EER Navigational Resource

 

EER frameworks and guidance

Here we have provided only a summary of select resources available. The resources listed below are by no means a complete list of EER resources available. We encourage you to consult the source documents.  

Please note that including a resource below does not imply any endorsement of it by the XRB.

There is a multitude of frameworks, guidance and initiatives in the EER arena.

Applying an EER framework or other forms of guidance (or a combination of frameworks/guidance) can greatly assist with the reporting of EER information. However, we have heard concerns that the proliferation of resources can make it challenging for organisations to make an informed decision when selecting a suitable resource (or combination of resources) to apply.

To help identify prominent EER resources and make better-informed decisions when considering EER we have provided a summary of select local and prominent international resources available.

These resources should be seen as complementary to each other, rather than conflicting or competing resources. Many entities in New Zealand have applied, in full or part, the Integrated Reporting <IR> Framework and GRI Standards, as well as reporting against the UN SDGs.

Resources

The NZX operates New Zealand capital, risk and commodity markets.

 

 Resource

Date issued

NZX Code cover

NZX Corporate Governance Code (NZX Code)


May 2017

Applies for all reporting periods from 1 October 2017


Applies to all listed issuers on the NZX Main Board that do not fall under an exception in the Listing Rules.

Structured around eight principles: The NZX Code outlines recommendations under each principle recommending areas of good practice.

Principle four covers reporting and disclosure. Recommendation 4.3 covers non-financial reporting.

Under the NZX Code, if the Board of an issuer considers that a recommendation is not appropriate because it does not fit the issuer’s circumstances, it is entitled not to adopt it. If it does not adopt it, it must explain why it has not. This is the basis of the ‘comply or explain’ (‘if not, why not’) approach.


 

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Date issued

 ESG Guidance Note cover  ESG Guidance Note

 Dec 2017


For NZX listed issuers considering the disclosure of ESG factors under the NZX Code, this guidance is built on the understanding that most businesses will have some sort of interaction with one or more of the branches of ESG. While not exhaustive, it aims to help issuers better understand the benefits of ESG reporting and the global reporting regimes available.

Also references to other resources for guidance on materiality. The NZX short-listed the global reporting frameworks down to three commonly used in Australia and New Zealand, namely, GRI, <IR> and UNGC. 


 

 Resource

Date issued

 Guidance Note - Diversity Policies and Disclosures Cover

Guidance Note: Diversity Policies and Disclosures

 Feb 2015


Covers reporting gender composition, and diversity policies in a variety of forms.

Note that the NZX Rules do not require a listed company to adopt a diversity policy. However, if the listed company does adopt a diversity policy then a statement in the company’s Annual Report evaluating the diversity policy is required by NZX.

The FMA regulates capital markets and financial services in New Zealand.

 

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Date issued

 Disclosing non-GAAP financial information cover

Disclosing non-GAAP financial information

Jul 2017



Sets out the FMA’s expectations on the use any non-GAAP financial information an FMC reporting entity discloses outside its financial statements, including any non-GAAP information presented on a pro forma basis.

It contains the general principles that FMC reporting entities should follow when presenting non-GAAP financial information. Entities following these principles will contribute to the reliability and comparability over time of non-GAAP financial information and reduce the potential for misleading disclosure. 


 

 Resource

Date issued

 Corporate Governance in NZ cover

Corporate Governance in New Zealand—Principles and guidelines

 

Feb 2018


Assists directors, executives and advisers of non-listed and public sector companies, and other entities, to apply corporate governance principles to their particular entity.

Re-issued in February 2018 to remove any unnecessary overlap with the NZX Code, particularly to ensure the NZX Code is the primary source for requirements for listed companies.

Also updated in a number of places to bring it in line with corporate governance developments in New Zealand and globally.

A sub-board of the XRB responsible for the development and issue of accounting standards in New Zealand.

 

 Resource

Date issued

 FRS-42 cover

Financial Reporting Standard No. 42

Prospective Financial Statements

(FRS-42)

 Dec 2005


An accounting standard that applies to entities that are required—by legislation or regulation—to present general purpose prospective financial statements that comply with GAAP.

Hence, compliance is not compulsory in other circumstances, such as when entities voluntarily provide forward-looking information in their annual report.

<IR> and GRI are the most widely adopted reporting frameworks used in New Zealand for organisations to disclose non-financial information.

