International Integrated Reporting Council brings together over 200 pieces of academic research into the wide-ranging benefits of more effective non-financial corporate reporting
The past few years has seen reams of reports published detailing how effective environmental social and governance (ESG) strategies and reporting tends to correlate with a strong commercial performance from companies. Now the International Integrated Reporting Council (IIRC) has made it easier to navigate this fast-expanding academic canon with the launch today of a new academic database bringing together over 200 studies that highlight both the ramifications of adopting integrated reporting techniques and emerging best practices.
The free database includes a wide range of studies and papers exploring how integrated reporting that brings together financial and non-financial metrics, including environmental and social data, leads to increased stock liquidity, better performance, higher market valuation and a longer-term investor base for the businesses that adopt it.
The IIRC said academic studies into the benefits of integrated reporting are drawing on a significant and growing evidence base. Over 1,600 companies in 65 countries are using integrated reporting approaches that seek to highlight a wider range of corporate risks and opportunities and explain how all of their resources are creating value. It is helping businesses to think holistically about their strategy and to manage keys risks.
Speaking at the launch of the database at the American Accounting Association Annual Meeting in Washington DC, the IIRC's CEO Richard Howitt will say the business case for integrated reporting is more compelling than ever.
"What we have seen since the framework for integrated reporting was introduced to the world five years ago is nothing short that extraordinary," he said. "The evidence is there - in this database - that corroborates what I have always believed, integrated reporting can help instil financial stability and sustainable development in our markets.
"I urge any business leader not yet on the road to integrated reporting, or any investor that isn't routinely using integrated reports to support their capital allocation decisions, to visit this database. With over 200 pieces of research, businesses can no longer ignore the need to communicate a holistic story of value creation to their stakeholders. Integrated reporting is not just the right thing to do for the sake of our markets, society and environment - it is the right thing to do for your business."
The launch comes as businesses face growing pressure to engage with ESG issues and broaden their reporting models beyond financial metrics.
For example, earlier this year Larry Fink, the boss of Blackrock, the world's largest asset manager, warned businesses that they could not rely on the company's support if they failed to adequately explain their social purpose.
And just this week, environmental law firm ClientEarth wrote to regulator the Financial Conduct Authority (FCA) urging it to take action against insurers who fail to adequately disclose the climate risks they face.
