TRADITIONAL INVESTOR RELATIONS MATERIALS PROVIDE STAKEHOLDERS WITH VALUABLE FINANCIAL INFORMATION, BUT DO NOT INCORPORATE IMPORTANT NON-FINANCIAL FACTORS.
Integrated reporting allows your company to display information regarding its strategy, performance, and governance in regards to its external environment; therefore, changing the way investors, and the general public view your company.
Investors have become increasingly aware of a company’s non-financial risks and opportunities. A 2013 Investor Exchange event observed that two-thirds of participants take these factors into consideration when evaluating a company. By accounting for these factors, your company will improve relationships with stakeholders.
Develop Innovative Thinking
Integrated reporting not only changes how your company creates value, but also how they think. Rather than using annual reports to focus solely on the previous year’s achievements, companies should be forward-thinking. Clorox formulated a strategy demonstrating how sustainability created value for their company. By illustrating this connection between financial and non-financial data, Clorox created a “holistic picture of the company’s total performance.”
This innovative form of reporting creates value for both investors and the company itself. Businesses who currently use integrated reporting have noted improved communication between departments (strategy, investor relations, finance, etc.). Approximately 93% of companies who pioneered this form of reporting believe it helps remove communication barriers between departments.
At Watermark, we are committed to creating high-quality annual reports that utilize integrated reporting. For more information, make sure to read "The Importance of a Well-Designed Annual Report."