Excellence in Integrated Reporting

Vodacom’s report is forward-looking with an appropriate emphasis on strategy. Sufficient detail is provided in respect of each of the six capitals, including how each capital supports the group’s strategy and purpose. We particularly liked the granularity provided on the value created, preserved, and eroded for each of the capitals. There is a high level of integration within the report with a clear link being made between material matters, the capitals and strategies impacted, and the related risks. The disclosures of how the group is responding to ‘hot topics’ on a macro, industry, and company level and how these topics have changed year-on-year is useful to the reader. The disclosures detailing the interests and expectations of the group’s stakeholders, the value delivered to each stakeholder group, and the evaluation of the strength of these relationships are excellent.  The group’s strategic ambitions together with both short-term and medium-term priorities as well as linkages to material matters and the capitals provide a strong forward focus to the report.

Absa’s report focuses on value creation and contains an appropriate mix of forward-looking information and performance disclosures. We particularly liked the disclosure provided with respect to the outlook of the business that provides useful context to those factors that could influence future value creation. The introduction to the report provides a useful roadmap to the value creation story that follows and immediately makes it clear as to the materiality lens that is used to determine what is included in each of the group’s separate reports. The materiality determination process is explained in detail and the material matters themselves are unpacked and integrated with risks and opportunities, possible business impacts, effects on capitals, and the group’s strategic pillars. The Finance Director’s report, the inclusion of peer comparisons, and the infographic that shows ‘finances at a glance’ is excellent.

Kumba’s report has an excellent strategic focus with the appropriate amount of detail being provided. The explanation of the group’s business model is comprehensive, and we particularly liked the inclusion of revenue and cost drivers, material risks and opportunities, and the detailed impacts across the group’s value chain. Each of the capitals is covered in detail which includes the necessary inputs for each capital, challenges in securing these inputs, actions to enhance each capital as well as the impact of the group’s activities on each capital. Key board focus areas are explained in depth and linked to strategic focus areas and material risks. The explanation of the group’s operating context is comprehensive and linked to the various other content elements presented within the report. Some of the detailed financial information, such as the movement in the break-even price split between controllable and non-controllable costs, is excellent. 

Life Healthcare’s report is sensibly structured, and the value creation story commences with a business model which is used as an index to show where more information can be found. The explanation of the group’s operating environment is detailed and provides the appropriate context to understand the business. The group’s material matters are comprehensively explained with links to where additional information can be found. We particularly liked the explanation of how the group’s strategy was developed as well as the level of detail provided about the strategy itself. The report clearly differentiates between short, medium, and long-term strategies. The detailed presentation of the value created for each of the capitals is innovative. The disclosure of the group’s risks and opportunities and the way in which these are linked to board oversight and remuneration-related key performance indicators is excellent.

Truworths’ report has consistently been in the Top 10 since the introduction of the Excellence in Integrated Reporting awards. The report is easy to navigate, avoids the use of jargon and is written using language that is clear and concise. The information that is provided is specific to the group rather than being mere generic or boilerplate disclosures. There is a clear emphasis on value creation with detail provided for each stakeholder group about how value is created together with the metrics that are used to measure the value that has been created. We particularly liked the level of detail provided for each material issue and the way in which these disclosures included both backward-looking and forward-looking information. Detailed outcomes are presented for each of the capitals together with cross-references to where more information can be found as well as an indication of the stakeholders and Sustainable Development Goals impacted. The governance disclosures, especially those that focus on the Board’s deliberations, are excellent.

Exxaro’s report commences with a valuable infographic that uses the double materiality concept to steer readers to the relevant report within their reporting suite. We particularly liked the roadmap that shows how the group creates and preserves value together with references to where more detailed information can be found. The group’s risks and opportunities are presented in detail and each of the group’s opportunities are linked to a related strategic objective and strategic response. Each of the six capitals are comprehensively covered and disclosure is explicitly provided for the reader to understand the availability, quality, and affordability of the capitals that shape the group’s decision making. The graph that shows the main drivers of the year-on-year movement in EBITDA is an example of the excellent level of detail that is provided within this report.

Netcare’s report is well balanced, integrated, and includes appropriate explanations of how it is responding to both its internal and external challenges. The report has a clear focus on value creation and sensibly starts with the group’s value creation model that shows the steps in the value creation process. The group’s material matters are presented early-on in the report and a double materiality lens is used to direct the reader to where more information can be found on each of these matters. We particularly liked the detailed focus on the group’s operating environment and the way in which each issue was summarised with ‘key takeaways’ and linked to the relevant risk, stakeholder group affected, and the strategic pillar that responds to the issue. The way in which the governance section includes key board activities for each of the material matters is excellent.

Woolworths’ report is sensibly structured, attractive and it is easy to navigate the value creation narrative. The forward-focus of the report with its appropriate emphasis on strategy is excellent. Governance disclosures are presented early-on in the report and key board discussions and those matters which have been approved are presented in detail. Material matters are presented together with a strategic response to each matter. The group’s risks are clearly presented, appropriately integrated with strategy, and illustrated with a heat map that shows the likelihood and consequence of each risk. Key performance indicators are presented as a measure of strategic performance and accompanied by an explanation of why each metric is important and how it is measured. We especially appreciated the approach taken to disaggregate the overall group KPI into specific KPIs for each operating segment.