<IR> is a process that results in communication, most visibly a periodic “integrated report”, about value creation over time. An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term. An integrated report should be prepared in accordance with the International <IR> Framework.
While the communications that result from <IR> will be of benefit to a range of stakeholders, they are principally aimed at providers of financial capital allocation decisions.
<IR> aims to catalyse a more cohesive and efficient approach to corporate reporting that draws together other reporting strands and communicates the full range of factors that materially affect the ability of an organization to create value over time. Its objective is to inform resource allocation by providers of financial capital that supports long term, as well as short and medium term, value creation. It promotes integrated thinking, decision-making and actions that focus on the creation of value in the long term, as well as short and medium term. <IR> enhances accountability and stewardship with respect to the broad base of capitals (financial, manufactured, human, intellectual, natural, and social and relationship) and promote understanding of the interdependencies between them.
<IR> builds on developments in financial and other reporting to catalyse an evolution in corporate reporting. An integrated report communicates the factors most important to the creation of value over time. Organizations will provide additional detailed disclosures, such as financial statements and sustainability reports, for compliance purposes and to satisfy particular information needs, including those of stakeholders other than providers of financial capital. These other disclosures may be linked to or referenced in the organization’s integrated report.