Five key takeaways from the ISSB’s Integrated Thinking & Reporting Conference

The International Sustainability Standards Board (ISSB) hosted the IFRS Integrated Thinking & Reporting Conference in Frankfurt in June 2023.

The theme of the event was ‘connecting strategy to impact through integrated thinking and reporting’.

The event saw industry practitioners, market participants and academics sharing their insights and best practices on integrated thinking and reporting. The five key takeaways from the conference are summarised below.

Integrated thinking and reporting improves engagement and discourse between investors and investees

Integrated thinking and reporting improves the visibility of the drivers of long-term value creation and better explains their implications. It focuses on conversations between investors and investees; with more precise information helping investors to make better investment decisions.

Integrated thinking and reporting is integral to the IFRS Foundation’s development of a comprehensive global corporate reporting system

Integrated thinking and reporting enhances the way organisations think about, plan and report on business performance, and provide insights into their future prospects through a multi-capital and value-creation lens.

So far, more than 2,500 businesses in over 70 countries have adopted integrated reporting. The International Accounting Standards Board (IASB) and the ISSB are still in the process of developing a comprehensive global corporate reporting system and are committed to using the principles and concepts of the Integrated Reporting Framework to achieve this. Meanwhile, the Chairs of the IASB and the ISSB encourage entities to continue using the Integrated Reporting Framework for their integrated reporting.

Integrated thinking and reporting improves performance

Another key takeaway is that integrated thinking and reporting helps organisations look at their business through a more connected, multi-capital lens, and this helps to improve performance. Integrated thinking and reporting enables organisations to explain their value creation more transparently. In addition, the ‘multi-capital’ approach and extending disclosure beyond the short-term can improve financial performance via a lower cost of capital.

Integrated thinking and reporting can be a natural link between investor-focused and impact-focused sustainability reporting

Integrated thinking underpins the Integrated Financial Reporting Framework. The Integrated Financial Reporting Framework is ideally placed to help the IFRS Foundation and the Global Reporting Initiative (GRI) achieve their goal of developing a comprehensive corporate reporting system that addresses the information needs of capital markets (financial results and performance) as well as other stakeholders (sustainability). Integrated thinking and reporting is also essential to connecting traditional audiences from the accounting profession, CFOs and boards with other stakeholders interested in impact reporting.

Integrated thinking and reporting complements the ISSB Standards

Integrated thinking and reporting is important to investors. When companies do not follow the integrated reporting process, investors must make their own assumptions, which could lead them to incorrect conclusions.

Integrated reporting and the ISSB Standards are interconnected because entities need the Integrated Reporting Framework to tell their story. Still, so that investors believe it, they also need the metrics and standards of the ISSB.

Our national sustainability team can help you understand how integrated thinking and reporting could be relevant for your organisation. Contact us today.