Investors need more than revenue growth and headline profit. They need to understand how a company generates cash, manages risks, allocates capital, and creates long-term value through its financial results, operational performance, governance, sustainability, and future strategy.
Investors Still Depend on Company Reporting
PwC’s 2025 Global Investor Survey found that 69% of investors rely heavily on financial statements when making decisions, while 64% rely on investor-focused corporate communications. Investors also increasingly use non-financial information in their valuation models, particularly information about competitive advantage, industry trends, and innovation.
This makes the annual report more than a compliance document. It is an opportunity to explain what drove revenue and profit, whether earnings translated into cash flow, how major risks were managed, and whether management delivered on previous commitments.
A report that clearly connects strategy to measurable results can make a company easier to understand and value. Incomplete or inconsistent disclosure can create uncertainty and lead investors to request further due diligence.
Significant Reporting Gaps Remain
There is no universal percentage showing how many companies produce an “improper” annual report because disclosure requirements differ by market, ownership structure, and company size.
However, credible 2025 research shows that important gaps remain.
A 2025 study by IFAC, AICPA and CIMA found that although 98% of the large companies studied disclosed some sustainability information, only 44% incorporated that information into their annual reports. In other words, 56% had not yet integrated sustainability information into the annual report, making it harder for investors to review financial and non-financial performance in one place.
The OECD Global Corporate Sustainability Report 2025 also found that companies representing 91% of global listed-market capitalisation disclosed sustainability-related information. However, by number of companies, reporting coverage remained below one-third of all listed companies. This indicates that disclosure is concentrated among larger corporations, while many smaller listed businesses still provide limited information.
What Investors Expect From an Annual Report
An investor-focused annual report should clearly present:
- Financial performance, including revenue, margins, debt, liquidity, and cash flow
- Key business drivers, operational achievements, and factors affecting results
- Material risks, management responses, internal controls, and governance oversight
- Capital-allocation priorities, including investment, expansion, debt management, and shareholder returns
- Measurable financial and non-financial targets, supported by progress updates and future priorities
PwC’s 2025 survey also found that 78% of investors believe materiality assessments and sustainability disclosures have a moderately or very positive effect on investor engagement. This shows that relevant, verifiable reporting can strengthen how investors understand and engage with a company.
Structuring and Coordinating the Annual Report Preparation Process
Riset Prima Asia supported the annual-report preparation process by developing the report structure, mapping the data required for each section, and assigning information needs to the relevant corporate functions. The scope covered key areas such as financial and operational performance, corporate governance, risk management, sustainability initiatives, strategic developments, and management outlook. The team also reviewed existing materials, identified missing or inconsistent information, and prepared targeted requests for clarification and additional data.
Inputs from finance, corporate secretary, investor relations, human resources, legal, risk management, operations, and sustainability were coordinated and consolidated into a consistent narrative. The final report connected quantitative results with business context, management priorities, key risks, and future direction, helping investors and other stakeholders assess the company’s performance, governance, resilience, and long-term prospects.
Visit Riset Prima Asia to learn how we can strengthen your annual report and investor confidence.
