Telkom x Leading in Governance

5 ways to lead ESG with integrated reporting

In a world where accountability is in the spotlight, more and more companies are focused on their sustainability goals, their climate-change journey, their ability to be future-proof, and ensuring that their plans are not just for appearance but are based on fact.

This is where integrated reporting (IR) comes in handy. IR gives organisations the opportunity to articulate their financial performance, operational strategies, Environmental, Social, and Governance (ESG) goals, evaluate their overall impact, and share their value-creation story for the benefit and sustainability of the business, employees, community, and other stakeholders.

“IR is crucial for any forward-looking business. It enhances the way we think, plan and report,” says Mary Thipe, Senior Manager, Telkom Group Integrated Reporting and Sustainability (ESG) Reporting. “It also gives us the chance to communicate our strategies, risks, financials, and sustainability performance in a way that offers a holistic, comprehensive, and future-orientated view for both internal and external stakeholders.”

Based on measures of authenticity, meaning, innovation, and performance, IR has been heralded as the future of corporate reporting. With that in mind, here are five ways to make the most of IR...

1. Understand what affects value creation and sustainability

It’s important to unpack all the short, medium, and long-term goals, assets, and expenses likely to impact investors' decision-making. This could have a significant influence on an organisation’s ability to create future value and invest in sustainable business practices.

2. Aim for balanced reporting that covers both positive and negative performances

To appear credible, businesses need to report on both their positive performance outcomes as well as the negative challenges they face. This balance offers a more transparent and accurate look at the organisation.

3. Explore future value creation, not just this year’s performance

Instead of only unpacking the overall performance of the current year, it’s vital to speak to how a business is shaping the lives of its stakeholders and the industry in general. This can be based on ambitions in areas where the organisation is creating future value.

4. Define strategic objectives, goals and pillars

It’s pivotal that an organisation assures all stakeholders of its plans and ambitions by disclosing them through clear objectives, goals, and pillars. Actively consider how these areas are related and how their success will be measured.

5. Link everything back to the ESG strategy.

Often, the ESG strategy is only unpacked in one section of the report. However, it’s a monumental game plan that should touch every single aspect of a business. Instead of only touching on ESG in one section, use it as the golden thread that ties everything together and underpins future value creation.

Last week, Telkom was awarded “Excellent” at the Ernst & Young (EY) Integrated Report Awards 2022. This is the sixth year in a row that the telco has taken this award home. “Excellent” is awarded to entities that progressively achieve a higher level of adherence to the spirit of integrated reporting.

“At Telkom, we work hard to clearly communicate the value we create for all stakeholders,” reveals, Thipe. “We make it our mission to disclose both positive and negative performances, we reflect on previous reports and offer feedback, and we outline our strategic focus – the risks and opportunities.”

Thipe goes on to say, “I am extremely proud that we have been awarded ‘Excellent’ for the sixth year in a row by EY. This proves our commitment to openly reporting on our ability to create value for all stakeholders.”

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