What is Integrated Financial Reporting?
Integrated reporting combines a company’s financial statements with non-financial information — strategy, governance, ESG performance, and risks — into a single report. The goal is to show how the business creates value over time, not just how it performed last year.
How It Works
- Builds on the IFRS-based financial statements
- Adds context: business model, strategy, risks, opportunities, governance, sustainability metrics
- Aligns with the International Integrated Reporting Framework and increasingly with ISSB / IFRS S1 and S2 standards
- Read mainly by long-term investors, regulators, and rating agencies
- Replaces or complements separate annual reports, sustainability reports, and governance reports
Saudi Context
Tadawul-listed Saudi companies are moving toward integrated reporting as part of Vision 2030 transparency goals. The Capital Market Authority (CMA) and the Saudi Exchange have introduced ESG disclosure guidelines aligned with global standards, pushing issuers to publish more than just a financial statement.
Example
A petrochemical company in Yanbu publishes an integrated annual report. The financial section shows revenue, profit, and balance sheet. The strategy section explains how the company is decarbonizing in line with the Saudi Green Initiative. Together, the two sections tell investors not just how much was earned, but how durable that earnings power is.