Nkonki SOC Integrated Reporting Awards 2014

Eskom, Transnet, and Telkom respectively have taken the top three spots at this year’s Nkonki SOC Integrated Reporting Awards. Now in their third year, the awards recognise the top performing state-owned entities in integrated reporting, including areas such as strategy, governance and financial performance.

“The top three SOCs are worthy winners and in many instances leaders in the sustainability and integrated reporting fields. All the SOCs in the top ten have exceeded the expected minimum disclosure requirements” said Sindi Zilwa, CEO of Nkonki.

In the three years that the awards have been running, Nkonki has found that many of the SOCs are complying with the King Code disclosure requirements, and are also stretching themselves to comply with the framework for Integrated Reporting. Overall the results indicate at a glance that on average, SOC’s exceed 50% of the expected minimum disclosure requirements for at least 55% (2012:53%) of the expected disclosures. However, they fall below 50% of the expected minimum disclosure requirements for at least 45% (2012: 47%) of what is expected to be disclosed.

In 2012 when the inaugural awards were held (based on performance in 2011) , only three SOCs qualified for recognition as the others scored below the “D” rating which is the 50% mark for the expected minimum disclosure requirements. A year later there was a marked improvement as seven SOCs qualified as finalists. This year, ten SOCs qualified as finalists.

The rest of the top ten is as follows:

  • 4th place: Denel SOC Limited with a “C” rating (60 to 69%)
  • 5th place: Industrial Development Corporation with a “C” rating (60 to 69%);
  • 6th place: South African Forestry Company SOC Limited with a “D” rating (50 to 59%)
  • 7th place: Development Bank of Southern Africa with a “D” rating (50 to 59%);
  • 8th place: South African Nuclear Energy Corporation SOC Limited with a “D” rating (50 to 59%);
  • 9th place: Land and Agricultural Development Bank of South Africa with a “D” rating (50 to 59%); and
  • 10th place: Air Traffic and Navigation Services Company SOC Limited with a “D” rating (50 to 59%)

The judging and adjudication process has been rigorous, assessing criteria relating to, among others, ethical Leadership; the independence and performance of Boards and Directors and Audit committees; compliance with laws, codes, rules and standards, as well as the internal controls that are in place in these companies.

Nkonki’s track record in Integrated Reporting Awards stretches back to 2011 with the launch of the Top 40 JSE Listed company’s Integrated Reporting Inaugural Awards that were launched in July 2011 (based on the Reports for the 2010 financial year). To enhance the firm’s research capacity in looking into this year’s awards, Nkonki utilised the services of a research team at Monash South Africa (MSA), a campus of Monash University in Australia.

Integrated Reporting is the new approach to corporate reporting that demonstrates the integration of an organisation’s strategy, governance and financial performance and the social, environmental and economic context within which it operates. By reinforcing these connections, Integrated Reporting helps businesses to take more sustainable decisions and enable investors and other stakeholders to understand how an organisation is really performing. Nkonki Inc. therefore congratulates Eskom on its performance, as well as the other SOCs that have achieved the minimum reporting standards.

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