In the last few months, several publications have exhorted regulatory authorities to craft policy interventions that would incentivize a long-term analytical orientation of companies’ disclosures and within investment research content.

Clearly, a lot of firepower is being expended on enhancing ESG reporting. Nevertheless, as conveyed by the JICPA report and a forthcoming CFA Institute member survey report on the usefulness of key performance indicators, investors depend on much more than ESG information when deciphering companies’ value creation story. Herein, the effective adoption of the IIRC’s integrated reporting (IR) framework—with its emphasis on connecting business model, strategy, and all material capitals deployed by a business while conveying the value creation across multiple time horizons—can significantly contribute to enhancing the overall quality and insight of corporate reporting information, including long-term information. This is especially the case as the IR framework goes beyond financial and ESG information and includes intellectual capital information.

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