Integrated Reporting
AdvancedIntegrated reporting is an approach to corporate reporting that explains how a company creates value over time by combining financial information with information about its strategy, governance, environment, social impact and other resources in a single, connected report.
Traditional annual reports focus heavily on financial results. Integrated reporting aims to show the bigger picture: how a company uses and affects different types of capital, such as financial, manufactured, intellectual, human, social and natural capital, to create value for itself and others.
The approach was developed by the International Integrated Reporting Council, whose framework became part of the IFRS Foundation in 2022, alongside the International Sustainability Standards Board.
For example, an integrated report for a mining company might connect its financial performance with information about its workforce skills, relationships with local communities, environmental impacts and how these affect its long-term strategy and risks.
Integrated reporting is required for listed companies in South Africa, on an apply-or-explain basis, and is used voluntarily by many companies elsewhere. Supporters argue it gives investors a fuller understanding of long-term value. Critics note that it can be complex to prepare and that its quality varies.
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