ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders
Orlin Mining's board states in its annual report that it applies 'integrated thinking'. Analysis shows the sustainability team, finance team and operations team each report separately, using different targets, and the report simply places their sections side by side. Which conclusion is most appropriate?
The report shows information in silos rather than connected content, so integrated thinking is not embedded. Integrated reporting requires connectivity between strategy, performance and the capitals; simply placing financial and sustainability sections side by side, with different targets, does not demonstrate this.
- AThe company is applying integrated reporting fully because it includes financial and non-financial sections
- BThe report is compliant with integrated reporting because it is long and detailed
- CThe report lists information but does not show connectivity, so integrated thinking is not yet embeddedCorrect
- DIntegrated thinking only concerns the financial capital and so the separate teams are acceptable
Explanation
Integrated thinking means the organisation considers the relationships between its operating units and the capitals it uses and affects. Placing separate silo reports side by side shows no connectivity of information, a guiding principle of integrated reporting. Length is irrelevant, and integrated thinking spans all capitals, not just financial.
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