If you’re involved in Annual Reporting, you know the demands of a complex, evolving regulatory landscape. Yet, even the most informed readers rarely engage with an entire report—raising the question: how can we expect broader stakeholder engagement?
As regulatory demands grow, is the Annual Report just a compliance burden—or can it still be a powerful tool for strategic communication and trust?
To find out, we analysed all 100 FTSE 100 reports, identifying how companies are responding and offering a model that provides clarity, candour, and creativity.
Our model assesses disclosures against 6 Principles of Trust:
Value-focused & material - reports should clearly show the value created by their activities across multiple factors
Stakeholder-driven - reports should be accountable to stakeholders' needs
Future-oriented - reports should help readers understand the direction for the future
Strategically aligned - reports should show how decisions are made and who makes these decisions
Purposeful - reports should show the organisation's purpose
Balanced, transparent, credible - reports should be honest about challenges as well as success
FTSE 100 companies are focusing more on value creation and stakeholder outcomes, but gaps remain.
Only half clearly present an explicit and compelling investment case, showing how some companies miss a chance to connect with investors.
While many align strategy with metrics, over a third omit key targets, limiting accountability.
Despite its centrality to business strategy, only a quarter provided a visual capital allocation model to explain simply their allocation framework.
Even with CSRD delays, firms are integrating ESG into strategy, risk, and executive pay—and half now link ESG metrics to remuneration.
of companies specifically set out their investment case
of companies provide a visual capital allocation model
of companies provide no targets for their strategy
Stakeholders want to understand where your business is headed, how it’s responding to global shifts, and whether it's prepared for the future.
Nearly all FTSE 100 companies now discuss market outlooks, up from 40% in 2019. The CEO's focus on future conditions is growing in response to regulatory and market demands.
Only 25% of CEOs or Chairs link sustainability to business performance — a figure unchanged in five years — weakening the business case for ESG.
While many experiment with AI, only 10% integrate it into business models, and few explain its strategic role — limiting transparency and trust.
Just 3 companies list AI expertise on their boards, and only 10 include AI as a board agenda item — suggesting a need for better oversight disclosure.
of companies mention AI in their board skills matrix
of companies had a feature on AI in their Annual Report
of CEOs talk about the business case for sustainability in their leadership statements
Stakeholders expect a clear link between purpose, strategy, and outcomes — not just words, but proof of impact.
Nearly all FTSE 100 companies state their purpose, connecting it to long-term value and societal role.
Purpose should align with strategy, behaviours, and measurable outcomes — not just high-level statements.
87% highlight values; 60% connect them to behaviours, showing how purpose shapes company culture in practice.
firms set out values but only 6/10 identified supporting behaviours
of companies explicitly link purpose to their strategy, up from 43% in 2019
of companies specifically mention outcomes in relation to promotion of culture
Annual reports should tell a unified story — showing how strategy connects across performance, risk, sustainability, and governance.
Many FTSE 100 reports fail to link key areas like KPIs, risk, and remuneration back to strategy.
Only a third clearly connect pay to strategy, despite rising stakeholder scrutiny.
41% include it as a strategic pillar, but some lack a supporting plan. Still, 70% tie sustainability to bonuses and 60% to long-term incentives.
80% now disclose net zero plans (up from 20% in 2021); most also reference upcoming reporting standards.
of companies explicitly addressed the connection between strategy and remuneration. 49% discuss links between risk and strategy.
of reports explicitly identified strategy as a skill in Board biographies
of reports included Net Zero transition plans
Trust and engagement are now central to reporting, especially under Section 172.
Only half of companies link stakeholder engagement to decision-making or outcomes.
While 60% include sustainability targets (up from 20%), many still struggle to connect them to long-term value.
71% cite culture as a board priority, yet only 41% report culture-related KPIs. DEI reporting is common (68%), though sometimes light on outcomes.
To build trust, reports must move from boilerplate to clear, tailored, and outcome-focused narratives across all stakeholder groups.
of Chair Leadership Statements mention sustainability.
set out KPIs or metrics to measure culture
of reports disclosed DEI initiatives in their strategic report. Only 20% clearly explained how diversity supports strategy.
Stakeholders expect honest reporting — highlighting not just successes, but also challenges and risks.
Most disclose overall risk appetite, but only a third do so for individual risks, limiting insight into risk management.
Nearly half now refer to board performance reviews, but only just over half report progress on past actions.
While 90% disclose malus and clawback rules, few explain their timeframes, reducing effectiveness.
40% mention preparation; 10% have identified weaknesses. U.S.-linked firms often report to higher internal control standards.
CEOs discussed major challenges in their leadership statements
of reports included both positive and negative trends their market review
mention preparing for reporting against provision 29
Connect with Black Sun Global to get a full copy of our Complete 100 2025 – Trust in Transition transform report, and to transform your corporate reporting into a powerful tool for building deeper, more impactful stakeholder relationships.
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