Blog: Integrated Reporting
Integrated reporting tracks a company’s or organisation’s performance across a range of contributing factors on which they depend for their success. This includes a company’s resources, IP, people and infrastructure, and the company’s impacts and contributions to society and the environment.
Last year, a survey undertaken by consulting firm KPMG found that 79 per cent of all ASX200 companies have adopted an integrated reporting approach.
The move towards integrated reporting has been accelerated by the COVID-19 pandemic, and a push from regulators and investors for enhanced disclosures on climate and other non-financial risks.
Integrated reporting requires companies to adopt higher levels of transparency and accountability, which some companies may find uncomfortable or perceive as high risk.
However, if done well, this style of reporting builds credibility and trust, and helps to grow a company’s reputation to attract investment, business partners, the right talent and skills, and community support.
It’s also not just about how the value created by a company is reported. It can actually change the way a company operates by breaking down silos and bringing employees together to encourage integrated thinking.
Many of our clients are realising the benefits of adopting an integrated reporting approach.
These benefits also extend to how information and key achievements can be presented and communicated to make them easier to understand. For example, using graphics and infographics within the report, company presentations and social and digital media.
This gives an Annual Report much more meaning and relevance to all the company’s stakeholders, not just the shareholders and investment analysts, and helps create a much deeper level of understanding and engagement.
So, if you’re company whose value goes well beyond the financials, committed to meaningful action and building your reputation, then it may be time to consider integrated reporting.