Integrated reporting aims to provide a detailed picture of a company’s ability to produce value over time for different stakeholders.
The International Integrated Reporting Council – which describes itself as a global coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs – is seeking to raise awareness and encourage companies to include non-financial information in their regular reports.
The IIRC aims to improve the quality of information available to investors to enable a more efficient and productive allocation of capital. It aims to ensure that there is more communication of risk factors which could affect a company’s value over time. It aims to enhance accountability and promote good stewardship.
integrated reporting in the news
In June 2012 an FT report considered the logic behind the movement for integrated reporting. It quoted a business guru as arguing that what gets measured gets managed and said the model for campaigners was the Johannesburg exchange which had required integrated reporting since 2010. Companies listed on that exchange have to provide environmental and social data alongside their financial results.