Tips on how to plan your annual and sustainability report

Autumn is here – and if you have not already started, it is time to think about your annual and sustainability report. It may seem like you just finished the last one, but if you give yourself a head start now, you will be thankful in a couple of months!

 

In this piece, Project Manager Tuva Dyrnes, Strategic Advisor Elisabeth Wiencke, Creative Director Michael Linnemann, and Tech Lead Dariusz Ksiazek share their best tips for creating a well-crafted and professional report — from planning to design and development.

Early Planning Is Key

Establish a clear timeline early on, preferably months before the deadline. According to Project Manager Tuva Dyrnes, starting the process well in advance is crucial, both internally and with any external agencies.

Many companies underestimate how long content production can take. Schedule dates for editorial and review meetings with the involved departments and the agency, and ensure there’s enough time to develop high-quality content.

Keep in mind that an agency often works on multiple annual reports simultaneously. Regular communication is essential to keep timelines and expectations on track.

Define the Goal

What should the annual report achieve? Will it be distributed to investors or used as an internal tool throughout the year? Whatever the goal, it should be clear to everyone involved. This ensures the report reflects the company’s vision and objectives.

Once the report is complete, have a clear distribution strategy. This can give the report the attention it deserves and contribute to both internal pride and external recognition.

Evaluate the Process

After the report is published, take the time to evaluate what worked and what could have been better. This provides valuable insights that can improve next year’s report. Involve both internal resources and external partners in the evaluation to gain a comprehensive perspective.

Only Have Limited Internal Resources?

Ask your agency for help. Most agencies are happy to assist with strategy, planning, copywriting, interviews, photography, and proofreading.

Ferd årsrapport 2023

Use Storytelling as a Strategic Tool

Strategic advisor Elisabeth Wiencke emphasizes the importance of viewing the annual report as more than just documentation to meet regulatory requirements. Instead, see it as an opportunity to tell an engaging story that reflects your company’s identity and values. “An annual report should capture the reader’s interest from the very beginning and maintain it throughout. This is best achieved by thinking strategically about the content,” says Elisabeth. She recommends the following:

Tell a Story

Start by defining the key “characters,” which could be projects, teams, or initiatives. Then describe the “journey” these characters have undertaken during the year, including challenges they’ve faced and how they’ve overcome them.

Focus on People

Emphasize how your employees have contributed to the company’s success. Interviews, anecdotes, and quotes can personalize the report and provide a human perspective that resonates with readers.

Be Transparent

While the goal is to engage, it’s important to maintain a high degree of transparency, especially regarding challenges and how they were addressed. This builds trust and shows that the company values honesty and integrity.

By incorporating storytelling, you can transform the annual report from a dry rundown of financial figures into an inspiring narrative that people look forward to reading each year. In doing so, the annual report becomes a powerful tool for branding and engagement.

“We’ve Always Done It This Way”

An annual report doesn’t have to be dull. Creative Director Michael Linnemann urges companies to think outside the box when it comes to design and content.

Communicate More Than Just Numbers

An annual report is more than a collection of financial statements. Consider how design can bolster the message you want to convey to investors, employees, partners, and potential job seekers. Engage readers with visual elements, infographics, and a cohesive layout. It’s also wise to audit your image assets — what’s already in your library, are there photos of employees and board members you can use, and are there standout projects that deserve a dedicated photoshoot?

Draw inspiration from award-winning reports, such as those recognized by the Farmand Award, to see how you can elevate your own.

Leverage Digital Opportunities

While a printed report can be impressive in meetings, the digital format is far more flexible and engaging. Incorporate videos, animated graphics, and interactive elements to provide readers with a dynamic experience.

Ensure your report functions seamlessly on both mobile and desktop, and that tables and graphs are user-friendly across all devices.

Think Long-Term

Tech Lead Dariusz Ksiazek explains that choosing a digital solution over a traditional printed or PDF report not only provides practical advantages but also environmental and cost savings.

With a digital approach, you don’t need to start from scratch every year. You can build a framework that’s easily updated with new content. This saves time and money, especially by eliminating printing costs.

Digital reports reduce paper consumption and carbon footprint while ensuring the report is accessible at any time. The ability to search within the report, navigate between different sections, and interact with elements like videos and infographics offers a much better user experience.

One Platform for Everything

Using platforms like WordPress makes it easy to manage both your website and annual reports from one place. The proofreading process becomes simpler, and you’ll have the ability to edit your own content right up until publication. This creates a smooth handling and organization of the report itself—from content production to publishing—while digital reports provide valuable insights into user behavior that can be used to optimize future reports.

Sallaum Lines branding

ESEF and CSRD – New Standards for Digital Financial and Sustainability Reporting

Since January 1, 2020, ESEF (European Single Electronic Format) has been the mandatory standard for annual reporting for all publicly listed companies in the EU and EEA. The goal is to ensure greater transparency and accessibility in financial reporting, making companies’ financial statements easily available and understandable to investors and the public.

All publicly listed companies must publish their annual reports in the ESEF format. This includes the use of iXBRL (Inline eXtensible Business Reporting Language), which makes the report both human-readable and machine-readable. As companies now prepare their annual reports for 2024, it’s important to be aware of the following ESEF requirements:

  • iXBRL Tagging: Financial data must be tagged to ensure compatibility and machine readability.
  • XHTML Format: The annual report must be delivered in this format to be both human- and machine-readable.
  • Audit of Tagging: Auditors should verify the correctness of the iXBRL tagging in the annual report.

CSRD – Expanded Requirements for Sustainability Reporting

Starting in 2024, the CSRD (Corporate Sustainability Reporting Directive) will come into effect for large companies and publicly listed enterprises, as part of the EU’s green transition. CSRD expands the reporting requirements to include sustainability information, focusing on companies’ impact on the environment, society, and governance (ESG).

The key requirements in CSRD include:

  • Expanded Sustainability Reporting: Companies must report on how their operations impact the environment, human rights, social responsibility, and governance practices.
  • Double Materiality: Companies must consider both how sustainability issues affect the company and how the company affects sustainability.
  • ESEF Compatibility: Sustainability reporting must be integrated into the ESEF format and tagged with iXBRL, just like financial reporting.
  • Grading: Reporting must follow EU standards for sustainability reporting, such as the European Sustainability Reporting Standards (ESRS).

This development requires a holistic approach to annual reporting, where both financial and sustainability information must be integrated and presented in a way that ensures transparency and compliance with the new regulations.

We have extensive experience in ensuring that annual reports meet necessary requirements, and we help you simplify the reporting process, whether it involves financial information or sustainability initiatives.