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Integrated thinking and reporting in Italy in relation to the ESG world

Over the years organisations that benefit from the use of integrated reporting have had a key means of improving corporate communication. According to the International Integrated Reporting Council (IIRC), integrated reporting helps SMEs to better understand and communicate how they create value. This framework identifies six corporate capitals, including financial productive, intellectual, human, social and relational, as well as natural capital. When properly cultivated, these can add value over time.

Understanding how the company creates value, and communicating that value to the outside world is paramount. Companies should focus on improving risk management, decision-making, and on strengthening communication with stakeholders. Integrated thinking provides an in-depth knowledge of the business, defines the strengths of the business model, identify its weaknesses and helps to solve them quickly. All this contributes to creating a forward-looking corporate culture. Every company should disclose to its stakeholders the impacts of its activity on the planet, its objectives, its business principles and future prospects. Integrated reporting combines financial data with a whole range of other significant data providing financial investors and stakeholders with a complete view of the company. These reports ensure growth, comply with all the ESG requirements, and have a positive impact on the world we live in.

Integrated reporting helps to understand the why of the company’s strategies, governance and performance. It can also provide links to helpful information elsewhere, such as more detailed financial and statistical information or to external sources.

The evidence shows that companies that have a culture of integrated thinking and ESG compliance can create linkages between different drivers of value creation and are better prepare for the future. They are more resilient in the face of the short-term challenges and more flexible because they are managing risks in real time.


03 May 2022

Dr Paolo Motto

THREE & PARTNERS Accounting Tax Legal, Founder & Partner

THREE & PARTNERS Accounting Tax Legal