The discussion offered valuable insight into what happens once a report reaches the investment desk – which sections investors prioritise, what information they rely on most, and where reporting can make their job easier or more difficult.
One theme emerged consistently throughout the conversation. Investors are not short of information. What is often lacking is clarity, structure and reporting that clearly signposts what truly matters for decision-making.
Operating in a world of ever-increasing disclosure and information overload, the challenge is no longer the volume of data available, but its usefulness. Investors need reporting that helps them quickly understand a company’s strategy, risks and governance, and that enables them to track progress over time.
Everyone agreed that the annual report remains a critical tool in this process. However, as reporting requirements expand, how information is structured, prioritised and communicated has become just as important as the information itself.
We have set out some of our key takeaways from the discussion below.
Annual reports remain an important tool for understanding a company’s business model, strategy, and value creation. Active portfolio managers may read 35–40 reports across their portfolio, making clarity, efficiency, and navigability essential. Reports must work for multiple audiences, from portfolio managers to ESG specialists, data aggregators, pension fund clients, and end beneficiaries.
Despite the breadth of disclosures, investors consistently focus on a few key sections. Leadership statements (particularly when clearly authored by the Chair and CEO), risk disclosures, and remuneration reports are closely read to understand priorities, tone from the top, strategic direction, and management incentives. Audit reports remain valued for credibility, although some investors feel they are becoming overly detailed and could benefit from clearer prioritisation.
Investors are looking for signals of change. They want to understand how risks, opportunities, and commitments have evolved over time. Tracking disclosures over three or four years allows investors to see when issues first emerged and how management has responded. This longitudinal view is critical for ESG and sustainability, allowing investors to see how non-financial factors are integrated into strategy and capital allocation.
With ever-growing disclosure requirements, more information does not improve decision-making. Investors favour reports that distil key points, avoid duplication, surface material information early, and focus on outcomes rather than narrative. Concise summaries enable quick assessment of the company’s strategic priorities.
Materiality remains one of the most challenging aspects of corporate reporting, particularly for diversified companies where material issues differ across divisions. Investors want transparency on why issues are material, how they connect to strategy, and how companies are preparing for future scenarios. The central question: is the company fit for the future, or just meeting short-term expectations?
Governance is a top investor priority. Annual reports are used to evaluate board composition, leadership priorities, culture, and stewardship responsiveness. Board skills matrices are increasingly assessed for capabilities relevant to emerging challenges, such as AI and technological disruption.
Generative AI tools are starting to transform how investors engage with disclosures. Early applications include summarising complex information, extracting structured data, supporting stewardship scoring, and monitoring management responses. AI can reduce analysis and meeting prep time by up to 50%. However, investors emphasised that these tools remain experimental and still require significant human oversight, particularly for high-conviction investment decisions.
Investors rarely read reports sequentially; they dip in and out to find specific information. Similarly when they go to a companies corporate website it is not to browse, it is to find the date they need. This makes digital structure and clear signposting critical. Best practices include strong IR webpages, clear navigation, interactive links, and separate access to structured datasets. Large static documents are increasingly less effective.
The annual report is an opportunity to communicate the investment case. Investors want clear answers on: what the company does, how it creates value, key risks and opportunities, strategy evolution, and long-term delivery.
Ongoing dialogue with companies is crucial to building trust. While the annual report is a key tool to tell the right story and communicate how you create value, investors also really value sitting down and talking to the leadership about the business model or senior management about specific areas of the business. Authenticity and human engagement remain essential to build trust and support investment decisions.
Despite the growing complexity of corporate reporting, the core expectations from investors remain relatively simple.
They want reporting that is:
And in answer to our original question – yes investors definitely do read your annual report but not from cover to cover or all in one go!
If you want to make your reporting or wider communications more investor friendly why not get in touch to arrange a meeting with one of our reporting experts – get in touch at bcrosbie-dawson@blacksun-global.com
Black Sun Global is a stakeholder advisory and engagement agency that's been driving transformation and positive change for ambitious brands for more than 20 years. With deep expertise in disclosure and reporting, ESG, sustainability, and digital engagement, we reshape how organisations connect with customers, investors, employees, and the wider world.
We are trusted partners to some of the most influential global organisations, sparking innovation and sustainable performance through our strategic insights, partnerships, and proprietary technologies.
As founders of the Positive Change Group, we are on a mission to create a new kind of stakeholder relations partner. Our world-class specialists work closely with executive leadership teams to protect reputations, inspire trust, and promote responsible business practices - building resilience and long-term value in a rapidly changing world.
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