Abstract
From 2010, South African companies listed on the Johannesburg Stock Exchange Limited have been required to prepare and present the Integrated Report (IR). Given the increasing relevance of integrated reporting in the South African context, in which the preparation of the IR is compulsory for many companies, this chapter examines the experience of Eskom, a South African electricity supply company. The aim is to analyse the IR of the company during the period 2011–2012 in light of the content elements and guiding principles presented in the Consultation Draft published by the International Integrated Reporting Council. Therefore, this chapter sheds light on the applicability and/or adaptability of international recommendations on IR within a public company in the electric power industry.
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Notes
- 1.
The 2011–2012 Integrated Report of Eskom analysed in this chapter is publicly available on the company website: http://financialresults.co.za/2012/eskom_ar2012/integrated-report/index.php
- 2.
Ranked among the top twenty utilities in the world by generation capacity, Eskom generates enough electricity to provide 95 % of the electricity requirements in South Africa and 45 % of the overall electricity consumption in Africa. Eskom sells electricity directly to approximately 138,000 business customers and supplies electricity to 4.7 million residential customers, equal to 40 % of all residential customers (including prepaid customers) in the country. http://www.eskom.co.za/c/article/223/company-information/
- 3.
- 4.
- 5.
By 2018, Eskom’s Capital Expansion Program aims to increase electricity demand and diversify Eskom’s energy sources. Through the exploitation of new power plants, Eskom is planning to increase its generation capacity by 17,120 MW and its transmission lines by 4,700 km. See http://www.eskom.co.za/c/article/223/company-information/
- 6.
- 7.
Because of the public nature of the company, Eskom’s IR speaks to a wide range of stakeholders, which include employees and unions; the government and parliament; lenders, analysts and investors; customers and regulators; industry experts, academics and the media; business groups, civil society and non-governmental organizations (NGOs); and suppliers and contractors (Eskom 2012, pp. 10).
- 8.
In 2010 the South African Government released the Framework of the New Economic Growth Path with the aim of enhancing growth, employment creation and equity (http://www.info.gov.za/aboutgovt/programmes/new-growth-path/).
Eskom contributes to this by supplying reliable, sustainable and cost effective energy to fuel South Africa’s power-intensive core industries (Eskom 2012, pp. 54,)
- 9.
The Public Finance Management Act (PFMA) is one of the most relevant legislations in South Africa and encourages good financial management to maximize service delivery, efficiently and effectively exploit the limited resources employed. http://www.treasury.gov.za/legislation/PFMA/
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Granà, F., Ceccacci, F. (2013). The Case of Eskom. In: Busco, C., Frigo, M., Riccaboni, A., Quattrone, P. (eds) Integrated Reporting. Springer, Cham. https://doi.org/10.1007/978-3-319-02168-3_18
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DOI: https://doi.org/10.1007/978-3-319-02168-3_18
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