A new research study ‘Realizing the Benefits: The Impact of Integrated Reporting’ demonstrates that organisations are realizing benefits of pursuing better reporting. As organisations work together differently and use new information to assess their performance there have been important breakthroughs in organisations’ understanding and articulation of how they create and destroy value – 92% say it has improved understanding.

As the understanding of value creation changes, decision making changes - 79% report improvements. These are largely attributed to changes in management information, particularly information provided to boards, with many noting that the most important benefit they experienced was a change in conversations between the board and management – 78% see more collaborative thinking about goals and targets by the board, executives and strategy departments.

The Black Sun research, conducted in partnership with the International Integrated Reporting Council (IIRC), highlights the significant positive impact of Integrated Reporting on those businesses who have taken a lead on making their corporate reporting and thinking fit for purpose. In fact, there is even stronger evidence of change and benefits for organisations that have published at least one integrated report.

Other important developments in integrated thinking and benefits:

• 84% see a current benefit regarding data quality
• 65% see a current benefit of better long term decision making
• 68% see a better understanding of the business risks and opportunities

The study was conducted with participants of the three year IIRC Pilot Programme – a network of 140 influential businesses such as HSBC and Marks & Spencers, and investors from 26 countries that have helped the IIRC develop and test the International Integrated Reporting Framework, building on earlier research from 2012.

Sallie Pilot, Director of Research & Strategy at Black Sun commented “I’m delighted to see that the journey to better reporting is having significant impact on changing mind-sets, information sources and decision making processes. This leads to improved internal and external engagement and ultimately better business decisions.”

The research will be launched at the IIRC Pilot Programme Conference in Madrid. The Conference, held in partnership with PwC, will bring together investor relations, reporting and other business professionals from global businesses to explore the way to more relevant, innovative and meaningful corporate reporting. 

Click here to access ‘Realizing the Benefits: The Impact of Integrated Reporting’.