<IR> and GRI coexist rather than requiring one to be chosen over the other.Member of the CRD

The IIRC is a global coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs. The coalition is promoting communication about value creation as the next step in the evolution of corporate reporting.

 

 Resource

Date issued

The International IR Framework cover

The International <IR> Framework

Dec 2013


A reporting framework designed to create a more holistic picture of how a company creates value. Introduces the concept of six capitals (financial; manufactured; intellectual; human; social, cultural and relationship; and natural) whose values increase or decrease as they are transformed through the organisation’s business model. The primary purpose of an integrated report is explaining to stakeholders the focus on value creation across the six capitals, rather than value extraction.

<IR> and GRI are the most widely adopted reporting frameworks used in New Zealand for organisations to disclose non-financial information.  They co-exist rather than requiring one to be chosen over the other.

Get additional resources on IR here

  • Member of the CRD
  • GRI is an independent international organisation that has pioneered sustainability reporting since 1997. 

 

 Resource

Date issued

GRI Sustainability Reporting Standards cover

GRI Sustainability Reporting Standards (GRI Standards)

Issued Oct 2016, effective 1 Jul 2018. Early adoption encouraged.


Designed to be used by organisations to report about their impacts on the economy, the environment, and/or society.

Structured as a set of interrelated standards developed primarily to be used together to help an organisation prepare a sustainability report which is based on the Reporting Principles and focuses on material topics.

Preparing a report in accordance with the GRI Standards demonstrates that the report provides a full and balanced picture of an organisation’s material topics and related impacts, as well as how these impacts are managed.

A report in accordance with the GRI Standards can be produced as a stand-alone sustainability report, can reference information disclosed in a variety of locations and formats (e.g., electronic or paper-based).

Any report prepared in accordance with the GRI Standards is required to include a GRI content index, which is presented in one location and includes the page number or URL for all disclosures reported.

<IR> and GRI are the most widely adopted reporting frameworks used in New Zealand for organisations to disclose non-financial information. They  co-exist rather than requiring one to be chosen over the other

  • CDSB is an international consortium of business and environmental NGOs.
  • Member of the CRD.

 

 Resource

Date issued

CDSB Framework cover CDSB Framework

 Apr 2018


For reporting environmental information, natural capital and associated business impacts and designed to help organisations prepare and present environmental information in mainstream reports for the benefit of investors.  Allows investors to assess the relationship between specific environmental matters and the organisation's strategy, performance and prospects.

Updated in April 2018 to align with the recommendations of the Task Force on Climate-related Financial Disclosures (see next resource) and other key mainstream reporting requirements, helping to streamline the reporting cycle for many organisations.

The FSB is the G20’s Financial Stability Board—an international body that monitors and makes recommendations about the global financial system. 

 

 Resource

Date issued

Climate-related Financial Disclosures cover Taskforce on Climate-related Financial Disclosures

Jun 2017


Established recommendations for disclosing clear, comparable and consistent information about the risks and opportunities presented by climate change.

Since the publication of the previous version of the CDSB Framework in June 2015, the G20’s Financial Stability Board convened a Task Force on Climate-related Financial Disclosures (TCFD).  The Taskforce produced its final report in June 2017.  

There are significant parallels between the TCFD recommendations and the updated CDSB Framework, which are highlighted throughout, so the CDSB Framework is an essential tool for companies seeking to implement the TCFD Recommendations.

An international organisation founded in 1945. Currently made up of 193 member states, one of which is New Zealand.

 

 Resource

Date issued

UN Global Compact logo

UNGC (United Nations Global Compact)

2018

Requires companies to commit to a set of ten universal principles concerning human rights, about environment and anti-corruption.

Outlines a three-step process to embed the Sustainable Development Goals (SDGs) into existing business and reporting processes (see next resource).

Helps business to better report its impact on the SDGs and addresses the information needs of relevant stakeholders.


Sustainable Development Goals (SGCs)

 

 Resource

Date issued

UIN Sustainable Development Goals array

Sustainable Development Goals (SDGs)


Adopted on 25 September 2015 

 


Provides a coherent, holistic, integrated framework for addressing the world’s most urgent sustainability challenges and creating a better future for all.

In 2015, with the 2030 Agenda for Sustainable Development, the world’s leaders set out on an ambitious path to end poverty, fight inequality and injustice, and protect the planet.

The Member States of the United Nations unanimously agreed upon the 17 Sustainable Development Goals (SDGs), making them the world’s agenda for sustainable development.

