The reporting puzzle – beyond financial performance

FOR decades, corporate reporting has adhered to a well-established formula, focusing primarily on financial performance metrics to satisfy investor demands. However, today’s business landscape necessitates a more comprehensive narrative. Companies must adopt a holistic framework integrating financial performance with governance, risk, and compliance (GRC) as well as environmental, social, and governance (ESG) factors.

What does this paradigm shift mean for companies moving forward, and what should they look out for to keep up with this ever-changing landscape?

From discretionary practice to strategic imperative

Long-term success is no longer solely defined by financial performance but also by the strategic integration of GRC and ESG factors. Climate change, labour practices, diversity, ethics, and risk management are now some of the crucial components that shape a company’s reputation, risk profile, and long-term sustainability. For example, in Singapore, climate change and carbon emissions are the top ESG priorities for investors, with 46 per cent identifying climate as a key factor.