Framework for integrated reporting It is a challenge to advance reporting practice from disparate CR and sustainability related information to a point where this information is not only integrated into but integral to external reporting. To help with our analysis we have identified a number of content areas within an Annual Report where the information is of practical and relevant use to report users. These content areas should not be treated individually but must be integrated into each element of the report, linking strategy and objectives, remuneration and corporate governance with risk, opportunities and performance to demonstrate how non-financial – environmental, social and governance – information connects to business value in the short, medium and long-term. Setting the scene? Business description The report should offer the reader an overview of the business activities and performance and should demonstrate a clear understanding of the relevance of the material issues which have, or potentially could have, an impact on the business. Wider stakeholder commitment? Overall vision By referencing wider stakeholder groups as opposed to simply shareholders, the company is able to reconcile its business purpose of creating value for shareholders whilst also taking into account its relationship with other stakeholder groups. Communicating from the top? Leadership commitment If there is a commitment to sustainability, the business case for operating in a responsible way should be clearly articulated at a strategic level and communicated through the management statements. Integral to the business model? Strategy & objectives Sustainability is undisputed as an essential component of every successful business strategy. It is important for companies to demonstrate that sustainability is an important business issue and they need to demonstrate they are managing it in the same way as other business issues; with a strategic response to material issues connected to objectives and action plans. 4 Integrated thinking in reporting
