This Point of view highlights how companies may benefit from integrated reporting in response to stakeholders’ calls for enhanced disclosure of environmental, social, governance and other nonfinancial information. It also outlines the benefits some companies are realizing as they explore integrated reporting.
Integrated reporting seeks to provide stakeholders with additional information to help them make more informed assessments of companies and their long-term prospects. The International Integrated Reporting Council is developing an integrated reporting framework to guide companies in communicating the information expected by stakeholders. Companies that use the integrated reporting concepts may produce more transparent reporting and could also improve their access to capital.
Adding integrated reporting to the agenda of management and board strategy sessions may help companies meet the evolving expectations of stakeholders. The integrated reporting concepts may provide companies a useful framework when considering how to best disclose environmental, social, governance and other matters that they have decided to report. Companies may also achieve strategic business benefits from integrated thinking.