#Japan #Tokyo #Social Impact #Integrated Report #ESG Disclosure

A Breakthrough in Integrated Reporting

In today's corporate environment, integrated reporting has emerged as a crucial tool for conveying a company's value. However, the process of creating these reports often involves overwhelming manual labor and expert knowledge. A new Integrated Reporting Automated Generation System promises to digitize and structure the creation process, significantly reducing costs and time by up to 50% whilst enhancing the quality of reports.

The Challenges of Integrated Reporting

Integrated reports must combine financial and non-financial data into a coherent narrative. Companies face numerous challenges in this area, including:

• - The difficulty of delivering advanced storytelling that integrates management strategies and non-financial information.
• - The labor-intensive exchanges and document sorting required for collaboration among departments.
• - The need for consistent insights and narrative alignment as reports are refreshed annually.

As international disclosure standards such as ISSB, TCFD, and TNFD are established, companies are increasingly required to demonstrate their ability to communicate financial and non-financial information cohesively. The reality, however, is that many organizations suffer from a lack of specialized personnel, leading to higher dependence on external consultants and escalating costs.

Even companies listed in the Tokyo Stock Exchange's Growth Market express a strong desire to issue strategic integrated reports, but they often encounter significant execution hurdles.

The Solution: Integrated Reporting Automated Generation System

The new Integrated Reporting Automated Generation System offers several innovative features:

• - Input Automation: It extracts structural elements from medium-term plans, investor relations materials, KPIs, and more for seamless organization.
• - Template and AI Narrative Generation: This feature automatically constructs the framework of the strategy and value creation narrative.
• - Consistency Check: The system can automatically detect inconsistencies and missing information between sections.
• - Integrated Financial and Non-Financial Framework: Utilizing SIR’s unique framework, it enhances the connectivity between non-financial and financial elements.

This combination of features aims to achieve narrative consistency, production speed, and persuasive impact all at once.

Effective Cost and Time Reduction

The system integrates interviews with management, business reports, and financial analyses into a single narrative. Early adopters report:

• - A reduction in production time by approximately 40% and costs by 50% within the first year.
• - Significant improvements in the quality of disclosures and enhanced engagement from internal stakeholders.

Utility and Rarity

Utility:

• - Structured design based on the practical workflow of the production scene.
• - A natural inducement of the connections between management strategy, ESG, and finance.
• - Any company can generate compelling storytelling.

Rarity:

• - The first automated generation system that digitizes and structures the “rules” of integrated reporting.
• - Joint development by a collective of experts in ESG and impact evaluation.
• - A unique narrative-automation model available in the domestic market for large and medium-sized companies.

Call to Action

For companies interested in becoming pilot participants in this groundbreaking initiative, please contact Social Impact Research Systems Development Department. A free 30-minute Zoom meeting is available for inquiries at this link. Together, let’s revolutionize the way integrated reports are crafted in the corporate landscape.