PwC’s Annual Review of Corporate Reporting in the FTSE 350 2018/19
82% of companies
make some disclosure on stakeholder engagement – a huge increase from 26% last year
65% of companies
have changed their KPIs over the last two years
37% of companies
explicitly address their strategic plans for the coming year
The arrival of new reporting and assurance regulations and ongoing advances in technology are driving changes in how companies communicate with their shareholders and other stakeholders via their annual reports. Increasingly, they’re focused on building trust and positive relationships with employees, customers and suppliers. The information provided must also be coherent, consistent and complementary to other communications.
This report will help you better understand what other organisations are doing and what is required as you plan your next annual report, in particular regarding new reporting requirements for 2019.
“The approach to corporate reporting needs to be one which is proactive and positive – with accountability at its heart – and this includes the annual report. So tell your story, and tell it well.”
How a company communicates in its annual report reflects how committed it is to transparency and accountability to its stakeholders, as well as to regulatory compliance. In uncertain times, it’s vital such communication effectively builds trust and sustains positive relationships.
Our latest review of FTSE 350 annual reports shows companies are paying attention to ‘the stakeholder agenda’. It also identifies what companies should do to more clearly demonstrate their commitment to stakeholder engagement in the future.
Many companies still need to create strategic narratives that identify what is important to them.
Companies need to do more to discuss the disruption they face and how they are responding.
New reporting requirements mean companies must do more to demonstrate how they’re taking stakeholders and other long-term considerations into account in their decision making.
Head of Corporate Reporting, PwC United Kingdom