

Digitization and
Resource Productivity

Record of Achievement
Collect at least 50% of the total points available
in all online tests during the course

2016 SAP SE or an SAP affiliate company. All rights reserved.

Week 4

Final Exam

Public

Thank you

Contact information:
open@sap.com

 2016 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate
company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its
affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and
services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop
or release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy and possible future
developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time
for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forwardlooking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

2016 SAP SE or an SAP affiliate company. All rights reserved.

Public

11