KPMG Survey of Integrated Reports in Japan, 2019

This is the annual survey of integrated reports in Japan by KPMG, their sixth report since first issued in 2014.

In their survey, KPMG state that over 500 companies in Japan now publish an integrated report – including 175 out of the Nikkei 225 companies.

KPMG’s key recommendations for companies looking to produce their annual report as an integrated report, is first to make sure they communicate their value creation story, and show and explain the links between the information that shapes it.  The second key recommendation is to convey non-financial information with material financial impacts.  The third recommendation is to share the underlying story across all mediums –  companies must share a consistent story that is tailored to the medium and the audience they are addressing.

Other key notes and trends from the report are:

• 35% of companies explain materiality in terms of the sustainability of their business models
• 22% of companies explain risks and opportunities in connection with its materiality assessment
• 26% of companies report non-financial quantitative targets
• 48% of companies explain the impact of their current performance on their short, medium and long-term strategic targets
• 20% of companies include outlook, and how their outlook is related to their materiality assessment