Global Compact International Yearbook Ausgabe 2013

Agenda
Integrated ISO 26000 Reporting
This contribution strives to answer the following questions:
Why do we need to realign corporate reporting? Is it old
wine in new bottles or does it contain revolutionary ideas
about corporate reporting? What is the additional value
of integrated reporting and what does EnBW’s path toward
integrated reporting look like?
By Dr. Lothar Rieth and Christoph Dolderer
In times of globalization and economic and financial crises,
organizations are faced with a myriad of challenges. They
have to reinvent their business models and implement new,
innovative structures. Like many other organizations, EnBW
has been affected as well, in addition to issues relating to the
government-prescribed energy system transformation (Energiewende)
in Germany. EnBW is one of the largest energy
companies in Germany and Europe. In 2012 EnBW employed
a workforce of about 20,000. These employees generate, trade,
transport, and sell energy. Decentralized energy solutions,
renewable energies, and low-carbon production are what the
business focuses on. In these turbulent times in the global
economy – and in the utility sector in particular – EnBW
has decided to implement the idea of integrated reporting.
A changing landscape of reporting
In the last decade, the global economy has suffered under
the worst financial crisis since the 1930s – a crisis that was
in part driven by individuals and organizations focusing on
short-term profits and rewards, irrespective of their long-term
sustainability. The crisis has underlined the need for capital
market decision-making that reflects long-term considerations
and implications. Furthermore, it has questioned the extent
to which corporate reporting disclosures – as they exist today
– reveal systematic risks to business, and whether this
is sufficient and transparent. For years, corporate reporting
became more voluminous and complex. Business reports are
therefore equally exposed to fundamental criticism and used
less as a primary source of information. At the same time, the
number of stakeholders as well as their expectations over the
years have grown considerably. Therefore, some companies
produce “Sustainability” or “Environmental, Social and Governance”
reports that consider these factors. Sustainability
reports do not sufficiently address the risks and opportunities
associated with the business strategy and model, nor are they
well-known and relevant within companies. More reports and
more information do not imply better reporting.
As a result, discussions have been carried out for several years
as to whether the published corporate information should be
realigned and in parts condensed, made more transparent, and
formulated in a more understandable way. New concepts for
reporting are necessary and go beyond the existing traditions
and legal requirements. The idea of integrated reporting is
considered a viable alternative.
The International Integrated Reporting Council
All observers are aware that, as with all good ideas, a common
and consistent understanding of integrated reporting is highly
necessary to gain acceptance in markets, politics, and across
society. Nevertheless, until recently, no standards or principles
for integrated reporting had been set. The International
Integrated Reporting Council (IIRC) was founded with the support
of HRH Prince Charles with the Prince’s Accounting for
Sustainability project in August 2010. It was intended to fill
this gap by developing an internationally binding framework
that supports companies in preparing an integrated report.
With a number of draft papers, the IIRC proposed a framework
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