10.3 Case studies of successful integrated reporting

Integrated reporting combines financial and non-financial information to provide a comprehensive view of a company's performance and value creation. Successful implementation requires a clear strategy, strong governance, and robust data management processes. Companies like Novo Nordisk and Unilever have effectively adopted this approach.

Key elements for effective integrated reporting include stakeholder engagement, integrated thinking, and leadership commitment. Best practices involve materiality assessments, connectivity between different aspects of the business, and ongoing improvement. These practices can lead to better decision-making, risk management, and stakeholder relationships.

Integrated reporting in practice

Successful implementation examples

Top images from around the web for Successful implementation examples

• 

  Firm characteristics and excellence in integrated reporting View original

  Is this image relevant?

• 

  OER sustainability framework View original

  Is this image relevant?

• 

  Ser sostenible ya no es una opción - ecointeligencia View original

  Is this image relevant?

• 

  Firm characteristics and excellence in integrated reporting View original

  Is this image relevant?

• 

  OER sustainability framework View original

  Is this image relevant?

1 of 3

Top images from around the web for Successful implementation examples

• 

  Firm characteristics and excellence in integrated reporting View original

  Is this image relevant?

• 

  OER sustainability framework View original

  Is this image relevant?

• 

  Ser sostenible ya no es una opción - ecointeligencia View original

  Is this image relevant?

• 

  Firm characteristics and excellence in integrated reporting View original

  Is this image relevant?

• 

  OER sustainability framework View original

  Is this image relevant?

1 of 3

• Integrated reporting is a holistic approach to corporate reporting that combines financial and non-financial information to provide a comprehensive view of a company's performance and value creation
• Companies that have successfully implemented integrated reporting include:
  • Novo Nordisk (healthcare company)
  • Sasol (integrated chemicals and energy company)
  • Natura (cosmetics company)
  • Unilever (consumer goods company)
• Effective integrated reporting requires:
  • A clear strategy
  • Strong governance
  • Robust data collection and management processes
• Successful integrated reports are:
  • Concise
  • Material
  • Connected, providing a coherent narrative of how a company creates value over time

Key elements for effective implementation

• Stakeholder engagement is crucial for:
  • Identifying material issues
  • Ensuring the relevance and credibility of integrated reports
• Integrated thinking, which considers the interconnectedness of financial, social, and environmental factors, should be embedded throughout the organization
• A strong tone from the top, with leadership commitment to integrated reporting, is essential for:
  • Driving change
  • Ensuring the quality of reports
• Continuous improvement and innovation in reporting practices are necessary to keep pace with:
  • Evolving stakeholder expectations
  • Regulatory requirements

Best practices for integrated reporting

Stakeholder engagement and materiality

• Stakeholder engagement helps identify material issues and ensures the relevance and credibility of integrated reports
• Material issues are those that significantly affect a company's ability to create value over the short, medium, and long term
• Materiality assessments should consider:
  • Financial impacts
  • Environmental and social impacts
  • Stakeholder perspectives
• Ongoing stakeholder dialogue helps to refine and validate material issues over time

Integrated thinking and connectivity

• Integrated thinking considers the interconnectedness of financial, social, and environmental factors in decision-making and value creation
• Integrated thinking should be embedded throughout the organization, from strategy development to day-to-day operations
• Connectivity in integrated reports demonstrates the links between:
  • Strategy
  • Governance
  • Performance
  • Prospects
• Connected information helps stakeholders understand how a company creates value and manages risks and opportunities

Impact of integrated reporting

Internal benefits for companies

• Integrated reporting can lead to improved:
  • Decision-making
  • Risk management
  • Resource allocation within companies
• The process of preparing an integrated report promotes:
  • Cross-functional collaboration
  • Holistic thinking
  • Long-term perspective
• Integrated reporting can help break down silos and align the organization around a common purpose and strategy

External benefits for stakeholders

• Companies that practice integrated reporting often experience:
  • Increased investor confidence
  • Better access to capital
• Integrated reporting can enhance stakeholder trust and relationships by demonstrating:
  • Transparency
  • Accountability
• Studies have shown that companies with high-quality integrated reports tend to have:
  • Better financial performance
  • Lower cost of capital over the long term
• Integrated reporting can also lead to improved reputation and brand value

Framework for integrated reporting

Alignment with company purpose and strategy

• An integrated reporting framework should align with the company's:
  • Purpose
  • Values
  • Strategy
• The framework should also consider:
  • Industry standards
  • Regulatory requirements
• Alignment ensures that the integrated report is relevant and meaningful to the company and its stakeholders

Defining scope and boundaries

• The framework should define the scope and boundaries of the report, including:
  • Material issues to be addressed
  • Stakeholders to be engaged
• The scope should be broad enough to capture all significant impacts and dependencies, but focused enough to be manageable and relevant
• Boundaries may extend beyond the company itself to include:
  • Supply chain
  • Customers
  • Communities

Measuring and monitoring performance

• Key performance indicators (KPIs) and targets should be established to measure and monitor progress towards:
  • Strategic objectives
  • Value creation
• KPIs should be:
  • Relevant
  • Reliable
  • Comparable
  • Consistent over time
• Targets should be:
  • Specific
  • Measurable
  • Achievable
  • Time-bound
• Regular performance monitoring and reporting helps to track progress and identify areas for improvement

Governance and assurance

• The framework should outline the governance structures, processes, and controls in place to ensure the reliability and integrity of reported information
• Governance mechanisms may include:
  • Board oversight
  • Executive responsibility
  • Internal audit
  • External assurance
• Assurance by an independent third party can enhance the credibility and reliability of the integrated report