require all companies (except small companies) to prepare a strategic report which will be presented separately to the directors’ report and will replace the current business review. The aim of the strategic report is to pull together the company’s strategy, business model and risks facing the company and link this through to the financial statements and remuneration of company directors. The regulations regarding directors’ remuneration, which include the requirement for quoted companies to disclose a single remuneration figure for each director, are expected to be laid before parliament shortly. Quoted companies will need to ensure they include specific information on the company’s strategy, business model, human rights and gender diversity;
require quoted companies to include information on greenhouse gas emissions in their directors’ report. This report will be required to contain an annual quantity of emissions, in tonnes of carbon dioxide equivalent, in respect of emissions produced by “activities for which that company is responsible”, including fuel usage and resulting from the purchase of “electricity, heat, steam or cooling” by the company. Companies will be required to disclose the methodology used to calculate these figures including prior year comparative information for the second and subsequent year of reporting;
remove a handful of other currently required disclosures in the director’s report such as the principal activities of the company during the course of the year, and;
replace the option to prepare summary financial statements with an option to provide a ‘strategic report with supplementary material’. The supplementary material consists of some administrative details, details of any qualifications made by the company’s auditor in its report on the full annual accounts and, for quoted companies, the “single total figure table” for directors’ remuneration.”
Published human capital data
Integrated reporting is an initiative designed to help organisations to report on the mix of tangible and intangible assets for their stakeholders. The International
As part of the Valuing your Talent project, we have explored the quality and type of data reported in external reports by FTSE 100 organisations. Our report Reporting human capital: illustrating your company’s true value found that there are gaps in the types of data being reported, and that organisations are often missing key issues in their external reports. This means that more work needs to be done to improve the quality of human capital disclosures.
Internal reporting is far more prevalent than external reporting, as this is important in the evaluation of the effectiveness of HR interventions and guiding future HR strategy, while also protecting business confidentiality where desired. It takes a number of forms.
Generally any human capital data reported internally should:
be reliable and open to scrutiny
be accompanied by adequate explanation
be presented in a manner that is easily understandable for the audience
be related to business needs
enable managers to identify appropriate actions that will improve business performance.
To find out more about human capital reporting, read our research report Human capital metrics and analytics: assessing the evidence for the value and impact of people data.