|Lead KPI: Number of integrated reports published annually||2019||2018|
|WBCSD member companies that produce self-declared integrated reports (158 sampled in 2018)2||20%||18%|
|WBCSD member companies whose report is titled “Integrated” (158 sampled in 2018)3||14%||11%|
|JAPAN – KPMG Survey of Integrated Reports in Japan4||414||341|
|UK - Deloitte survey of UK premium-listed FTSE companies – those clearly considering the <IR> notion of “capitals” in their business models5||38%||35%|
| AUSTRALIA – KPMG’s survey of ASX 200 corporate reporting – companies using at least some of the principles of
The available third party research shown above indicates continued growth in adoption of integrated reporting globally, with particularly strong momentum in Australia and Japan - in the latter companies issuing self-declared integrated reports now account for 58% of the total market capitalization.
Spotlight on key markets
|2019 key market & objective||2019 performance/progress|
|USA - Use the New York Council meeting
week in November to make a highly visible impact in the U.S. market.
|China - Guidelines on integrated reporting published or a public commitment to do so by Chinese Ministry of Finance.||
|Germany - Develop and mobilize a new strategy to grow adoption in German market||
|ASEAN (Association of Southeast Asian Nations) - Build on existing momentum in ASEAN market to achieve a ‘step-change’ in adoption, including through launch of ASEAN IR committee and reporting awards.||
|Website traffic (unique views):|
|<IR> Framework page||46k||41k||12%|
|<IR> Examples Database||18k||19k||-5%|
|Newsletter average open rate (post GDPR)9||1,320 43%||1,029 40%||291 3%|
9GDPR regulations came into effect May 2018 which meant we had to reduce our mailing list significantly.
- Our website achieved growth in traffic of 3%. The 12% increase in views of the <IR> Framework webpage specifically indicates continued growth in its use, echoing the adoption statistics above. The slight drop off in traffic to the <IR> Examples Database reflects a longer term trend, it is down 21% since 2015, which points to the need to promote this resource more effectively in our communications as we believe it is a valuable resource to preparers.
|Weighted scores out of 5 from IIRC Stakeholder survey10||2019||2018|
|To what extent do you agree that integrated reporting promotes a more connected and efficient approach to corporate reporting?||4.4||4.2|
- While the respondents of our stakeholder survey are naturally likely to be positive about integrated reporting, the increase in this score is positive and shows the continued relevance of integrated reporting, and its support by our stakeholders, even with the growing number of corporate reporting initiatives. This is also supported by the increase in respondents to our stakeholder survey of 64% to 403.
- The 2019 stakeholder survey does show that there remains an opportunity to enhance our communications – while only 8% rated the effectiveness of our communications as ‘ineffective’, the majority, 62%, rated it ‘somewhat effective’, with 30% rating it ‘effective’. We are developing our ‘business case’ for integrated reporting in order to boost the clarity of our communications in 2020.
- In 2019 we launched two major implementation tools as part of the two-year programme of guidance and other technical assistance to further clarify, simplify and amplify the adoption of integrated reporting, on the back of our <IR> Implementation Review in 2017:
– A set of responses to the most ‘frequently asked questions’ on integrated reporting
– A practice aid to help organizations navigate the International <IR> Framework requirements that must be applied before an integrated report can be said to be in accordance with the <IR> Framework.
- We also implemented enhancements to the <IR> Examples Database responding to market calls for simpler database navigation and a smaller, more manageable set of examples.
- Progress against actions arising from the <IR> Implementation Review were presented in the IIRC’s 2018-2019 Technical Programme: Progress Report, published in January 2020.
The publication provided updates on over 40 action items and marked an important transition from activities focused on guidance development, research proposals and ongoing dialogue to a modernization of the <IR> Framework in 2020.
- Read about our report on integrated thinking under theme three.
- While the quantity of integrated reports continues to grow, the available research suggests we are not necessarily seeing an increase in quality. Deloitte Norway’s study of the largest 50 companies in Norway noted that there was little improvement to the previous year11. KPMG’s survey of integrated reports in Japan (as referenced above), noted plenty of areas for improvement, though it should be noted that previous research from 2017 found positive association between integrated report quality and liquidity and expected future cash flows12.
- ACCA’s analysis of <IR> Business Network participants reports found “while some aspects of reports have improved, others have slipped.”13
- Bob Eccles et al, found that the quality of integrated reporting has not significantly improved since their last studies (published 2015). However, they did note “all companies surveyed from South Africa, the Netherlands, and Germany produced excellent integrated reports…most of the reports published by French and Italian companies were very good and showed improvement compared to prior years, while the United Kingdom had pockets of excellence in integrated reporting.” This would indicate that regional factors are the cause for the poor quality of some reports rather than inherent difficulties.14