BM&FBOVESPA begins the 2014 “Report or Explain” Cycle with a new development: in an evolutionary process aligned to the international trend of integrating financial and non-financial information in annual corporate reports, the initiative is now named “Report or Explain for Sustainability or Integrated Reports” (the previous description was Report or Explain for Sustainability Reports or Similar).
In this way, BM&FBOVESPA expresses support for the International Integrated Reporting Council (IIRC), whose mission is to create a globally-accepted model for integrated reporting. This support dates back to the start of the movement, when BM&FBOVESPA hosted a visit of the IRRC board to Brazil, in November 2011.
“Report or Explain” is a recommendation that was launched by the Exchange in December 2011 in partnership with the Global Reporting Initiative (GRI). It seeks to ease market access (in particular that of analysts and investors) to non-financial information, which has an ever greater impact on investment decisions.
In the last measurement, in June 2013, 66.29% of companies adhered to the initiative, publishing this information or explaining why they had not done so yet. In this way they demonstrated a commitment to risk management and their awareness of opportunities related to the sustainability agenda.
In order to participate, companies must disclose in item 7.8 of the Reference Form, by May 31, whether they publish a sustainability or integrated report. If so, they must name the website on which it can be accessed. If not they must explain why not.
The new “Report or Explain” data bank will be published at the end of June on the BM&FBOVESPA website at the following link: (http://www.bmfbovespa.com.br/en-us/markets/equities/companies/sustainability-report.aspx?Idioma=en-us).