High-level support for the triple bottom line Conversing through convergence Also at Black Sun’s Corporate Reporting Conference, a representative With integrated reporting being high on the from Novo Nordisk, a corporate often referred to as leading the way in agenda for change, there is real potential for integrated reporting was present to give an insight into how their journey to integration to transform the mainstream integrated reporting began and has continued over the years. corporate reporting culture. Indeed, there has At pharmaceutical company Novo Nordisk, integrated reporting been huge support for the IIRC since its has been the order of the day for over seven years. The company has inception, and proposals for integrated reporting striven to marry financial and non-financial information within their report will be put forward at the G20 Finance Ministers and accounts – an achievement which Susan Blesener, Director of meetings in October 2011. Corporate Accountability, puts down to high-level managerial support for We have recently carried out our own the triple bottom line. research into international integrated reporting “It’s always been a guiding business principle for the company”, trends and it is clear that companies are she explains. “The triple bottom line is there in our Incorporation recognising the need to express their value Document, in our Articles of Association. From very early on the Board beyond merely the financials. However, the wanted management to use multiple dimensions of performance in challenge comes in demonstrating how they link making business decisions. For management to do that, they wanted the non-financial issues to their business strategy, information put together.” evidencing the company value in the short, Novo Nordisk has also produced standalone CR reports in the medium and long-term. Companies ought to be past, and Susan is keen to distinguish between conventional sustainability encouraged for the steps they take - new reporting and integrated reporting, the main difference being that the approaches acknowledged, learnings shared, sustainability information contained in an integrated report must be related and innovations commended - as it is through to strategy and governance. For example, at Novo Nordisk, “the noncompany ‘doing’ and ‘willingness’ that financial information that goes in the annual report is what we consider to integration will be achieved. be important in managing the company.” At Black Sun we believe that if this Asked whether this means that the sustainability material high-level universal buy-in continues, there is included in an integrated report is somewhat narrow in scope? Blesener every chance of laying successful foundations responded with “Absolutely, we very much start out by saying we are not for a truly robust and international framework for going to please everyone. We are not going to include all the information integrated reporting. Maybe then we’ll see that everyone is interested in. That is not possible. If we were to do that, greater convergence and communication within the report would not be as valuable as it is.” This is certainly a realistic organisations. Then, when people sit down to and practical approach which other companies could take heart from discuss their annual report, not only will they and remember when approaching and implementing their own have spoken before, they’ll be part of an integrated reporting. ongoing conversation that will steer the For stakeholders interested in other non-financial information, business long into the future. Novo Nordisk hosts a range of material online and answers investor questionnaires. The main point, however, is that “a clear distinction is made” between these broader sustainability issues and the View the presentations by IIRC and Novo Nordisk on focused information integrated reporting here contained in their integrated reports. “This”, says Blesener, “provides an added layer of transparency”. www.blacksunplc.com www.blacksunplc.com © Black Sun Plc 2011 19