From Sustainability Report to Integrated Report: the suggested journey for Rifò S.r.l.

Abstract

The investment community is currently needing more data by firms with respect to matters that go beyond the usual financial info they disclose. The EU has been working on a directive to implement a common framework to disclose non-financial matters together with financial information. Companies have been publishing Sustainability Reports, but these lack of a comparable framework. The Integrated Report (IR) is already known by the accounting world and could be the tool the EU is looking for. Procedural questions about its implementation can emerge: is it hard to prepare? What if a firm is already disclosing a Sustainability Report, how many more steps are needed to comply with the IR vision? This thesis will attempt to respond to these questions firstly by analysing the European context and directives currently in force and in preparation. Secondly, the Value Reporting Foundation, SASB Standards, Integrated Reporting Framework and Thinking will be presented. After understanding where regulations and organisations active in this field are standing, a literature review is carried out to understand where the scientific community stands and how they are approaching the matter. Finally, the case of Rifò S.r.l., an Italian socially responsible clothes brand is investigated. The company is currently disclosing a Sustainability Report and this thesis analyses where they currently stand with respect to the IR and where they could go in the future to improve their position in the market.