The Value in Nonfinancial Reporting

“After several years of growing evidence of the impact of commerce on climate change, scandals tied to poor corporate governance and a new appreciation for the social impact of business, institutional investors are increasingly likely to use nonfinancial performance information as an essential component in investment decision-making.” – The Global Climate Change and Sustainability Services Investor Survey

The key areas people look for in annual reports that are nonfinancial, are governance, supply chain, human rights and climate change. These areas aren’t just viewed as a nice, added extras they are integral to the investment decision process that all stake holders need to be aware of, whether they are investors, consumers or innocent by standers they care about how your company functions in society and what kind of impact it is having on a global scale.

In 2018 only 3% of respondents in the global climate change and sustainability services investor survey, say they conduct little or no review of nonfinancial disclosures when researching companies to put their money into, compared to 22% in 2017 and 48% in 2015.

These statistics highlight just how much the world has changed in the last 4 years. With scandal after scandal clouding the financial sector world-wide, global campaigns for equality, the me-too movement and environmental disasters becoming more and more frequent, people have had enough of the status quo. Consumers love nothing more than seeing business big and small making active efforts to make a positive impact on the world while paying attention to issues affecting us all.

Non-financial information helps to provide a better understanding of risks, opportunities and public image from an investment standpoint. Certainly, don’t over share, it is your company’s prerogative to decide what’s a good company fact or story and what’s either boring or an over share, however highlighting the individual efforts of all company employees from the top to the bottom, what they are like and what they are trying to achieve helps builds trust, cement an image of authenticity and encourages growth.

What’s great about this kind of information is that there are many ways you can present it to your audience. This is a chance be as creative as possible, be entertaining and bold, use video, infographics, podcasts, whatever medium you chose you there is so much more you can do to highlight company efforts in terms of shining a light on corporate social responsibility, that is so much more than text on paper.

If you are looking to add a personality to your next annual report call Fresco Creative on (02) 8116 9033 and let’s see what we can do.