Integrated Reporting is an innovative framework that merges financial capital with non-financial capitals—such as intellectual, human, and natural resources—into a unified, coherent story.
It goes beyond traditional balance sheets to illustrate how an organization creates or diminishes value over time. This approach links long-term sustainability to financial outcomes, providing a comprehensive view of corporate health that meets the rigorous demands of today's institutional investors and global stakeholders.
A: The primary shift lies in the integration of "Capitals." While Sustainability or ESG reports often function as standalone disclosures focusing on a company's impact on the environment and society, Integrated Reporting (IR) explains how those impacts affect the company's own ability to create value. IR connects non-financial "capitals" (Natural, Human, Social, Intellectual) directly to financial performance, moving from isolated data points to a holistic strategic narrative.