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Reporting on key performance indicators relating to non-financial capitals: Evidence from Sri Lankan integrated report preparers

Wijesinghe, N.; Abhayawansa, S.; Adams, C.A.


N. Wijesinghe

S. Abhayawansa


S. Senaratne

N. Gunarathne

K-H Lee


The International Integrated Reporting (<IR>) Framework guides companies to consider a broad range of capitals, including non-financial capitals, in the process of value creation and reporting. Companies' approaches to incorporating non-financial capitals into their strategy, decision making, and value creation have received little attention. This chapter examines how integrated report preparers in Sri Lanka use Key Performance Indicators (KPIs) to explain the use and transformation of the non-financial capitals to create value. Three categories of integrated report preparers are identified based on the duration over which integrated reports are prepared. Data was collected from the 2018 company reports. We find that the disclosure of KPIs relating to non-financial capitals increases with companies’ maturity in preparing integrated reports. Nearly half of the integrated report preparers have failed to display the alignment between non-financial capitals, topics material to stakeholders, risk management and company strategy. The formats used to disclose KPIs and periods covered by the KPIs are inconsistent, hindering comparability of company performance on capitals between companies and across periods. Most companies have not set targets in relation to KPIs on non-financial capitals, making performance evaluation difficult. More narrative content and less result-oriented quantitative information is provided on critical non-financial capitals relating to sustainability. The findings raise doubts about companies’ ability to leverage integrated thinking, a fundamental enabler of integrated reporting, and the genuineness of companies’ commitment to sustainability.


Wijesinghe, N., Abhayawansa, S., & Adams, C. (in press). Reporting on key performance indicators relating to non-financial capitals: Evidence from Sri Lankan integrated report preparers. In S. Senaratne, N. Gunarathne, & K. Lee (Eds.), Integrated Reporting (IR): Business Cases for Sustainability. Springer Verlag

Acceptance Date Jul 6, 2022
Deposit Date Jul 8, 2022
Publisher Springer Verlag
Book Title Integrated Reporting (IR): Business Cases for Sustainability
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