From sustainability to integrated reporting: how the IIRC framework affected disclosures by a financial institution in Australia

This research explores the evolution of reporting in a financial institution and examines whether implementing the Integrated Reporting <IR> Framework enhanced the quality of those disclosures. Research goals are explored through a case study on the sustainability reporting and <IR> practices of CBD, a financial services company based in Australia, and its journey of disclosure. The analysis suggests that the approach proposed by the IIRC does not support disclosure but rather legitimises a company’s activities for the purposes of restoring its reputation. The ‘accountingisation’ of the process makes information more comparable from a financial point of view, but not necessarily from a social or environmental standpoint. We argue that the concept of materiality, highlighted in the IIRC’s Framework, has shifted its focus from stakeholders to shareholders. By aligning its reporting practices with emerging reporting trends guided by the IIRC, this financial institution participated in the evolution of <IR> and ultimately legitimised its operations with shareholders. The research shows that CBD has reached the last stage of a process highlighted in previous studies: definitive acceptance of, and compliance with, a new set of accounting rules that shifts focus from stakeholders to shareholders with the aim of standardising reporting output. Possible future changes in the evolution of the <IR> Framework might influence a company’s approach to reporting.