Global perspectives

Arvind Agrawal

Founder and CEO, AICL Communications


Integrated reporting has emerged as the most effective tool for corporates globally to communicate value to stakeholders. Since laying the foundation of holistic reporting with the <IR> Framework a decade back, the IIRC has been at the forefront of ushering in transformative changes in the way businesses and their stakeholders perceive ‘value’. As a trusted partner for furthering the adoption of the <IR> Framework in India, we revisit the mutually beneficial association, and together look forward to shaping corporate reporting strategy in the years to the come.

The changing times have victimized many a tradition, and traditional financial reporting is no exception. With an unprecedented global crisis accelerating the pace of change towards a more responsible way of conducting business, companies in the Indian subcontinent have started realizing the benefits of embedding integrated thinking into their reporting. Being the largest economy in the region with a mature capital market system, India is playing a crucial role in leading the way forward in this direction.

Today, nearly half of India's Nifty50 companies have already adopted integrated reporting, with several using the <IR> Framework for three or more years and maturing to adhere to all the content elements and guiding principles in letter and spirit. What’s heartening to see is that while large companies were expected to voluntarily adopt the framework following the market regulator’s recommendation, organizations with a market cap of USD 100 million+ have adopted integrated reporting as their primary reporting tool. It is a clear validation of the value that integrated reporting brings.

Further, with environmental, social and governance (ESG) considerations gaining traction in the way businesses and investors perceive risks in their strategic and investment decisions, integrated reporting has emerged as a preferred choice for several Indian companies to disclose ESG performance. As Indian corporates continue to raise the bar in transparent and impactful stakeholder communications, the adoption of integrated reporting is likely to accelerate further. Evolving investor expectations, together with supportive regulations, are furthering the case for better and holistic reporting, and the role integrated reporting plays in this regard is monumental.

I would like to congratulate the IIRC for their efforts in delivering the Integrating Reporting Framework, and striving to create a common baseline for communicating value-creation. While a lot has been done in the past decade, I believe this journey has many more milestones ahead.

I extend by best wishes to the entire IIRC team for all their future endeavours and look forward to further deepening our association.