With most companies wrapping up their financial year-end to start a new financial year, Alwyn Pretorius, General Manager at Infinitus Reporting Solutions – creators of Finnivo™ speaks on the importance of integrated reporting and how business performance cannot be measured solely by financial results.
Imagine a company report as a story. In the past, that story might have focused only on the numbers—the revenue, profits and expenses. But integrated reporting paints a fuller picture, weaving together the financial narrative with details about how the company impacts the planet, its workforce and society.
This is because business performance cannot be measured solely by financial results. As stakeholders demand more transparency and accountability, companies are increasingly adopting integrated reporting to provide a clearer, more comprehensive view of their performance.
“At its core, integrated reporting is not about integrating multiple systems or technical processes,” says Pretorius. “It’s about combining different types of information into one cohesive report to show the full picture of a company’s value creation over time.”
Integrated reporting reflects the growing understanding that a company’s performance cannot be measured by financial results alone. It takes into account how a company manages its environmental and social risks, as well as its governance practices (ESG). This multi-dimensional approach helps investors, stakeholders, and the public assess a company’s long-term sustainability and its broader societal contributions.
Why Is Integrated Reporting Important?
Investors today are increasingly interested in more than just financial returns. They seek transparency on how companies handle ESG risks, governance issues, and long-term planning. By offering a clearer picture of a company’s performance across these areas, integrated reporting helps build trust and credibility with investors and stakeholders. Companies that adopt integrated reporting are also more likely to attract investors with an interest in sustainability, ethical practices, and long-term resilience.
While the benefits are clear, creating an integrated report may seem daunting for many businesses. It requires gathering data from multiple departments, including carbon footprint, employee welfare, social impact, and governance. These diverse areas often have separate reporting processes, making it challenging to present a unified narrative.
However, technology has made this process easier. Reporting tools like Finnivo™ allow businesses to streamline data collection and consolidate financial and non-financial metrics into a single report. This not only saves time but ensures consistency, offering a clearer, more accurate view of a company’s overall performance.
Pretorius notes, “With the right data in place, it takes just one individual to generate and publish a report that reflects a company’s performance—financial, sustainability, social, and governance.” Finnivo’s platform simplifies this process by enabling different teams to contribute while ensuring that the final report aligns with integrated reporting standards.
The Future of Integrated Reporting in South Africa
For South African businesses, where economic conditions can be unpredictable, integrated reporting offers an opportunity to demonstrate resilience and long-term strategy. As global expectations for ESG transparency rise, companies that embrace integrated reporting will be better positioned to thrive in an increasingly competitive market.
While JSE-listed companies are required to submit integrated reports on a comply-or-explain basis, many non-listed companies are also recognising the value of presenting a fuller, clearer picture of their performance. Integrated reporting has become a valuable tool for showing long-term value to investors, customers, and other stakeholders.
Read more about ESG HERE
Main Image: Copel ENG
