Integrated reporting

Integrated reporting (IR, or in International Integrated Reporting Council publications) in corporate communication is a "process that results in communication, most visibly a periodic “integrated report”, about value creation over time. An integrated report is a concise communication about how an organization's strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term." It means the integrated representation of a company's performance in terms of both financial and other value relevant information. Integrated Reporting provides greater context for performance data, clarifies how valuable relevant information fits into operations or a business, and may help make company decision making more long-term. While the communications that result from IR will be of benefit to a range of stakeholders, they are principally aimed at providers of financial capital allocation decisions. IR helps to complete financial and sustainability reports. A framework has been published, but some questions remain in order to know how to apply it. Do we need one report ? Will this report be useful for investors, and for other stakeholders? Other questions could have been raised, such as who is really working for an integrated reporting, and who has interests in it.…

Integrated reporting (IR, or in International Integrated Reporting Council publications) in corporate communication is a "process that results in communication, most visibly a periodic “integrated report”, about value creation over time. An integrated report is a concise communication about how an organization's strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term." It means the integrated representation of a company's performance in terms of both financial and other value relevant information. Integrated Reporting provides greater context for performance data, clarifies how valuable relevant information fits into operations or a business, and may help make company decision making more long-term. While the communications that result from IR will be of benefit to a range of stakeholders, they are principally aimed at providers of financial capital allocation decisions. IR helps to complete financial and sustainability reports. A framework has been published, but some questions remain in order to know how to apply it. Do we need one report ? Will this report be useful for investors, and for other stakeholders? Other questions could have been raised, such as who is really working for an integrated reporting, and who has interests in it. In June 2021, the International Integrated Reporting Council and the Sustainability Accounting Standards Board announced their combination to form the Value Reporting Foundation (VRF). In November 2021, the IFRS Foundation announced it would consolidate the VRF and Climate Disclosure Standards Board with its own newly formed International Sustainability Standards Board by June 2022¹.

Timeline

National integrated reporting practices

Netherlands

The Dutch accountancy body, NBA (Koninklijke Nederlandse Beroepsorganisatie van Accountants) announced in 2015 that it would be collaborating with the IIRC "to increase the momentum towards integrated reporting by raising awareness in markets across the world".

South Africa

Corporate reporting on financial and non-financial information in a single document has grown as companies such as BlackSun have produced research which suggests that producing integrated reports will have a strong correlation to the resilience and ability of a business to create value in the short, medium and long term. For many years businesses have been producing both Annual Reports and separate sustainability reports. However, increasingly often businesses are starting to produce integrated reports. On 1 March 2010 the Johannesburg Stock Exchange (JSE) adopted the King III principles as part of its listing requirements, which require listed companies to apply King III or explain which recommendations have not been applied and publicly provide reasons therefore. King III recommends Integrated Reporting and hence the requirements for listed companies to issue integrated reports. In the King III Report (otherwise known as King Code of Governance for South Africa 2009), Integrated Reporting is referred to in this manner: "A key challenge for leadership is to make sustainability issues mainstream. Strategy, risk, performance and sustainability have become inseparable; hence the phrase ‘integrated reporting’ which is used throughout this Report."

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