How does integrated reporting change sustainability communications? A study comparing companies’ sustainability communications before and after integrated reporting

Objective of the study The objective was to study how companies communicate sustainability before and after the adoption of integrated reporting. Integrated reporting means publishing a concise report (integrated report) annually about how a company creates value to its stakeholders. It should acknowledge both financial and non-financial aspects, and it is sometimes considered as a combination of the annual report and the sustainability report. Integrated reporting should lead to integrated thinking, which in practice means that also non-financial aspects (social and environmental sustainability) are taken into consideration in decision-making and strategy. Methodology The research was carried out as a qualitative content analysis. The data was gathered from CEOs and Chairmen’s messages in seven European companies’ corporate reports (annual, sustainability and integrated reports) from 2010 and 2015, i.e. from the time before and after they were engaged in integrated reporting. Maximum variation sampling strategy was used in the selection of data, which resulted in two kinds of findings: detailed descriptions of each seven case, and shared patterns that lead to the key findings. Findings and conclusions Four key findings were discovered in the study. First, in terms of sustainability communications, the companies’ integrated reports resembled a great deal the previous annual reports, and not the sustainability reports. Second, the companies used the fit tactic more in their sustainability communications after integrated reporting. Third, the companies provided more quantitative information about financial than non-financial topics. Lastly, all companies did not show integrated thinking in their communications after integrated reporting. These findings indicate that integrated reporting does not drastically change a company’s sustainability communications, and all companies do not go through the same changes. In addition, integrated reporting does not automatically lead to integrated thinking. The study paves way for further research in the field