The success of the agenda will be based on collaborative efforts by all parties in society, including businesses.

  • An independent standard-setting arm established by the the SASB Foundation, the Sustainability Accounting Standards Board (SASB), sets industry-specific sustainability disclosure standards tied to the concept of materiality to investors.
  • Member of the CRD.

 

 Resource

Date issued

SASB logo

The sustainability accounting standards

Ongoing


Develops 77 industry-specific sustainability accounting standards suitable for disclosure in standard filings such as the Form 10-K required by the US Securities and Exchange Commission.

As the missions of CDSB and SASB are aligned, they recognise close cooperation is equally beneficial to both organisations and we are, in turn, supported by and receive governance and technical input from a large number of similar organisations.

The CDSB Framework cross-references SASB's standards as a recognised approach.

SASB’s Field Guide provides investors and companies with a high-level overview of the key characteristics of an industry, while also addressing what related sustainability challenges it faces compared to other industries.

Helping readers easily and quickly understand the sustainability-related risks and opportunities of each of the 77 industries, the guide identifies specific SASB topics and metrics per industry, how they are linked to value and their financial impact.

Have a look

  • The standard-setting body of the IFRS Foundation, made up of experts from diverse professional backgrounds and geographical regions
  • Member of the CRD.

 

 Resource

Date issued

IFRS Practice Statement cover

IFRS Practice Statement 1 - Management Commentary

Dec 2010


Provides a broad, non-binding framework for presenting management commentary on financial statements that have been prepared in accordance with IFRS Standards.

Entities preparing general purpose financial reports in accordance with NZ IFRS, may elect to apply the principles contained in MCPS 1 to management commentary that relates to those financial reports.

In November 2017, the IASB commenced a project to revise and update the IFRS Practice Statement 1 Management Commentary (Practice Statement) issued in 2010.

Here the IASB will consider how broader financial reporting could complement and support financial statements based on IFRS.

It expects to publish an Exposure Draft in the first half of 2020.

A global consulting and standards firm that works with business, governments and multi-lateral organisations to advance responsible business practices and improve their long term performance.

 

 Resource

Date issued

AccountAbility  Stakeholder Engagement Standard cover AccountAbility’s AA1000 Series of Standards

Ongoing


Principles-based Standards and Frameworks used by a broad spectrum of organisations – global businesses, private enterprises, governments and civil societies – to demonstrate leadership and performance in accountability, responsibility and sustainability.

IFAC (International Federation of Accountants) and IIRC

 

 Resource

Date issued

Materiality in IR cover

Materiality in <IR>

Nov 2015


Explains materiality and the corresponding materiality determination process, in the context of Integrated Reporting. Also outlines expectations for materiality-related disclosures and looks at how to prepare content, establish parameters for the materiality determination process, how to embed the process into management and the extent to which integrated thinking underpins materiality.

The interpretation of materiality varies across report forms due to differences in audience, purpose and scope. In Integrated Reporting, a matter is material if it could substantively affect the organisation’s ability to create value in the short, medium and long term.

The process of determining materiality is entity-specific and based on industry and other factors, as well as multi-stakeholder perspectives.


International Integrated Reporting Council (IIRC)

 

 Resource

Date issued

IR Examples Database web page view

<IR> Examples Database

 Ongoing


Contains examples of emerging practice in Integrated Reporting that illustrate how organisations are currently reporting concise information about how their strategy, governance, performance and prospects, in the context of their external environment, lead to the creation of value over the short, medium and long term.

Also features extracts from reports that illustrate <IR> guiding principles, content elements and fundamental concepts and shows reports that have been recognised as leading practice by a reputable awards process or through benchmarking.  IIRC staff provide the commentary.


Integrated Reporting Committee (IRC) of South Africa

 

 Resource

Date issued

Starter Guide to IR cover

Starter Guide to <IR>

Aug 2018


A practical guide for organisations in South Africa and other countries embarking on their integrated reporting journey, first published in 2014 and since updated.


<IR> Academic Network

Brings together leading academics in this field, ensuring the IIRC is abreast of relevant academic thinking, informing its work at every stage.

Provides a space for connecting theory and practice by bridging academia to those who directly prepare and benefit from integrated reports.

 

 Resource

Date issued

The IR Academic Database image

<IR> Academic Database

Aug 2018


In August 2018 The International Integrated Reporting Council (IIRC) launched a new <IR> Academic Database, bringing together over 200 academic studies highlighting the potential positive ramifications of adopting integrated reporting, as well as commenting on emerging best practice.

