THE CHALLENGE OF INTEGRATED REPORTING IN THE DUTCH OIL AND GAS INDUSTRY

Abstract

Integrated reporting (IR) is the process of communicating sustainable value creation, internal dynamics of an organization’s strategy, governance, performance and prospects in a more cohesive and efficient approach than traditional financial reporting. It aims to ensure that an organization’s short-, medium- and long-term future value is expressed by considering its sustainability impacts, targets and expectations and linking them with financial results. However, most organizations still uncertain about what to report and have doubts whether IR is relevant for them. In this research, the conceptual framework of IR, the development of IR in the Netherlands and the challenges of IR implementation will be given. This research paper focuses on the oil and gas industry, which is very important to the world’s economy and at the same time has significant impacts on the environment. This paper also follows a qualitative research approach and aims to thoroughly analyze which IR aspects are valued the most important in the Dutch oil and gas industry. Findings from this research aim to provide insights to students and researchers in economic field about IR practice and the challenges in implementing it. Towards the end, the author tried to list IR aspects that can be considered important in establishing integrated report by early IR adopters in the industry.