How to add impact to your reporting
It’s no secret that key stakeholders in 2024 expect organisations to be accountable for more than just financial performance, and rightly so.
They’re increasingly looking for organisations to report on – and be responsible for – their impact on employees, communities, society, and the environment.
As a result, leading brands prioritise sustainability, the transition to net-zero emissions, and diversity, equity, and inclusion (DE&I).
These priorities are no longer just nice-to-haves, they’re essential elements that show meaningful change and must be embedded in an organisation’s purpose, values, and strategy.
The growing importance of impact reporting
Deloitte’s article in Insights Magazine highlighted that the business community is responding to the growing demand for accountability.
Companies are beginning to understand regulatory expectations, gather data to measure their societal impact and engage stakeholders through dialogue and disclosure.
Importantly, businesses are adopting a broader concept of sustainability, considering how today’s actions impact people, the planet, and prosperity in the future.
This approach is seen as a key strategy for long-term success and resilience.
This shift is echoed by the 2023 EY Global C-suite Insights Survey, which found that over 81% of organisations already have a Chief Sustainability Officer (CSO) or an equivalent role within their leadership teams.
90% of executives report that their boards actively oversee sustainability and ESG agendas.2023 EY Global C-suite Insights Survey
This highlights how integral impact reporting is in corporate governance and strategy.
Reporting regulations and best practices
Organisations must now report on their impact in line with established codes of conduct and governance standards.
For example, the Financial Reporting Council (FRC) Code emphasises the need for sustainability reporting within annual reports, while the IFRS Sustainability Disclosure Standards and the EU Corporate Sustainability Reporting Directive (CSRD) further codify these expectations.
Impact reports that address key challenges and set measurable targets, such as those aligned with the United Nations Sustainable Development Goals (SDGs), are now considered best practice.
Frameworks like double materiality ensure that organisations report authentically, and avoid greenwashing and purpose-washing.
These disclosures provide transparency, demonstrating how companies are addressing critical issues and making progress on their sustainability and DE&I ambitions.
Taking a strategic approach to crafting your impact story
So how can your organisation effectively communicate its impact to stakeholders, while integrating this narrative into your overall strategy and brand?
✅ Evaluate your stakeholder communications
Your corporate online platform is often the first place stakeholders will look for information as it’s where your brand footprint is most visible.
But your annual report also plays a critical role.
It serves as a comprehensive snapshot of your operations and activities, providing validated detail and data. This makes the annual report an ideal platform for showcasing your impact story.
✅ Leverage your annual report
As the primary tool for stakeholder engagement, your annual report should highlight your organisation’s purpose-driven impact.
The FRC Code explicitly states that sustainability should feature prominently in narrative reporting, making the annual report a key communication piece in building trust and credibility.
It should address stakeholder concerns, demonstrate the organisation’s impact on these issues, and lead the way in corporate compliance.
A prime example of this is the ICAEW Annual Report, which has set the standard for impact reporting.
Last year’s report won a gold award for its online presentation, and this year’s report continues to build on the principle that people are the organisation’s greatest asset.
By showcasing impactful human stories and progress against key strategic themes—such as strengthening trust in the profession and supporting the UN SDGs—the ICAEW report illustrates real impact in a clear, evidence-based manner.
✅ Supplement with dedicated impact reports
Even though an annual report is essential, it should be supported by dedicated impact reports that add depth to your brand’s social responsibility narrative.
These reports should maintain the same transparency and data-driven rigor as the annual report to ensure authenticity.
Together, these communications will form a comprehensive picture of your organisation’s impact and responsibility.
Apply a holistic strategy for impactful reporting
To truly engage with stakeholders in an authentic and meaningful way, you need a robust and well-considered strategy that addresses all areas of impact.
Once this strategy is in place, your communications plan should include a suite of focused impact reports, supported by the annual report as part of an interconnected set of corporate communications.
Ideally, all of this content should be accessible online within a stakeholder engagement or investor hub, and you can complement this with an active social media campaign to maximise reach and exposure.
This integrated approach will not only enhance your brand’s credibility but also ensure that your impact story resonates with the audiences that matter most.
If you’d like to discover more on how to enhance your corporate communications and reporting, we’d love to hear from you.
