Articles

At the recent 2026 QCA Annual Conference attended by Perivan, a panel discussion entitled ‘Turning the page on excessive corporate reporting’ tackled a question that resonated with the attendees from across UK boardrooms. As reporting requirements continue to expand, are annual reports becoming better communication tools, or simply lengthy compliance documents?

The discussion brought together perspectives from government, academia, sustainability specialists and listed company practitioners. While opinions varied, there was clear consensus on one point: corporate reporting has reached an inflection point.

The challenge is no longer simply how to disclose more information, but how to communicate more effectively.

The Reporting Challenge

Effective corporate reporting plays an important role in supporting UK growth and in maintaining confidence in UK PLCs. However, over the past decade, annual reports have grown significantly in size and complexity.

New accounting standards, governance requirements, sustainability disclosures and stakeholder expectations have all added layers of reporting. Most of these requirements were introduced for good reasons, yet the cumulative effect has been substantial.

The result is a paradox familiar to many company secretaries and finance directors: companies are investing more time and resources into reporting than ever before, while investors often struggle to identify the information that matters most.

Transparency remains essential. But volume alone does not guarantee understanding.

Modernisation Creates an Opportunity

The Government’s Modernisation of Corporate Reporting initiative presents an opportunity to rethink how reporting works in practice. A recurring theme in the QCA discussion was the need to move beyond incremental change. Questions raised included:

• How can reporting remain proportionate for smaller listed companies?
• What information genuinely belongs in an annual report?
• What information could be delivered more effectively through alternative channels?
• How can reporting frameworks remain relevant in an increasingly digital world?

These are important questions because today’s reporting framework was largely designed for a paper-only based environment. Investors, analysts and other stakeholders now increasingly consume information digitally, and reporting should therefore reflect that.

Why Proportionality Matters

A key challenge highlighted during the discussion was proportionality. The reporting needs of a global blue-chip business are not necessarily the same as those of a smaller or AIM-listed entity.

Any modernisation of the reporting framework will need to strike a balance between maintaining transparency, providing investors with meaningful, insightful information and ensuring reporting obligations remain proportionate to the size and complexity of the business.

Sustainability Reporting is Growing Up

One of the most interesting talking points on the panel was the changing nature of sustainability reporting.

For several years, organisations have focused on establishing reporting frameworks, collecting data and meeting disclosure requirements. Increasingly, however, stakeholders are asking a different question: “What difference has this actually made?”

The conversation is shifting from disclosure to outcomes.

Rather than simply reporting sustainability metrics, companies are increasingly expected to demonstrate how sustainability considerations influence business decisions, risk management, operational performance and long-term value creation. That evolution should be welcomed.

The most effective reporting does not treat sustainability as a standalone chapter. Instead, it integrates sustainability considerations into the broader business narrative, linking strategy, risk, governance and financial performance.

[See also: ESG Reporting: Annual Report Integration vs. Standalone Sustainability Report]

AI: A Solution, a Risk or Both?

No discussion about the future of reporting would be complete without addressing artificial intelligence.

The panel highlighted an important reality: AI is already changing how corporate information is consumed. Investors and analysts increasingly use machine-assisted processes to analyse disclosures, identify trends and compare companies.

Importantly, the conversation is not only about AI generating corporate reports; it is increasingly about AI being used to analyse and consume them.

This creates a new requirement for companies: information must be understandable not only to people, but increasingly to machines.

At the same time, the prospect of AI-generated reporting raises legitimate questions. If AI makes it easier to produce content, does reporting become clearer or more accurate?

Will technology reduce administrative burden, or create new layers of review and verification? The answer is probably both. AI will undoubtedly become a valuable tool in the reporting process. It can help improve consistency, identify duplication, streamline drafting and support review processes. However, accountability remains squarely with boards, management teams and their advisers.

In short, technology can assist judgement. It cannot replace it.

The Annual Report’s Enduring Purpose

Perhaps the most important theme emerging from the discussion was a reminder of what annual reports are ultimately designed to achieve. They are not simply compliance documents, they’re a communication tool.

Investors need to understand an organisation’s strategy, performance, risks and future prospects. Employees, customers and other stakeholders increasingly look to annual reports to understand an organisation’s purpose, culture and direction.

The best reports achieve something that regulations alone cannot mandate: they tell a coherent story.

As reporting frameworks evolve, that objective should remain front and centre.

Perivan’s Perspective

At Perivan, we see first-hand the growing complexity surrounding annual reporting and shareholder communications, and hear of the challenges directly from our clients.

Technology, regulation and stakeholder expectations will continue to evolve. AI will become more capable. Reporting frameworks will continue to develop. Digital communication channels will play a larger role.

Yet one principle is unlikely to change: Clear communication creates confidence.

The organisations that succeed will be those that communicate the most relevant information in the clearest, most accessible and engaging way.

A well-formatted and designed annual report can go a long way to achieving that.

The future of corporate reporting may not be about reporting less, but about communicating better.