Unified Disclosure Strategy

Nov 07, 2024
Sustainability Reporting, Proxy Reporting, Annual Reporting

Why is a Unified Disclosure Strategy Needed?

The disclosure landscape is increasingly complex, with topics like human capital, climate, and cybersecurity appearing across various documents, both filed and non-filed, as well as on corporate websites. While recent regulatory activity and ongoing shifts in stakeholder expectations result in a proliferation of new disclosure requirements, there also is increased scrutiny by investors and regulators for consistency and comparability across disclosure channels, leading to information overload and discrepancies.

Labrador helps create a strategic plan to communicate your company’s business, strategy, risks and related ESG/sustainability considerations that meets the needs of key stakeholders and minimizes unnecessary duplication and risk.

What is a Unified Disclosure Strategy?

Unified Disclosure Strategy

Decision-useful, comparative, consistent and thoughtful disclosures across suite of documents

Multiple Cross-Over Disclosure Topics

Business Overview

A brief overview of the business is common in each disclosure document. These sections often include both financial and operational achievements as well as extraordinary events. The amount of detail to provide the necessary context for stakeholders should be considered.

Strategy

A company’s strategy and ways it is creating long-term value are arguably the most important messages sought by stakeholders. Consistent and coherent messaging about strategy is an integral consideration when evaluating disclosure documents.

Risk

Companies should address “mission critical” business risks in each of its disclosure vehicles in different ways. How risk oversight evolves with changes in the company’s strategy, business and risk profile can also be an important component.

HCM

Stakeholders want to understand the company’s approach to HCM and how the approach aligns with their strategy and business model. Different audiences seek to understand distinct elements of a company’s HCM story.

Climate

The new rule’s requirements should inform a company’s risk management and oversight disclosures more broadly.

Cybersecurity

Responsive disclosures under the SEC’s rules should be congruent with a company’s other cybersecurity disclosures.

Board Oversight

Stakeholders look for thoughtful, engaged, and ongoing oversight of the company’s strategy, business, operations and key risks, which can include topics outside the traditional boundaries of a company’s business purpose. At the same time, Boards must demonstrate a high degree of independence, integrity, competency and efficiency.

ESG-related topics

Disclosures should confirm that ESG considerations are appropriately integrated into key business processes and decisions, since they are an important component of a company’s value creation story. ESG-related disclosure topics should be continuously refined in response to broader societal or specific industry needs.