Islamic Reporting Initiative

The IRI was created in response to research that identified low rates of sustainability and CSR reporting despite a prevalence of sustainability and CSR practice in organizations where Islamic principles and values are an important element of corporate culture. Such findings indicate that existing sustainability reporting standards, such as the Global Reporting Initiative (GRI) and ISO Standards, among others, are not always as practical or relevant in a local and cultural context.

The IRI is a culturally-responsive reporting framework based on Islamic principles and values and the embedded widespread practice of philanthropy. Such values shape organizational cultures and ground CSR as an economic and moral initiative, founded on the understanding that an organization aspires to be a ‘good corporate citizen’. The framework will be compatible with elements specific to the culture, such as Zakat and other organizational codes of conduct. At the same time, the IRI framework will be compatible with Sharia compliant finance, one of the fastest growing types of finance:[4] between 2009 and 2013 Islamic banking assets grew at an annual rate of 17.6%, and are expected to grow annually by an average of 19.7% until 2018.[5]

In March 2017, the IRI was recognized by the Cambridge IF Analytica Global Islamic Finance Report (GIFR) as one of the leading initiatives in Islamic Finance in 2017.[6]

The IRI deems the need for CSR reporting to be culturally-responsive in order to maximize the nuances that lend themselves to the overall ambition of CSR and to maximize stakeholder engagement. With CSR reports primarily used by stakeholders, it is important that the motivations for CSR practice are framed within the local context and use a language that is familiar, meaningful and relatable to culture.[7] Once such a framework "fits into its place", it creates stable, flourishing and interconnected economic, social and cultural environments.

The IRI enables CSR and sustainability metrics to be incorporated into wider business practice through the integrated nature of the framework. CSR and sustainability reporting is a concept encouraging businesses and institutions to report on their social and environmental performance.[8] The combination of non-financial and financial metrics provides an additional layer of information important to stakeholders and investors in the measurement and management of risk.[9]

The IRI was founded by Daan Elffers, CEO of EMG Group, as part of the advisory firm's own CSR program. EMG Group's advisory board is chaired by H.H. Prince Pieter-Christiaan of Orange-Nassau, van Vollenhoven[10] and other members include prominent financier Gerrit Heyns[11] and the former Danish Minister of Environment, Ida Auken MP.[12]

The IRI Advisory Council includes H.E. Hakima El Haïté Delegate Minister in charge of the Environment of Morocco; Host of the UN Climate Change COP22 in Marrakech, H.E. Dr Taher Shakhshir, Minister of Environment, The Hashemite Kingdom of Jordan,[13] Thoraya Al Awadhi, Founder and CEO of the Thoraya Al Awadhi Group of Companies and President of the Rotary Club of Dubai,[14] and Dr. Yacoub Nasereddin, Chairman of the Board of Trustees of the Middle East University in Jordan and Founder and Chairman of the Board of Directors of YAN Group.[15]

The foundation for the IRI "Stichting IRI Reporting Standard" was founded on 15 December 2015.[16] The Trustees/board members of the foundation for the IRI are its founder Drs Daan Elffers; entrepreneur, thought leader and philanthropist Mohamed Amersi; the award-winning entrepreneur Ms Amal Daraghmeh-Masri; sustainability thought leader Gerrit Heyns; and senior academic Dr Abdel-Aziz Sharabati.[17]

On 17 February 2017, IRI Trustee Ms Amal Daraghmeh Masri of Palestine was appointed Knight (Chevalier) of the French National Order of Merit (Ordre national du Mérite).[18]

The IRI collaborates with a global network of governmental, corporate and not- for-profit organizations across the Islamic world, referred to as members. The IRI has members from over 50 countries, and include DQS Certification and Auditing (Germany),[19] the Social Stock Exchange (London, United Kingdom),[20] the International Medical Centre (IMC, Saudi Arabia),[21] and Glowork (Saudi Arabia).[22] The IRI has more than 20 media partners, including Middle East Business News and Magazine (Palestine)[23] and Business Islamica (United Arab Emirates).[24] The Middle East University in Jordan is one of the first members of the initiative.[25]

As the framework develops, the IRI global network of users will, in disclosing their CSR and sustainability data, be actively engaged in advancing the IRI framework in line with international best practice.

On 7 December 2015, the IRI was commended by the Organisation of Islamic Cooperation (OIC) for its work towards making business in the Islamic world more sustainable and prosperous:

"The OIC commends the IRI in its efforts in promoting economic, social and environmental prosperity in a manner that is not only impact-oriented and sustainable but culturally-relevant and responsive."[26]

In July 2016, the IRI was commended by Sir Mark Moody-Stuart, Chairman of the United Nations Global Compact Foundation:

"Open public reporting is essential if business is to build and maintain societal trust. It is a key part of the commitment to the principles of the UN Global Compact. So I commend the ambitions of the Islamic Reporting Initiative; by seeking to emphasize and build on our shared values for human and environmental prosperity, the IRI will accelerate progression towards the objectives outlined in the UN Sustainable Development Goals by leveraging business potential."[27]

• Sustainability reporting
• Sustainability accounting
• Triple bottom line
• Integrated reporting
• Organisation of Islamic Cooperation (OIC)