The concept of integrated reporting (IR) has been gaining ground. Promoted by the International Integrated Reporting Council (IIRC), IR attempts to address weaknesses in traditional financial reporting and help business develop resilient operations for the medium and long term.
Rather than focusing solely on their use of financial capital, companies applying the IIRC’s International IR Framework also report on other forms of capital – manufactured, intellectual, human, social and relationship, and natural. The approach recognises that companies’ success depends on many factors, including the expertise of their people, the intellectual property they develop through research and development, and their interaction with the environment and societies in which they operate.
Since the release of the framework in December 2013, IR adoption has steadily increased. From 2018, the IIRC intends IR to enter a ‘global adoption phase’ and take up a position at the centre of corporate governance and reporting. Almost 2,000 entities already participate in IR networks worldwide, while the IIRC’s IR Business Network – its flagship programme for organisations committed to adopting the framework – now has over 80 members.