Integrated reporting is a process that results in a periodic report by an organization about value creation and related aspects over time. It is generally a concise communication about the organization’s strategies, governance, performance and prospects in the context of its external environment.
The whole idea of integrated reporting is the improvement in the quality of information available and to have a more efficient allocation of capital. It is also used to promote a more cohesive and efficient approach to corporate reporting that brings to light different reporting strands; and communicates all the factors that materially affect the ability of an organization to create value over time. Lastly, it enhances accountability and stewardship for the broad base capitals (financial, manufactured, intellectual, human, social and relationship and natural) and promotes understanding of their interdependencies.
Compared to the traditional standalone financial and sustainability reports that are published, integrated reports offer a concise and holistic view of how the company manages risk and develops new business opportunities. Ultimately it provides the stakeholders with a complete picture of the company’s overall performance. The idea of integrated reporting is taking off and spreading over to companies on a global scale.