Integrated reporting is an evolution of corporate reporting, with a focus on conciseness, strategic relevance and future orientation. As well as improving the quality of information contained in the final report, integrated reporting makes the reporting process itself more productive, resulting in tangible benefits. Integrated reporting requires and brings about integrated thinking, enabling a better understanding of the factors that materially affect an organization’s ability to create value over time. It can lead to behavioural changes and improvement in performance throughout an organization.
As set out in the Integrated Reporting Framework, an integrated report is a concise communication about how an organization's strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term. The Framework enables a business to bring these elements together through the concept of 'connectivity of information', to best tell an organization’s value creation story.
Integrated reporting has been created for any organization that wants to embrace integrated thinking and progress their corporate reporting. Businesses have reported breakthroughs in understanding value creation, greater collaboration within their teams, more informed decision making and positive impacts on investor and stakeholder relations. For organizations interested in practical advice about the journey towards integrated reporting, networks have been established to share experiences and learning.
Integrated reporting is the central strand of a global movement towards establishing a more inclusive economic system and a sustainable capital markets system, facilitated and encouraged by a more effective corporate reporting system. The progress towards global adoption of integrated reporting has seen milestones achieved by many organizations.
At the heart of integrated reporting is our integrated model, which demonstrates how six capitals - financial, manufactured, human, social & relationship, intellectual and natural - represent all the resources and relationships organizations utilize to create value. An integrated report looks at how the activities and capabilities of an organization transforms these six capitals into outcomes.
The Integrated Reporting Framework has been developed to explain the fundamental concepts that underpin the integrated reporting movement, alongside guiding principles and practical content elements for the report.