Companies reported that connectivity was one of the biggest challenges with implementing IR, as it required breaking down silos within the organisation and changing existing data collection processes.

Companies also found it challenging to reconcile the needs of different stakeholders in reporting materiality. Improving the materiality determination process could help drive improvements in conciseness, completeness and reliability, while the research suggested thinking and practice is still immature in articulating the value organisations derive from non-financial capitals.

ACCA found that nearly half of the integrated reports reviewed ran over 150 pages, suggesting companies found it difficult to reconcile conciseness and meaningful communication with stakeholders.

The reviewers felt that only 51% of the reports reviewed achieved a balance of good and bad news in equal measure. Companies need to know what ‘good reporting’ looks like, before they can implement internal control processes and consider external assurance on their integrated report.

The report found that reporting quality was high, and identifies several benefits including more integrated thinking and management; greater clarity on business issues and performance; improved corporate reputation and stakeholder relationships; more efficient reporting; employee engagement and improved gross margins.

However, the research also highlights several areas where reporting can be improved, including widespread challenges in identifying and articulating what the organisation’s stakeholders perceive as ‘value’.

Yen-Pei Chen, subject manager of corporate reporting at ACCA, said: ‘Our research has found passionate support for the aims of IR among business leaders, but it has also pinpointed specific barriers to better reporting.

‘I hope that our findings will drive action from standard-setters, regulators, professional bodies and researchers to help remove these barriers. At the same time, I hope that this will give businesses – as well as public sector organisations – the confidence to embark on their integrated reporting journey.’

Richard Howitt, IIRC CEO, said the study showed the need for equal effort to be put in to raising the quality of integrated reports as well as the number.

‘It is also shows the concrete advantages not simply of companies undertaking integrated reporting but of their joining the international IR business network, to learn with others and to be global advocates for change,’ he said.

The association’s Insights into Integrated Reporting report draws together a review of 41 corporate reports from around the world with interview commentary from some of their preparers. Participants were members of the International Integrated Reporting Council (IIRC)’s IR business network.

ACCA’s report, Insights into Integrated Reporting, is here.