Integrated and Sustainbility Reporting

WHAT IS AN INTEGRATED REPORT?

We can define an “Integrated Report” like a bridge between the Consolidated Financial Statement and the Sustainability Report, in which the concept of Value Creation has an increasing importance, as the integration in the report of the related results underlines. Referring to the definition of the International Integrated Reporting Committee (IIRC), “the Integrated Reporting is a process founded on integrated thinking that  results in a periodic integrated report by an organization about value creation over time and related communications regarding aspects of value creation. An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term”.

The purpose of this new approach is to increase the transparency towards all community and stakeholders, through one single report, which contains at the same time financial, environmental, social and governance results.

The IR aims to:

  • Improve the quality of information available to providers of financial capital to enable a more efficient and productive allocation of capital;
  • Promote a more cohesive and efficient approach to corporate reporting that underlines the link between economic and financial strands and those factors which influence the value creation;
  • Enhance accountability and stewardship for the broad base of capitals (financial, manufactured, intellectual, human, social, relationship and natural) and promote understanding of their interdependencies;
  • Support integrated thinking, decision-making and actions that focus on the creation of value over the short, medium and long term.

Using the Integrated Report is not add more information to the traditional report, but it is a way to connect all economic, social, ethic and environmental elements, overtaking the traditional report and creating a better report. So the organization achieves a more efficient communication of its identity, role and value to all the stakeholders.

The IR has a combined emphasis on conciseness, strategic focus and future orientation, the connectivity of information, the capitals and their interdependencies: this must become the integrated thinking within the whole organization. The integrated reporting will provide the impetus for greater innovation in corporate reporting globally.

WHO REALISE IR?

Here you can find some examples of Integrated Reports:

WHAT IS A SUSTAINABILITY REPORT?

The Guidelines of GRI (Global Reporting Initiative) define the Sustainability Report as a “report published by a company or organization about the economic, environmental and social impacts caused by its everyday activities. A sustainability report also presents the organization’s values and governance model, and demonstrates the link between its strategy and its commitment to a sustainable global economy”. There is an increasing number of companies and organizations that need to set goals, measure performance, and integrate a sustainability strategy into their core planning.

The sustainability report aims to give transparency to all the sustainable activities and communicate it to all stakeholders. So it should represent the environmental, social and financial performances in a balanced and fair way, considering the negative and positive impacts caused to the society.

As a result of the credibility, consistency and comparability it offers, GRI’s Framework has become a de facto standard in sustainability reporting.

Which are the benefits of the Sustainability Reporting?

For example:

  • Benchmarking and assessing sustainability performance with respect to laws, norms, codes, performance standards, and voluntary initiatives;
  • Demonstrating how the organization influences, and is influenced by, expectations about sustainable development;
  • Comparing performance internally and externally, and between organizations and sectors.

 

 

WHO REALISE SUSTAINABILITY REPORTING?

Here there are some examples of Sustainability Report: