Integrated Reporting At Vancity (Nov 2010)

Integrated reporting in practice

Presented by Joanne Westwood, Manager, Accountability Reporting

November 25, 2010

What I’ll talk about

Agenda

Reporting history

Integrated reporting: what and why?

Overview of Vancity’s Integrated Report & process

Benefits of Integrated Reporting

Reporting challenges

The future

Vancity at-a-glance

$14.5 bn assets 60 branches 407,000 members

MemberMember-owned, community based, full service financial institution. Major activities include day to day banking, lending and investment services.

Toward integration (2008 onwards)

Paving the way (2000-2007)

The early years (1992-1997)

Emerging standards (1998-1999)

Reporting evolution

Board demands greater disclosure

1993–adopt Ceres Principles

Social section added to Annual Report

1996–commit to a social audit

1997–Social Report

External: standards, external recognition, awards

Internal: Vancity’s actions

1992–Vancity ranks poorly in a survey of FIs on disclosure of social and environmental disclosure.

Vision to redefine wealth

Oversight of non-financial reporting moves to Audit Committee

Annual reporting cycle

Release 2008-09 Accountability Report and plan for a 2010 integrated Annual Report

Formal Board Committee established to provide oversight

Two-year reporting cycle

One of 20 organizations to pilot GRI guidelines

Adopt AA1000 framework

1999–Exposure drafts of GRI and AA1000 released

GRI and AA1000 evolve

2002–03 report ranked #1 in Canada

2004-05 report wins best sustainability report in North America

Economic crisis drives increased disclosure on non-financial issues

2010–International Integrated Reporting Committee

2010–Vancity ranks 3rd of Best 50 Corporate Citizens in Canada

2000–Statement of Values and Commitments

2004–GRI Organizational Stakeholder

Inform FS sector supplement and revisions to AA1000

2008–1st FI in North America to report to GRI Level A+

An integrated report is one report that will:• Demonstrate, to stakeholders, how well Vancity is

creating environmental, social and economic value through its business strategy and culture

• (Begin to) illustrate the link between financial and non-financial performance …and hence articulate the business case for sustainability

• Reflects Vancity’s business strategy and priorities (output), as well as informs Vancity’s business strategy and priorities (input)

Integrated reporting: what it means to Vancity

Integrated reporting: why?

Overview of Vancity’s reporting and planning process

Wealth redefined

Overview of Vancity’s reporting and planning process

Alignment of strategy, planning and accountability reporting

Annual cycle

Overview of Vancity’s proposed integrated 2010 Annual Report

•About us – includes statement from CEO and Board Chair

•Performance snapshot – includes KPIs and targets

•Business review – based on Vancity’s business model

•Summarized consolidate financial and non-financial statements – includes auditors’ reports

•Glossary of terms

•Summarized GRI content index

•Complete consolidated financial and non-financial statements

•Detailed GRI content index

•Disclosure on Management Approach – to meet GRI reporting requirements

•More on materiality and stakeholder engagement

•More on our reporting history and process

Printed report www.vancity.com

• Reporting practices are aligned with our vision and co-operative values

• One, consistent story to tell stakeholders

• An expanded audience for both financial and sustainability information

• Increased efficiencies and reduced costs? Sure – but this is not a key objective

• Key benefit: it creates long term business value by embedding sustainability throughout the business and driving better (holistic and long-term) management decisions.

Benefits of integrated reporting

• Collecting and verifying data, and writing report, in time to meet existing annual report deadlines

• Keeping the report short (focused) through application of materiality principle

• Managing auditors (firms or teams) with two different assurance objectives and working with two different reporting frameworks

• Intellectual challenge of integrating financial and non financial information in one document

• Aligning planning and reporting processes and ensuring the same information informs both

Reporting challenges