University Finance Report: VicSuper Integrated Information Review

This report provides a review of the VicSuper Integrated Report for 2019, analyzing its key information and disclosures in relation to the legitimacy theory. The report examines VicSuper's investment strategies, including sustainable investments and ESG integration, and their impact on stakeholder value. It highlights the company's financial fitness program and corporate responsibility initiatives. The discussion evaluates the company's disclosure practices, focusing on how they align with the legitimacy theory's principles of transparency and accountability. The report concludes that VicSuper's integrated reporting approach is relevant for stakeholders and provides material information in line with the legitimacy theory.

Running head: REVIEW OF INTEGRATED INFORMATION
REVIEW OF INTEGRATED INFORMATION
Name of the Student
Name of the University
Author note

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REVIEW OF INTEGRATED INFORMATION
Executive Summary
The objective of the report is to assist the Corporate Reporting Manager for deciding on the
future plan and strategy. The report aims to review the VicSuper’s Integrated Report for the year
2019 to evaluate the information and disclosures and to analyze whether it is in line with the
legitimacy theory.

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REVIEW OF INTEGRATED INFORMATION
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Key points of integrated information...........................................................................................3
Review of Disclosure practice as per legitimacy theory.............................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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REVIEW OF INTEGRATED INFORMATION
Introduction
This report aims to review the integrated information based on the legitimacy theory
contained in the VicSuper Integrated report. VicSuper’s adopts reporting as per the International
Integrated Reporting Framework. The organization believes that Integrated Reporting will
provide a better understanding of how the fund is affected due to the existing problems. It also
assists in explaining the creation of sustainable benefits to the stakeholders.
Discussion
The discussion includes the main integrated information and review on the information
based on legitimacy theory
Key points of integrated information
1. Their Investment strategies continue to boost fund’s investment competency and
implementation of data interconnectivity, sustainable investments and improved portfolio
management. In the year 2019, they have made few appointments to expand their
investment team in terms of skills and experience. This includes an appointment of a
committed portfolio manager to manage and look after Responsible Investment.
(Vicsuper.com.au 2020)
2. The company has designed a program called “Financial Fitness Program” to help
employees to gain a better understanding of their finances, enhancing financial literacy,
and enable them to take control (Vicsuper.com.au 2020). This Program will be conducted
online for four-week, and it can be incorporated into the existing employer’s wellbeing
strategy.

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3. ESG integration of the organization is the exact and explicit insertion of governance,
environmental, and social factors or problems in the analysis of investment and decision
making (Scholtens et al. 2016). It includes investment managers' selection and
monitoring processes. That is why the company introduced Sustainable Development
Goals to act as a way to monitor the manager (Adams, C.A., 2017). Vicsuper integrates
the ESG factors into investment processes so that the long-term value of retirement
savings of the company’s members’ can be protected.
4. At the beginning of the current year (2019), the company sets an ambitious target of
investing $3 billion as a contribution to sustainable outcomes by the middle of the year
2020. The company reported that at financial year-end, they achieved their target of
investing $3billion, which lead to reduction of the carbon intensity and meet their
definition of “investments in sustainable outcomes1”. The investments encompassed
more than 12% of entire funds under management and estimated to have delivered
positive impacts.
5. Its corporate responsibility methodology focuses on – (i) providing support to the
communities in which the company operates, including the non-profit sector, government
departments on the social issues that affect communities, and also by the charity (Lueg et
al. 2016). (ii) transparency and accountability to values and ethics, by reflecting what
they are and the manner in which they conduct business. (iii) being responsible employer,
who is focused on the wellbeing of their employees, and works for providing them with a
functional and flexible workplace (iv) understanding the impact of business on the
environment and putting efforts in reducing the impact of waste and energy.

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6. Several changes were applied to existing investment options: (a) risk objectives were
changed for the investment options - “Capital Secure” and “Capital Stable” (b) changes
in objectives for investment return with respect to Term Deposit, Capital Secure
investment options, and Cash.
Review of Disclosure practice as per legitimacy theory
There must be a balance in the integrated report of an organization between disclosures
and need to lessen complexity, but any material information should not be removed and must be
disclosed. In the Integrated Report, disclosures are made concerning the company's outlook, after
considering the legal and regulatory requirements which the organization must comply with
(Velte and Stawinoga 2017). The theory of legitimacy recommends that the primary purpose of
the Integrated Report is to legitimize the activities of the entity (Lai, Melloni and Stacchezzini
2016). The IR of Vicsuper provides information on the social, environmental performance, and
governance of the company, as discussed above. But similarly, it must disclose information on
the value creation for the company’s every stakeholder. It must disclose all non-financial aspects
along with the financial aspects. The company has made disclosures for its stakeholders –
 Regarding the utilization of capital to create products and for delivering services
 Regarding the details of capital that are being used for both internal purpose and the
external environment.
 The way in which outcomes of the whole process will benefit the stakeholders and will
assist in achieving sustainable development goals in the long run
This is a way to communicate with their stakeholders, and with all the users of the financial
report, it provides them with the vision and mission and accomplishment and their strategy.

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Conclusion
Therefore it is to conclude that the Vicsuper prepares the Integrated Report and discloses
all the material information which legitimizes and is relevant for stakeholders. The report reflects
all the material information to conduct a review on the IR of VicSuper.

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References
Adams, C.A., 2017. The Sustainable Development Goals, integrated thinking and the integrated
report. Integrated Reporting (IR), pp.1-52.
Lai, A., Melloni, G. and Stacchezzini, R., 2016. Corporate sustainable development: is
‘integrated reporting’a legitimation strategy?. Business Strategy and the Environment, 25(3),
pp.165-177.
Lueg, K., Lueg, R., Andersen, K. and Dancianu, V., 2016. Integrated reporting with CSR
practices. Corporate Communications: An International Journal.
Scholtens, B., Plantinga, A. and Duuren, E., 2016. ESG Integration and the Investment
Management Process: Fundamental Investing Reinvented.
Velte, P. and Stawinoga, M., 2017. Integrated reporting: The current state of empirical research,
limitations and future research implications. Journal of Management Control, 28(3), pp.275-320.
Vicsuper.com.au, 2020. Profit To Member Super Fund. [online] Vicsuper.com.au. Available at:
<https://www.vicsuper.com.au/> [Accessed 2 April 2020].