Integrated Reporting Brings Business Benefits

Two studies released today show integrated reporting’s positive impacts on business engagement with external stakeholders, strategic benefits including better decision-making, and the importance of integrated reporting in helping to meet the needs of investors.

The International Integrated Reporting Council research, conducted in partnership with corporate communications firm Black Sun, found 91 percent of all respondents have seen a positive impact on external engagement with stakeholders, including investors. Of those that have published at least one integrated report, 87 percent of businesses believe investors better understand their strategy.

Additionally, 79 percent of respondents reported improvements in decision-making, 68 percent reported a better understanding of risks and opportunities, and 78 percent saw better collaborative thinking by the board about goals and targets.

The study was conducted with participants of the three-year IIRC Pilot Programme, a network of 140 businesses and investors from 26 countries that have helped the IIRC develop and test the International IR Framework, published in December.

Another study released today by PwC shows that nearly two-thirds of investment professionals (63 percent) who responded believe that the quality of a company’s reporting — including information about strategy, risks and other drivers of value — could have a direct impact on its cost of capital.