As a result of COVID-19 and a push from both regulators and investors for enhanced disclosures on climate and other non-financial risks, most of Australia’s largest listed companies and many large scale non-listed organisations adopted integrated reporting principles when drafting their 2020 annual reports.
Organisations have of course provided detail on the financial impact of the pandemic on their revenues, cost base, asset valuations and funding, but the focus of their discussion has been on the actions taken to protect all the fundamental value drivers of the business for short term business continuity and survival, while adapting their business models and strategic priorities, as required, to support medium to longer term recovery and growth.
KPMG’s seventh annual survey of corporate reporting trends in Australia, covering reports to 30 June 2020, includes interviews with investment managers and asset owners that are using broader business information, including Environmental, Social and Governance (ESG) data, to inform their investment philosophy, strategy and decisions. These investors provide thought-provoking insights for boards and executives of corporates and financial institutions to consider when assessing the importance of broader business disclosures, with an immediate focus on quality ESG strategy and data.
We encourage organisations to continue to improve the quality of their reporting and move towards adopting the principles of integrated reporting to provide more meaningful corporate reporting on the business and its ability to create sustainable value now and into the future for investors and other important stakeholders.