BDO's integrated thinking and reporting journey guide
21 January 2019
Stakeholders including customers, employees, investors and regulators are increasingly expecting organisations to demonstrate value creation and better risk minimization activities beyond what is available in traditional financial reports. These heightened expectations are supported by research and market evidence arguing that organisations which incorporate Sustainability metrics also known as Environmental, Social and Governance (ESG) into annual financial disclosures are able to realise additional benefits. These benefits include potentially lower insurance premiums and cost of capital due to a better risk management profile as well as tangibly demonstrating ESG issue management increasingly required in tenders and IPOs.
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 based in the international Integrated Reporting Framework. 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 longer-term future. The integration of material financial and ESG information is allowing more informed decision making and development of smarter KPIs and KRIs.
BDO’s journey guide “DRIVING VALUE CREATION THROUGH INTEGRATED THINKING AND REPORTING” provides reporters with an introduction to better integrated decision making and provides a simple step-by-step guide towards more meaningful integration of ESG information into traditional organisational disclosures including annual reports and strategic reports.