ICASL-CAPA INTERNATIONAL CONFERENCE INTEGRATED REPORTING Sri Lanka - 20 October 2012

1. ICASL-CAPA INTERNATIONAL CONFERENCE INTEGRATED REPORTING Sri Lanka - 20 October 2012 PANEL SESSION – 1 Will Integrated Reporting Get Off The Ground ? INTEGRATED REPORTING BANGLADESH PERSPECTIVE Anwaruddin Chowdhury Member Council & Past President ICAB Director CAPA Board

2. IR OVERVIEW - BANGLADESH POSITION Global Economic Challenges MDG , macro economic stability, investments , CMD and growth -impacted by global trends. Transformation of Business Operations and Resource Management Corporate Reporting Models - Value Reporting /Sustainable Development IR Framework –Conceptualization-Definitions Corporate Reports – Current Status and Trends Govt. Development Strategies-Commitment to Sustainable Growth Green Banking Guidelines Issued – Green Reporting Mandated by BB No Legal Mandate for Integrated Reporting or Sustainability Reporting IR Practices Virtually Non-Existent / SR Limited Applications Regulatory Directives /Voluntary Practices of CG, CSR, Green Reporting. Awards for Financial Reporting/CG/CSR & Environment Reporting Comprehensive Financial Statements & Disclosures - economic, governance , social , environment & sustainability issues

3. IR BENEFITS Demonstrates Linkages Between Strategies , Governance and Performance- Reflecting Economic , Social & Environment Aspects Representation of Resource Stewardship/Value Reporting for Stakeholders Needs IR Framework Ensuring Sustainable Strategies for Enhanced Accountability & Transparency in Bangladesh Government Decisions Increased Credibility in Public and Private Sector Reporting Harmonization of FR with SR - Unique Business Reporting Model for Bangladesh Address Manifold Impediments / Challenges for Socio-Economic Development Optimum Utilization /Reporting of Scarce Resources for Sustainable Development Encourage Sustainable Development for Inclusive Economic Growth. Reduce Corruption /System Loss through increased Transparency. Promote Investment , CMD, Industrialization, Exports and GDP Growth.

4. IR IMPEDIMENTS Lack of Awareness of Value Reporting & Benefits Conservative Mindset Averse to Changes Increased Cost of Doing Business No Legal Mandate (Limited Regulation) for IR Practice Lack of Value Reporting Framework or Guidelines Inadequate Knowledge , Technical Skills & Professional Competence Lack of Measurement Parameters for Non Financial Elements Weak Governance Models , particularly in Private Companies & NGOs Inadequate Focus on Conservation & Environment Friendly Technologies Non Availability of relevant Data - cost prohibitiveness

5. IR CHALLENGES Developing Adequate Awareness for Value Reporting (SR/IR) Mindset Changes - Profession , Business , Regulators and Civil Administration Formulating Parameters for Measuring Non Quantifiable ESG Aspects . Devising Value Reporting Guidelines for NGOs, Public and Private Sector Entities. Acquiring Professional Knowledge, Skills and Competence for Value Reporting Financial Resources/Donor Support for Conversion to Value Reporting Practices Developing Due Diligence and Good Governance Strategies for IR Practices Overcoming Analytical Weakness and Provision for Availability of Relevant ESG Data Institutional Arrangement / Regulatory Framework for Governance of IR Processes

6. ROLE OF ACCOUNTANCY PROFESSION Well Positioned to Progress Value Reporting (IR) Implementation through Advocacy for concerted awareness development Motivate Mindset Changes - Investors , Public and Private Sectors Entities, Regulators , Government Agencies & other Stakeholders Maintain regular interaction/consultation with IIRC for Guidance and Support Professional Training for Technical Skills Development in Value Reporting Devise Sustainable Strategies for IR for Private & Public Sector Entities Design Appropriate Methodologies for amalgamation of FR with SR Formulate Guidelines & Measurement Parameters for Non-financial Aspects Adoption/ Customization of IR Framework for Bangladesh Perspective Facilitate Regional Harmonization for Implementation of Best Global Practices

7. WAY FORWARD Development of Action Plan : Main Directions – Responsibility – Timeframe Provision for Legal Mandate - Policy Decisions at Legislative/Regulatory levels Fund Procurement / Development Partner Support Inclusion of IR Agenda in WB Funded PPP Project between ICAB & CAG Formation of High Powered Taskforce – Representation from Professional Bodies, Regulators, Ministries, Chambers & Bourses for Implementation of Integrated Reporting in Bangladesh within a stipulated timeframe (5-10 Years) Formulation of Measurement Parameters for ESG Perspective Development of Value Reporting Expertise, Standards & Practices Initiate Measures for Consolidation of Existing FR into IR Practices Synergize Strategic Partnerships among relevant Institutions (IIRC …) Incentivize IFAC /IASB /ISAR to formulate Standards/Guidelines on IR

8. ICAB INITIATIVES Organized major International Conference in November 2011 on Best Practices and Reporting For Sustainable Development - addressed by professional experts -IFAC, GRI, Prince’s Project, WB , Standard Setters. Dedicated Workshop on Integrated Reporting Catalyzes / Encourages Professional and Corporate understanding about Challenges, Benefits and Value additions of IR Applications. Apprises and motivates Government planners, regulators and other stakeholders to effect long term IR Transitions Engages in advocacy for Value Reporting application(SR/IR) . Motivates Professionals & Corporates for Implementation of IR Practices Organizes Annual Best Published Reports & Corporate Governance Award Organizes CPD Learning/ Skills Development on topical Issues like SR/IR

9. ICAB POSITION STATEMENT • Albeit a late starter, the ICAB is now moving in strides and has positioned itself formidably to develop awareness and promote the application of Integrated Reporting in the financial and corporate sectors of Bangladesh. • As the custodian of corporate reporting in the country, the ICAB has taken-up its position and is now firmly committed to catalyze and encourage the development (evolution), implementation of IR practices through dissemination of its importance, benefits and value additions to diverse stakeholders and charting the future dimensions of best global practices in IR. The ICAB is considering to formulate Value Reporting Guidelines and develop a broad-based Business Case as a marketing tool to promote conceptualization and understanding for implementation of IR in the financial and corporate sectors. This will inspire the CAG office to contemplate moving to IR in certain types of public sector entities.

10. CONCLUSION Reporting should be driven by business models linked to strategic, potential and value generation. IR provides sustainable value additions for relevant stakeholders - enabling better decisions, consistent with sustainable development and economic growth of Bangladesh. The ICAB is well positioned to develop consistent awareness , promote and support the progressive application of global best practices in Integrated Reporting. Albeit IR will not be adopted in the near foreseeable future, there are strong potentials for implementation of Integrated Reporting practices in the long-term – in the financial and corporate sectors, NGOs and public sector entities of Bangladesh.

11. Will IR get off the ground ? Looks Like –Yes, (If so-How and When ? Implications ?) (If not –Reasons & Remedies ?)

12. MESSAGE Let’s Develop Awareness, Establish Strategic Directions, Ensure Strengthening Institutions, and Catalyze Leadership Decisions for IR Practices Lets’ Go Ahead and Enhance the Professional Image – Meet the Challenges and Utilize the Opportunities - Devise Sustainable Strategies for Implementation of Best Integrated Reporting Practices in the CAPA Region May God’s Providence be Our Guide !! Thank You

13. Appendix I – Global Status of Integrated Reporting

14. Appendix II – IR Perspectives -Performance & Values Source : www.sustain2green.com