New reporting method assesses more than financial success
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Integrated reporting is a new form of reporting that has emerged whereby financial measures aren’t the only method used to gauge the development and overall success of organisations.
The man behind integrated reporting
The emergence of integrated reporting reflects the views of Dr Ron Coleman’s who is passionate about moving beyond gross domestic product (GDP) as the sole measure of an organisation’s health.
Colman has spent years developing and promoting an alternative set of accounts called the Genuine Progress Index, which uses a broader and more complete set of measures including unpaid work, value of leisure time, living standards, natural capital, human impact on the environment and the costs of crime.
Colman argues that without changing our accounting methodologies, it’s impossible to create an economy that generates prosperity without harming the most valuable things on earth – people and the environment. This thinking is gaining traction around the world. In June 2012 at the Rio+20 Summit, the United Nations (UN) launched its Inclusive Wealth Index, which measures natural and human resources in addition to the economic output measured by GDP. The UK and Canadian governments are also testing broader reporting measures.
Leading the way in Australia
bankmecu recently released its first integrated report, which combined its annual report and sustainability report to provide a more holistic picture of the bank’s performance and its relationship with environmental and social factors.
“Having developed a reputation for leadership in sustainability reporting, we think it’s important to take this next step and lead the way in this emerging, more complete way of measuring our performance,” says bankmecu Managing Director Damien Walsh.
“Through our reporting we tell our customers how we put responsible banking into practice and how we help them improve their financial wellbeing, while at the same time achieving better social and environmental outcomes.
“Following the financial collapse of 2008, there is a renewed interest in a more responsible approach to capitalism and the way we measure ourselves needs to be an important part of proving that there is a viable alternative,” says Walsh.