The Database includes Integrated Reporting related academic research, both published (books, chapters and articles) and unpublished (dissertations, PhD theses, and working papers).

A useful resource if you need to make a case for integrated reporting. 

Here we provide you more information about the GRI Standards.

These are divided into four series:

  1. Universal Standards 100 series, including three universal Standards: GRI 101: Foundation, GRI 102: General Disclosures, GRI 103: Management Approach;
  2. Topic-specific Standards 200 series (Economic topics);
  3. 300 series (Environmental topics); and
  4. 400 series (Social topics).

GRI 101 Foundation

 

 Resource

Effective date

GRI 101 Foundation

GRI 101 Foundation

Jul 2018


The starting point for using the set of GRI Standards.  Sets out the Reporting Principles for defining report content and quality, includes requirements for preparing a sustainability report in accordance with the GRI Standards, and describes how the GRI Standards can be used and referenced.

Also includes the specific claims required for organisations preparing a sustainability report in accordance with the Standards, and for those using selected GRI Standards to report specific information. 

By applying the materiality principle from this standard, you identify your material topics—those with the most significant impacts and influence on your stakeholders. This focus on materiality helps you report on the impacts that matter most.

Based on your material topics, you select the topic specific standards that are relevant for you.


GRI 102 General Disclosures

 

 Resource

Effective date

 GRI 102

GRI 102 General Disclosures

Jul 2018


Used to report contextual information about an organisation and its sustainability reporting practices. Includes information about an organisation’s profile, strategy, ethics and integrity, governance, stakeholder engagement practices, and reporting process.


GRI 103 Management Approach

 

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Effective date

 GRI 103

GRI 103 Management Approach 

Jul 2018


Used to report information about how an organisation manages a material topic. Designed to be used for each material topic in a sustainability report, including those covered by the topic specific GRI Standards (series 200, 300, and 400) and other material topics.

Applying GRI 103 with each material topic allows the organisation to provide a narrative explanation of why the topic is material, where the impacts occur (the topic Boundary), and how the organisation manages the impacts.


The 200 series of the GRI Standards 

 

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Effective date

 200 Series of GRI Standards

The 200 series of the GRI Standards 

Jul 2018


Includes topic-specific Standards used to report information on an organisation’s material impacts related to economic topics.

For example, GRI 203: Indirect Economic Impacts 2016; GRI 205: Anti-corruption 2016.


The 300 series of the GRI Standards 

 

 Resource

Effective date

 The 300 Series of GRI Standards

The 300 series of the GRI Standards 

Jul 2018


Includes topic-specific Standards used to report information on an organisation’s material impacts related to environmental topics.

For example, GRI 303: Water and Effluents 2018, GRI 305 Emissions 2016.


The 400 series of the GRI Standards 

 

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Effective date

 The 400 series of GRI Standards

The 400 series of the GRI Standards 

Jul 2018


Includes topic-specific Standards used to report information on an organisation’s material impacts related to social topics.

For example, GRI 403 Occupational Health and Safety 2018, GRI 408 Child Labor 2016.


GRI reporting database 

 

 Resource

Date Issued

 Sustainability Reporting Database

GRI Reporting Database

 

Ongoing


A free database owned and operated by GRI.

Organisations can register their sustainability, corporate responsibility, or integrated report.

Global Reporting Initiative (GRI) and United Nations Global Compact (UNGC)

 

 Resource

Date issued

 Business Reporting on the SDGs cover

Business Reporting on the SDGs: An Analysis of the Goals and Targets

 2017


A first step towards a uniform mechanism for businesses to report on their contribution to, and impact, on the United Nation's Sustainable Development Goals (SDGs) in an effective and comparable way.

Contains a list of existing and established disclosures that businesses can use to report, and identifies relevant gaps, where disclosures are not available. Also lists illustrative actions that businesses can take to make progress towards the SDG targets.


 

 Resource

Date issued

 Integrating the SDGs into Corporate Reporting

Integrating the Sustainable Development Goals into Corporate Reporting: A Practical Guide

 2018


Outlines a three-step process to embed the Sustainable Development Goals (SDGs) into existing business and reporting processes. Helps business to better report their impact on the SDGs and address the information needs of relevant stakeholders.

Follows an approach that is aligned with the UN Guiding Principles on Business and Human Rights and the GRI Standards.


