On 25 November 2015 Nkonki released the findings of its fifth annual review of integrated reporting amongst the Top 100 Johannesburg Stock Exchange (“JSE”) Listed Companies (“Top 100”). Entitled “Insights into the Top 100* JSE Listed Companies Integrated Reporting Trends”, the report assesses how the Top 100 measure up in terms of applying the International Integrated Reporting Council’s (IIRC) International Integrated Reporting Framework*, released in December 2013, to their 2014 reports. This year the honours went to Tsogo Sun Holdings, with the runners-up being Royal Bafokeng Platinum Limited and ArcelorMittal South Africa Limited, in second and third place respectively. Ranked in the top 10 were Nedbank Group Limited (4th place), Liberty Holdings Limited (5th place), Nampak Limited and Redefine Properties Limited (in joint 6th place), Pretoria Portland Cement Limited (7th place), Sanlam Limited (8th place), Sasol Limited (9th place) and Barloworld Limited (10th place).
The companies were ranked on the key elements of the International Integrated Reporting Framework, Fundamental Concepts, Guiding Principles and Content Elements. Although not a recommendation of the Framework, the expert adjudication panel also allocated marks to the so-called “Wow Factor”, which indicates innovation and distinctiveness in an integrated report. While the companies did particularly well in covering Strategic Focus information as well as Comparable and Consistent information, they did score less favourably (below 50%) in Fundamental Concepts and the Wow Factor for innovation.
Through this award, Nkonki plays an active role in assisting companies to improve their reports, with the ultimate aim of improving overall integrated reporting standards in South Africa. For this reason, a rigorous mark plan is applied and as such this award can be considered an important accolade, with the winners deserving of kudos.
Winners per industry
The research report also ranked the Top 100 according to industry sectors as follows:
|Basic Materials||Royal Bafokeng Platinum Limited|
|Consumer Goods||Tongaat Hulett Limited|
|Consumer Services||Tsogo Sun Holdings|
|Financials||Nedbank Group Limited|
|Health Care||Life Healthcare Group Holdings Limited|
|Oil & Gas||Sasol Limited|
|Technology||Business Connexion Group Limited|
This year’s winners were announced at an awards event held at the JSE and hosted by well-known media personality, David O’Sullivan, and which was delivered in the format of a panel debate on the incontrovertible link between integrated thinking and integrated reporting. The guest of honour was Sarah Grey, the London-based Markets Director of the International Integrated Reporting Council (IIRC), who addressed the audience on global trends in integrated reporting and the adoption of the Integrated Reporting Framework in other parts of the world.
This is the fifth year that Nkonki has recognised the JSE Top 100 companies for their integrated reporting efforts. Beginning in 2011, Nkonki initially assessed only the Top 40 companies, as ranked by their market capitalisation. In 2012 to 2014, the scope was extended to cover the Top 100 companies as more and more listed companies began to produce increasingly comprehensive and engaging annual or integrated reports in an effort to improve their reporting efforts and their stakeholder engagement. An element of competitiveness has also become evident over the year. “As a result, there are many more reports now available in the public domain, a factor which could not be overlooked by Nkonki in these awards” concludes Masasa.
Some interesting statistics:
Market capitalisation of Top 100:
· 2014: R8,6 trillion
· 2013: R7,4 trillion
Revenue of Top 100:
· 2014: R3.2 trillion
· 2013:R2.9 trillion
Total assets of Top 100:
· 2014: R10.7 trillion
· 2013: R9.6 trillion
Lengthiest integrated report
· 2014: 516 pages
· 2013: 296 pages