I attended Ernst & Young’s workshop at the Roda Al Bustan Hotel, Al Garhoud in Dubai last week on Integrated Reporting, an Executive Briefing. It was extremely informative and worthwhile. The primary goal for me was to increase my understanding of Integrated Thinking and Integrated Reporting (ESG) for long term value creation by companies for its investors. The idea behind it is that if you are focusing on more risks you are more likely to outperform your peers in the long run.
Integrated reporting is more than merging financial and non-financial reporting information – it’s about disclosing value. It helps focus both financial and non-financial capital, which impact an organization’s strategy and business model.
Integrated Reporting is a concept to more clearly communicate an organization’s value creation story. Central to the approach is that value is increasingly shaped by intangible assets and externalities (resource availability/dependence, brand reputation, human rights in supply chain, community inclusiveness, etc.).
In this context, worth highlighting that EY’s recently launched its fourth Investor Survey, which presents insights into the views of 260 institutional investors globally, on environmental, social, governance (ESG) or non-financial reporting. The Investor Survey shows that investor appetite is growing for more integrated, predictable and strategic ESG disclosures. This year, 97% of respondents surveyed said they conduct an evaluation of target companies’ non-financial disclosures, that frequently impacts investment decisions (up from 48% in 2015). In particular, Integrated Reports were considered either very useful (88%) or essential (6%) sources of information to inform investment decisions.
I highly recommend EY’s training program to any corporate looking to raise capital from investors. Integrated Thinking and Reporting is the way forward to address investors’ Integrated Questioning, and the earlier a company can start thinking along these lines the better for long term value creation for its investors. Have shared the materials with my corporate clients, encouraging the Boards to sign up to this workshop!
For more information and to arrange a workshop for your Board: Gus Schellekens, Partner MENA Climate Change and Sustainability Services MENA, Abu Dhabi
AlphaBet Capital Advisors 