Integrated Reporting: What’s your value creation story?

A 2018 <IR> benchmarking analysis

Communicating value through <IR>

In our most recent benchmarking analysis of Bursa Malaysia Top 50 companies, we are delighted to see greater awareness and improvements in the quality of annual reports being published.

These include:

  • Providing insight on Corporate Governance activities beyond boilerplate terms of reference
    • There is now greater clarity over the outcome of the organisation’s governance process. We see a 30% increase in companies discussing the actual activities undertaken by the Board and its committees
  • Disclosure of principal risks affecting the business
    • There’s a 67% increase in companies disclosing principal risk(s) from management’s perspective and mitigating actions. An added insight would be to relate these risks back to the company’s strategy
  • Inclusion of strategic priorities, enhancing the credibility of vision/ mission statements
    • We see an 18% increase in companies adding disclosures of their strategic priorities in achieving its ultimate vision
  • Embedding sustainability into the overall business strategy
    • There’s a 26% increase in companies discussing some linkage of their sustainability goals to their overall business strategy 

We hope to see these metrics improve:

  • Linking the organisation’s business model to its value creation activities
    • The business model should elaborate the value that the company creates for its stakeholders
  • Disclosure of KPIs and linking these to the organisation’s strategic priorities
    • Clarity over how the company measures the success of its actions in achieving its strategies
  • Discussing market trends and linking these to the discussion of strategic choices
    • In addition to discussing how market trends affect the business, the company should also discuss how these trends affect its strategic choices, such as key markets and customer segments it operates in 

Read the report to get the full detail.

Contact us

Pauline Ho

Pauline Ho

Chief Strategic Operations Officer, PwC Malaysia

Tel: +(60) 3 2173 0946

Tay Choon Ling

Tay Choon Ling

Assurance Executive Director, PwC Malaysia

Tel: +60 (3) 2173 0558

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