Creating Connections Held in partnership with Creating Connections This document has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this document without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this document, and, to the extent permitted by law, PwC, IIRC or their licensors do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this document or for any decision based on it. Copyright 2014. All rights reserved. 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Held in partnership with Creating Connections Creating Connections The Integrated Business Leigh Roberts Project Director: Integrated Reporting, South African Institute of Chartered Accountants Held in partnership with Creating Connections Overview Integrated thinking – a reminder – and recognising your thoughts on the challenges Perspectives: - Professor Mervyn King, IIRC Chairman John Lelliott, Finance Director, and Mark Gough, Head of Sustainability – The Crown Estate Fay Hoosain, Senior vice-president: Office of the CEO – Sasol Q and A with the speakers – send your questions using the activity feed in the app Celebrating the benefits of integrated thinking – your thoughts Your roadmap to <IR> - step 2 Held in partnership with Creating Connections What is integrated thinking? “The active consideration by an organization of the relationships between its various operating and functional units and the capitals that the organization uses or affects. “Integrated thinking leads to integrated decision-making and actions that consider the creation of value over the short, medium and long term.” Source: The International <IR> Framework Held in partnership with Creating Connections The 6 capitals Financial Manufactured Intellectual Human Social & relationship Natural Held in partnership with Creating Connections Recognising the challenges of integrated thinking – your thoughts Getting senior C-suite buy-in Driving cultural change in the company Making those charged with governance understand the purpose of an integrated report Embedding within regular operational reporting Engaging other departments How we collect information in a verifiable format Matching the processes and quality of nonfinancial data compared to financial data Understanding the financial impact of our non-financial performance (interdependencies) Developing cross functional involvement for integrated thinking. Source: Delegate registration forms Held in partnership with Creating Connections The Integrated Business Professor Mervyn King IIRC Chairman Held in partnership with Creating Connections Business perspective John Lelliott Finance Director – The Crown Estate Mark Gough Head of Sustainability – The Crown Estate Held in partnership with Creating Connections Business perspective How we create value The Crown Estate Our business model demonstrates how we draw upon different resources and relationships and transform these to create value Source: The Crown Estate – Annual Report and Accounts 2014 Held in partnership with Creating Connections Business perspective Fay Hoosain Senior Vice-President: Office of the President and CEO – Sasol Held in partnership with Creating Connections The many faces of Sasol – the early 2000s Started to embed integrated thinking as early as 2004 Siloed thinking and business and functional independence reigned supreme Source: Sasol Split accountabilities caused teething problems and limited line of sight Financial and nonfinancial KPIs were housed in different parts of the organisation No one culture, no single identity Teams were pulling in different directions First Integrated Report published in 2011 Held in partnership with One team, One Sasol – 2012 Change in leadership – catalyst for change in thinking Integrated thinking and integrated reporting starts at the top – and is driven from the top Creating Connections Breaking down the silos Better together, we deliver One team, One Sasol Enhanced engagements and dialogue A clear common goal – united and driving in the same direction Focusing on what is in the group’s best interests Extensive change programme commences Source: Sasol Held in partnership with Creating Connections One Sasol, one bottom line – 2013 Change in mindset Investment decisions driven by an integrated approach Focused on the big picture and telling the Sasol story Source: Sasol Improved decision-making and governance frameworks Getting the Board on board One culture Aligned and co-ordinated The 6 capitals form the basis of our investment criteria Reaping the benefits of integrated thinking Held in partnership with Creating Connections A new era for Sasol – 2014 Repositioned Restructured Focused Source: Sasol Held in partnership with Creating Connections Panel and Q&A Held in partnership with Creating Connections Celebrating the benefits of integrated thinking – your thoughts More connectivity internally Increase in the level of involvement of internal teams in corporate reporting (more engagement, more participation) Helped us in seeing the interconnectedness in our business and how important it is to look at problems in an integrated manner Stronger connection between finance and corporate sustainability teams Input to the way business models and performancemanagement system can be devised Influencing the way we measure/make decisions in the company, providing a broader understanding of our results Better communication with the board and management Participating in a wider stream of company process innovation, having high level sponsorship and legitimacy We have been encouraged to think "integrated" and this enhances our decisions Source: Delegate registration forms Held in partnership with Creating Connections Your roadmap to <IR> Ian Ball Chairman, Chartered Institute of Public Finance and Accountancy, Chair of IIRC Working Group Held in partnership with Creating Connections Step 2 – assess your integrated thinking For the focus areas you identified in step 1, assess buy-in throughout the business and internal reporting processes, and data availability, robustness and reliability. Additional time at start and end of tomorrow for this step Workbook includes tips to help you And ideas for bringing in learning from conference sessions Held in partnership with Creating Connections Held in partnership with