Why we need enlightened leaders

It is a known fact: at some point the oil will run out. To continue to provide food and shelter to the growing population in the world, we produce continuously. And with that, we consume more and more energy and that inevitably will lead to problems. Fortunately, there are solutions.

Self-sufficiency
The first steps towards to provide sustainable energy have been taken, but this is not enough. At the current pace it will take a long time for sun, water and wind to become our main sources of energy. The speed must increase, and that is precisely the purpose of the Vision 2050: a roadmap towards a self-sustaining planet.

Illustration: Ivo va Leeuwen.

Changing the rules of the game
Businesses should also contribute to this, but that requires some ‘enlightened leadership’. According to Peter Bakker - President of the World Business Council for Sustainable Development (WBCSD) - there are (far) too few business leaders with a sustainability vision. So, the rules of the game must change. Together with the International Integrated Reporting Council (IIRC), the WBCSD drafted a framework for Integrated Reporting: a new way of reporting where not only financial data, but also the way value is created is playing a part. The main question: what are the social consequences - for humans, for animals and the environment - of the business activities?

Good example
It may sound complicated 'Integrated Reporting', but it is not too bad. The SAP Integrated Report 2012 is a good example of a report in which the non-financial results are clearly presented. Their rationale: ‘When products touch millions of people, safety and innovation go hand in hand.’

Leadership
Integrated Reporting is the result of ‘integrated’ management, which is the result of the 'integrated' strategy. At the core lies the 'integrated' vision. And who defines the vision of the organisation? Precisely: the leaders! As the EFQM Excellence Model 2013 under the criterion Leadership proclaims: ‘Leaders develop the mission, vision, values and ethics and act as role models’.

Sustainable future
For all organisations who do not know where to start: use the EFQM Excellence Model! Developed already 25 years ago, but still effective in providing organisations with a clear roadmap towards a sustainable - financial and non-financial - future.

Royal support for sustainable reporting

We live in the era of crisis. Whether it concerns the banking sector, real estate or individual EU countries’ budgets: they are all vulnerable and a call for change is heard. One of the most called for instruments: more and better control. This is not without cause…. 

Transparency
The same thing annoys all investors, shareholders and supervisors: the lack of transparency of businesses. The profit and loss account alone only gives some insights into the operations of organisations. More transparency is required to be able to judge how a company is really doing.

Paul Druckman about integrated reporting: 

Where are we and is it really an important issue for today? 

Value creation
The classic way of reporting is over. The time of integrated reporting has come: a new form of reporting that concerns the value creation activities of organisations. The financial performance remains important of course, but next to that there is also room for non-financial performance: how have the financial results been achieved? And what effects did the business operations have on the quality of life for people and planet? In short: how sustainable is the business conducted?



More than hype
Integrated reporting is more than ‘the newest hype’ and is embraced by more and more multinationals. By example: in 2011 only 40% of the 50 largest Dutch companies were engaged in integrated reporting. In 2012 this percentage increased to 90! Even the British crown prince Charles favours the practice of integrated reporting …


GRI G4
In May 2013 the Global Reporting Initiative (GRI) launches the new G4 guidelines for sustainability reporting. Although these guidelines will focus more on the relevance of the aspects reported (materiality), they also take a head start with regards to the integrated reporting guidelines currently under development. Luckily the EFQM Model is an integrated model and that is why the EFQM community is awaiting the new reporting guidelines with confidence!