International Integrated Reporting Framework (IIRC)

The International Integrated Reporting Framework (IIRC) is a principles-based framework aimed at promoting more concise and efficient corporate reporting. According to clause 1.1, an integrated report is a concise communication about how an organization's strategy, governance, performance, and prospects, in the context of its external environment, lead to the creation, preservation, or erosion of value over the short, medium, and long term. Its core concept is "integrated thinking," encouraging companies to move beyond traditional financial statements and consider the six capitals (Financial, Manufactured, Intellectual, Human, Social and Relationship, and Natural) to present a more holistic value creation process.

Taiwan's Financial Supervisory Commission (FSC) has released the "Corporate Governance 3.0 - Sustainable Development Roadmap" and the "Roadmap for Taiwan to Align with IFRS Sustainability Disclosure Standards," which explicitly require listed companies to enhance ESG information disclosure and align with international standards. Starting from 2023, companies with a paid-in capital of NT$2 billion or more must prepare sustainability reports, and the IFRS Sustainability Disclosure Standards (S1 & S2) will be adopted in phases. This means that integrated reporting is not only a matter of regulatory pressure but also a market demand. Failure to effectively disclose climate-related financial risks and value creation strategies could affect investor confidence, supply chain position, and financing conditions, directly impacting corporate profitability and competitiveness.

The IIRC Framework does not directly map to specific ISO clauses but serves as a high-level reporting framework that integrates performance information from other management systems. For example, a company can manage risks following the principles and framework of ISO 31000 (Risk management) and incorporate the results into the 'Risks and Opportunities' element of its integrated report. Similarly, the seven core subjects of ISO 26000 (Guidance on social responsibility), such as labor practices, the environment, and community involvement, can provide substantive content for the human, natural, and social and relationship capitals in the report. Furthermore, the IIRC has been consolidated into the IFRS Foundation, and its principles are highly aligned with IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and S2 (Climate-related Disclosures), forming a global baseline for sustainability disclosure.

The key to successful integrated reporting is "integrated thinking," which requires cross-disciplinary integration, not traditional, single-point consulting. Winners Consulting is Taiwan's first professional management consulting firm to combine ERM, Industrial Engineering, Technology Law, Financial Engineering, Data Science, and IT. Our founder's background in preventive law helps businesses govern risks from the source. We have not only assisted top-tier companies like TSMC and MediaTek in optimizing trade secret protection (intellectual capital management) but can also vertically integrate ISO management systems, corporate governance, and internal controls to avoid redundant structures. Through our industry-academia collaboration with Taiwan Tech, our interdisciplinary team of experts can help you effectively quantify and communicate the value of the six capitals, truly implement the IIRC framework, and enhance your corporate's sustainable value.