Fundamental concepts

The framework defines integrated reporting as “a principle-based reporting system that communicates information about how an organisation’s strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term.” There are six categories of capital that the organisation interacts with: financial, manufactured, intellectual, human, social and relationship, and natural. The framework does not require organisations to follow this categorization.

Guiding principles

Seven principles guide the preparation and presentation of the integrated report. This includes emphasis on report on strategic focus plans, the connectivity of information, stakeholder relationships, management of materiality, conciseness, reliability and completeness, and consistency and comparability.

Content elements

The report identifies eight content elements, aligned with the Guiding Principles, that are fundamentally linked to each other:

• Organisational overview and external environment
• Governance
• Business model
• Risks and Opportunities
• Strategy and Resource allocation
• Performance
• Outlook
• Basis of preparation and presentation

Reporting on these elements gives stakeholders a holistic view of an organisation to help influence their decisions.

General reporting guidance

Disclosure of material matters is discussed in this section. The report emphasizes that the integrated report should provide all material matters in a balanced fashion without material error. Furthermore, disclosures about the capitals reflect the effects it has on the organisation’s ability to create value over the short, medium, and long term.

The integrated report

An integrated report is a single report providing a balanced update to an organisation’s stakeholders about sustainable value creation over the long term. The report provides insight into the economic, environmental, social, and governance performance of the organisation and the linkages between each of these areas. The report is useful for all organisations regardless of size and sector.

Conclusion and recommendations

This is a valuable tool that can help organisations to provide cohesive reports for their stakeholders. Investors and other stakeholders are increasingly demanding greater transparency and integrated reporting, highlighting the key issues underpinning their decision-making. The guidance provided can help organisations demonstrate their stewardship on sustainability and sustainable value creation.