Amanda Swaffield highlights the focus on company stakeholders in new narrative reporting requirements for the coming reporting season.
The next wave of annual reports will shed more light on how companies are taking the needs of their stakeholders into account when running their business. Companies are under increasing pressure to justify how they are contributing to wider society – looking at the broader value they create in the long-term for stakeholders and the importance of those stakeholders for the company’s sustainable long-term success.
Investors are increasingly looking at non-financial information when making investment decisions. The climate change challenge we are currently facing highlights more than ever how crucial it is that companies articulate the environmental, social and governance (ESG) factors that will lead to long-term success and a resilient business model. The new disclosure requirements described below present directors with a real opportunity to showcase good governance and how they are discharging their duty to all stakeholders.