DRIVING AND COMMUNICATING VALUE CREATION / IFACI - CNCC

Integrated reporting involves promoting a new international reporting framework that concisely combines financial and non-financial data. It helps companies to restore the confidence of investors as well as their various internal and external stakeholders through the publication of clearer information on long-term value creation. Integrated reporting is a way for companies to illustrate and promote not only their financial performance, but also their performance in relation to social, environmental and governance issues.

In March 2015, a survey conducted by Paris Europlace* on around 30 companies (half of which were listed on the CAC 40 index) showed that French companies lagged behind their foreign counterparts in terms of integrated reporting. While they were familiar with the initiative, which is led by the International Integrated Reporting Council (IIRC), only three companies said they were trying it out. Other companies reported that they were also working on the matter, but the list is very short. A big step was taken in France ten years ago with the introduction of the laws on new economic regulations ( lois de nouvelles régulations économiques NRE) as well as the Grenelle environmental laws. As a result, large companies are now accustomed to publishing non-financial indicators. However, integrated reporting is radically changing the end goal of such communications. The aim is not simply to gather information, but also to provide an intelligible, comprehensive vision of the company s business model, strategy, organisational structure and governance using a limited number of indicators that are relevant to its ecosystem.

The IFACI and the CNCC have joined forces to promote integrated reporting among French companies as a means of driving and communicating value creation. The two organisations wish to emphasise the need for companies to innovate their external reporting practices and demonstrate how integrated reporting can help them to do so. They present a detailed review of the situation in France before addressing the issues that could discourage companies from embarking on the integrated reporting process. Lastly, they highlight the main criteria for a successful integrated reporting process.

* Survey conducted by Paris Europlace s sustainable finance commission on Paris stock market issuer and investor expectations in terms of socially responsible investing (SRI) and corporate social responsibility (CSR) between July and November 2014. A sample of 69 issuers and investors (32 issuers, of which 18 CAC 40 companies, 22 asset managers and institutional investors and 15 banks and insurance companies) were surveyed and the results were published in late January by Paris Europlace.

PHILIPPE MOCQUARD CEO, IFACI

JEAN BOUQUOT MEMBER OF THE CNCC S NATIONAL BOARD