 

 Resource

Date issued

 SDG Compass

SDG Comnpass

 2015


Guides companies on how they can align their strategies as well as measure and manage their contribution to the realisation of the SDGs.

Companies can apply the five steps to set or align their course, depending on where they are on the journey of ensuring that sustainability is an outcome of core business strategy.

Not all 17 SDGs will be equally relevant for every entity. The extent to which your entity can contribute to each, and the risks and opportunities they individually represent, will depend on many factors.

Taking a strategic approach to the SDGs, the first task should be to conduct an assessment on the current, potential, positive and negative impacts that your business activities have on the SDGs throughout the value chain.

This will help you identify where positive impacts can be scaled up and where negative impacts can be reduced or avoided.


Global Reporting Initiative (GRI) and United Nations Global Compact (UNGC) and World Business Council for Sustainable Development

 

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Date issued

   SDG Compass website

SDG Compass website—

Learn More About the SDGs

 Ongoing


 

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Date issued

   SDG Compass Business Tools

SDG Compass website—

Inventory of Business Tools

 

 Ongoing


 

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Date issued

   SDG Compass Business Indicators

SDG Compass website—

Inventory of Business Indicastors 

 Ongoing

  • The standard-setting body of the IFRS Foundation, made up of experts from diverse professional backgrounds and geographical regions
  • Member of the CRD.

 

 Resource

Date issued

IFRS Practice Statement cover

IFRS Practice Statement 1 - Management Commentary

Dec 2010


Provides a broad, non-binding framework for presenting management commentary on financial statements that have been prepared in accordance with IFRS Standards.

Entities preparing general purpose financial reports in accordance with NZ IFRS, may elect to apply the principles contained in MCPS 1 to management commentary that relates to those financial reports.

In November 2017, the IASB commenced a project to revise and update the IFRS Practice Statement 1 Management Commentary (Practice Statement) issued in 2010.

Here the IASB will consider how broader financial reporting could complement and support financial statements based on IFRS.

It expects to publish an Exposure Draft in the first half of 2020.

The CRD participants are the:

  • CDP (see Global initiative 3. below)
  • Climate Disclosure Standards Board (CDSB)
  • Financial Accounting Standards Board (FASB)*
  • Global Reporting Initiative (GRI)
  • International Accounting Standards Board (IASB)
  • International Organisation for Standardisation (ISO)
  • Sustainability Accounting Standards Board (SASB).

The CRD is convened by the International Integrated Reporting Council (IIRC).

Corporate Reporting Dialogue logo 

This 2014 inititaive is designed to respond to market calls for greater coherence, consistency and comparability between corporate reporting frameworks, standards and related requirements.


* Observer.


The Better Alignment Project

In November 2018 the CRD announced a ground-breaking new two-year project focused on driving better alignment in the corporate reporting landscape, to make it easier for companies to prepare effective and coherent disclosures that meet the information needs of capital markets and society.

Have a look


Corporate Reporting Landscape Map

The Landscape Map home page view

This provides a snapshot of corporate reporting initiatives and is intended to be a simple navigational tool. Users of the map should consult source documents for complete framework or standard details and implementation requirements.

This is a useful map constructed through the lens of <IR>.

Have a look

A World Business Council for Sustainable Development (WBCSD) initiative developed by the Climate Disclosure Standards Board (CDSB) and Ecodesk and supported by the Gordon and Betty Moore Foundation.

The Reporting Exchange logo

This  is a free online platform that connects you to reliable, comparable information on sustainability reporting requirements and resources.

It provides you an in-depth and up-to-date coverage across over 70 sectors and 60 countries. It has an interactive map to search for reporting requirements and resources from 60 countries. It contains 1,882 global reporting provisions.

You can build your profile and they will match reporting provisions relevant to your specific country and sector, as well as subjects and SDGs of interest.

Have a look

  • Formerly the Carbon Disclosure Project
  • An international not-for-profit organisation that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests.
  • Member of the Corporate Reporting Dialogue (see Global initiative 1. above).

CDP logo

The CDP runs a global disclosure platform that enables companies, cities, states and regions to measure and manage their environmental impacts. 

It asks companies, cities, states and regions for data on their environmental performance. CDP then transforms that data into detailed analysis on critical environmental risks, opportunities and impacts.

Investors, businesses and policy makers use the data and insights to make better decisions, manage risk and capitalise on opportunities.

Have a look