Driving value creation through integrated thinking and reporting: A Guide - With Mervyn King
08 January 2019
Stakeholders including clients, employees and regulators are increasingly expecting organisations to demonstrate value creation beyond traditional financial metrics and outputs. These expecations are supported by an increasing amount research and market evidence arguing that organisations which incorporate Environmental, Social and Governance (ESG) data and narratives into annual financial disclosures are able to realise additional benefits. Some of the benefits identified include increased employee engagement, heightened trust of stakeholder community partners and better investor visibility of future prospects and governance (For more detailed benefits see page 7).
Explaining how financial and non-financial performance factors are connected as well as measuring the impact they have on strategy, resource allocation and stakeholder communities is gaining momentum across the world. Greater integrated thinking and decision making taking into account a wider array of issues, risks and opportunities is resulting in the creation of an integrated report.Integrated Reporting (<IR>) supports organisations in telling a more meaningful story about how they define, create and maintain/increase/decrease value for themselves and key stakeholders now and in the short, medium and longerterm future. The integration of material financial and ESG information is allowing more informed decision making and development of smarter KPIs and KRIs.
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