FTSE 350 corporate reporting trends in 2017
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28% of companies
make reference to strategic timelines
30% of companies
explain the reason for risk movement
42% of companies
link KPIs to strategy
40% of FTSE 100 companies
provide some insight into their differentiating factors
The annual report remains an important source of information for investors. In their May 2017 Long Term Reporting Guidance the Investment Association stated that “A company’s annual report is an important source of information for investors, and the primary means of communication to the market”. Evidence from this year's research confirms that the quality of a company’s annual report is indicative of the quality of reporting across other channels. We have always seen the ability to produce a good annual report as a sign of good reporting discipline within a company generally, and our research bears that out.
Our review focused on 4 key areas of the strategic report:
Business is under unprecedented scrutiny and are operating in a new age of accountability. But there is little sign of this revolution in annual reports. Companies will need to make a step-change in their reporting if they are to keep up with and respond to changing demands of stakeholder. We believe now is the time to really shake things up.
Only between 40 and 50% of corporates and investors believe annual reports show that stakeholders are taken into account in decision-making and appropriately engaged with.
“We applaud those companies taking risks and innovating in their annual reports but our findings show that even in the areas that have improved there is still a lot of work to do. After 15 years of our Building Public Trust Awards we really do have to ask whether the progress we see across the FTSE 350 is enough.”