Integrated Reporting Benefits: Insights for C38SE Tutorial
School
Heriot-Watt**We aren't endorsed by this school
Course
ACCOUNTING C38SE
Subject
Accounting
Date
Dec 10, 2024
Pages
2
Uploaded by MegaWhale4190
C38SE tutorial solutionsSocial and Environmental Accounting C38SE2 Tutorial 4 Integrated Reporting and SASBActivity 2 (Hints and tips could be found in the Unit 6 lecture slides)Here are some examples for the 6 capitals:Financial: shares, bonds or banknotesManufactured: tools, machines, buildingsIntellectual: employee knowledge, business trainingHuman: employees health, skills, motivationSocial and relationship; families, communities, trade unionsNatural: Renewable and non-renewable materials, water, wind, solar power•How would the organisation and investors have benefited from its IR? 1.Benefits for business of IRMandatory in South AfricaBetter articulation of strategy for the business and how its business model is respondingto changing needs and expectations in the marketplaceEnabling better dialogue between the business and providers of financial capitalMore connected departments, breaking down silos. Catalyst for integrated managementImproved internal processesLower cost of capital2.Benefits for investors of IRIR makes clearer the connections between organisation’s strategy, governance,performance and prospects – investors are therefore able to assess more effectively thecombined impact of diverse factors.The disclosure of key risks and opportunities as management views them enablesinvestors to assess the short, medium and long term impact.More effective capital allocation decisions leading to better long-term investmentreturns.•What are the criticisms of IR?The original IIRC members left the organisation.No representatives from stakeholders’ side.Half of the members in the organisation are qualified accountants and therefore they‘“were determined to control a new initiative that threatened their established position”instead of representing stakeholders’.Activity 3Here is one sample company for students to consider.Apple’s ESG Report https://investor.apple.com/esg/default.aspxApple mapped their ESG disclosures across metrics outlined in the Global Reporting Initiative (GRI),Sustainable Accounting Standards Board (SASB)and the Task Force on Climate-Related Financial Disclosures (TCFD) voluntary disclosure frameworks.Please have a look at their ESG full reportand their ESG Index.Strategy from the CEO letter:Page 1of 2
C38SE tutorial solutionsWe apply the same ethos of constant innovation and improvement to every aspect of our work — from building an inclusive company culture where everyone feels welcome to becoming carbon neutralacross our global supply chainand the lifetime of our productsby 2030.Greenwashing or actions?Please have a look at the recent news about Apple below.Apple to Track Suppliers’ Emissions, Targeting a Decarbonized Supply Chain by 2030Apple to put USB-C connectors in iPhones to comply with EU rulesPage 2of 2