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‘Financial disclosure’ obligations have always been primarily concerned with financials, with some businesses even viewing this obligation negatively. In today’s business climate however, companies who want to either interest investors or enhance their valuations need to have an agile and responsive approach to providing data. Equally important is to understand what kind of information outside of P&L investors are now using to determine their financing decisions.
The features of ‘extra financial disclosure’ tend to be enormously positive factors that can put any business in a favorable light to investors, analysts, the media, employees and other stakeholders.
What is ‘Extra Financial’ Disclosure?
‘Extra financial information’ - often called ‘non-financial information’- is data that can include a wide range of issues that are likely to have a short, medium and long-term effect on business performance. These can include:
- Intellectual capital management
- Innovation, research and development (R&D)
- Customer satisfaction
- Cybersecurity
- Climate change and natural resource management
- Consumer and public health
- Reputation risk
- Environmental and social impacts of corporate activity such as biodiversity impacts and community impacts.
What do Investors Want?
Studies indicate that investors are looking for better and more detailed disclosure, but ‘quality not quantity’ is important. Issues such a company’s approach to its corporate social responsibility (CSR) and its sustainability performance are now factors that affect investment decisions.
They also want:
- Direct engagement and communication from the company and its key executives
- Quality disclosure not quantity, particularly with regard to social performance
- Develop a considered and targeted approach to online investor and analyst communication – focusing on how users interact with online content and the usability of this source of information
Improved disclosure on material extra-financial risks and opportunities in the context of an organization’s business model and strategy
What You Should Include in Your Online PressKit for Disclosure
By creating an Online PressKit for Disclosure, companies can present their extra financial disclosure data in a transparent, dynamic and interactive way. Think of it like creating an ‘online filing cabinet’ or an information repository for investors, where you can:
- Show off the company value-added achievements
- House video interviews with key executives
- Address any kind of risk mitigation
- Respond to industry or economic events
- Highlight your forward-thinking measures.
Your Disclosure PressKit can include also include an interactive map that shows the physical locations of your office network, along with data on the facilities, function and capacity, number of employees and financials related to each location.
Investors should be able to effortlessly and electronically get exactly what they need, when they need it, and from one designated place that makes the relevant data available. This level of voluntary transparency is therefore a huge competitive advantage in itself and gives potential investors a strong message about the kind of company you are.
Contact your Relationship Manager to discuss getting started to create your Online PressKit for Disclosure.