Strategic and forward-looking
The statement is expected to provide insight into the company's strategy and its implementation. Where relevant, it is expected to give due regards to the short term, medium term and long term implications of the facts and circumstances reported
Companies are expected to disclose material non-financial information on their strategy and objectives. Disclosures should provide insight into the strategic approach to relevant non-financial issues; what a company does, how and why it does it.
The disclosure of objectives and targets enables stakeholders to put the position and performance of the company in a context, and may be helpful when assessing future prospects. Objectives and targets may be presented in qualitative or quantitative terms.
A company may disclose how it is moving towards a sustainable business strategy and how environmental, social and governance aspects can support the achievement of those business goals. It could also disclose targets relating to KPIs reported, and explain the uncertainties and factors which may underpin forward-looking information and future prospects.
Where relevant, the non-financial statement should provide information on the short-term, medium-term and long-term implications of the policies, facts and circumstances reported.
Forward-looking information enables users of information to better assess the resilience and sustainability of a company's development, position, performance and impact over time; and measure progress towards achieving long-term objectives.
A company may disclose the potential impact of climate change scenarios on its expected results, strategy and activities.