AUTHOR: JACK ROWLAND & EMILY BIRD
READ TIME: 6 MINS

From sustainability and governance to investment cases and business models, what are the trends shaping corporate reporting in the year ahead? Consultants Jack Rowland and Emily Bird deliver their verdict.

Market shocks, tariff wars, supply-chain chaos and a sustainability agenda that won’t stand still. Throw in AI and cybersecurity, and businesses are having to adapt like never before, rethinking how they plan, operate and communicate in the months ahead. So without further ado, here’s our take on the trends set to dominate the corporate reporting agenda in 2026.

1. The return of the investment case

Opportunistic takeovers, activist investors and wider market scrutiny mean companies are on the defensive and keen to demonstrate long-term value. And that’s why we’re seeing the re-introduction of the investment case in corporate reports.

Whether you call it the equity story or the ‘why invest’ story, nearly half of the FTSE 100 (48%) included an investment case in their annual report last year. An interesting stat when companies are simultaneously trying to cut non-mandatory content and reduce page count.

But in the current environment, it’s more important than ever. The investment case is a critical piece of content when it comes to attracting and retaining investors. It’s a one-stop-shop to showcase ‘reasons to believe’ – achievements to-date, a proven track record, a clear pathway to future growth. But what makes for a good investment case?

They come in all shapes and sizes. From side-panels in the Chief Exec or Chair’s statement to stories told across multiple pages, formats can vary. And so can content. Aviva keeps it short and sweet, including just the key reasons to invest with cross-referencing to drive readers to more detailed content within the report. It’s snappy and eye-catching, but does it leave readers wanting more?

Hikma’s approach is more fulsome, including layers of detail and proof points. While this could lead to repetition, does it matter if it’s the information the business really needs to communicate?

Convatec opts for a half-way house: key points, with a shorter narrative and proof points, as well as cross referencing to more detailed content in the report. It doesn’t use too much report real estate, but it’s detailed enough to deliver the message without losing readers’ attention.

2. The need for a business model rethink

From resisting market pressures to embracing them, could the business model once again become the beating heart of the annual report? We often talk about a report’s ‘red thread’ – a unifying theme that ties key messages and content together. But the business model is rarely included; it’s become a fairly static piece of content, often unchanged year to year. Remove the business name, though, and you’ll be hard pushed to work out which company they’re describing.

The reality is that business models aren’t static; they evolve. Supply chain issues are forcing companies to reassess their value chain, AI is changing the way businesses work, and consumer demand is putting pressure on pricing, materials and routes to market.

AstraZeneca frames how AI is transforming the pharmaceutical industry; it demonstrates meaningful, tangible reporting around AI by exploring how AI is being integrated into research and early-stage processes to reduce lead times and increase outputs.

Timber is a crucial part of Taylor Wimpey’s supply chain, but with limited suppliers and increasing usage, the housebuilder foresaw a supply shortage. Its latest report talks about how they’ve built their own timber production facility to not only mitigate supply issues but also reduce cost – a nice example of how a business has evolved in-line with external pressures.

And naturally, in alignment with CSRD disclosure and double materiality, we’ve seen more companies include value chains in their annual reports – specifically, companies reporting on material impacts, mapping risks and opportunities across their supply chain. Alignment between sustainability disclosures and the business model without duplication will be critical as CSRD and other disclosures develop.

The time for a business model rethink is long overdue. Many companies need to do a better job of explaining how they make money, what differentiates them and where their inbuilt resilience comes from.

3. Sustainability at a standstill

Sustainability reporting hit a bump in the road in 2025. The Corporate Sustainability Reporting Directive (CSRD) was put on hold following the EU Omnibus package – a proposal to simplify the standards, which has led to delayed timelines, diluted requirements and potentially pushed some companies out of scope. As a result, we saw companies hit the pause button on progress towards CSRD. And we don’t blame them.

But uncertainty isn’t confined to EU regulation. The UK has finally confirmed that the future UK Sustainability Reporting Standards (UK SRS) will align in some way, shape or form with the International Sustainability Standards Board (ISSB), but given the current track record, timelines on publishing the standards and explaining what this means in practice are not to be relied upon.

Seismic geopolitical shifts across the pond have impacted many businesses in Europe, particularly those with operations and stakeholders in the US. It’s not just climate and nature reporting that’s been affected – people and culture reporting has been shaken too, with companies reframing initiatives, removing them from the public eye or putting them on hold entirely.

Consequently, companies are waiting for the political dust to settle, for regulatory flux to stabilise, and for their peers to make the first move. We’ll be closely monitoring this space for developments.

4. Governance back in the spotlight

Updates to the Code and the recent government announcements means two things for 2026: more effective and robust governance reporting and greater opportunities to streamline content and reduce duplication.

You’re probably aware of the plans to remove the need to produce a Directors’ Report, with the government focused on reducing regulatory burden in the UK. And more strategically, we expect companies to continue to:

• Consolidate stakeholder engagement and the S172 across the strategic and governance reports, primarily moving all content to governance (16% of the FTSE 100 have already done this);
• Use cross-reference tables to help readers find regulatory requirements, key content and content found in other reports;
• Integrate content from TCFD and risk sections into governance, for example, and vice versa.

The Corporate Governance Code 2024 has introduced further changes: we’ve already seen companies describing their preparations for the revised Provision 29 statement on the effectiveness of internal controls, and this is likely to increase in annual reports covering financial years starting from 1 January 2026.

Companies are also beginning to disclose board decisions and their outcomes in the context of the company’s strategy and objectives. And although not part of the Code update, we’re seeing more detailed disclosure on board skills and experience. Investors want to understand how well-equipped boards are to provide oversight on AI, cybersecurity and other high-priority areas – and we expect to see this increasingly linked to board performance reviews, succession planning and training.

Corporate reporting is being reshaped on multiple fronts. The investment case is being reprioritised as companies fight to prove long-term value, while business models are changing to reflect real-time shifts in strategy and operations. Coupled with the Government’s Regulation Action Plan – an initiative to simplify and modernise UK corporate reporting – 2026 looks set to be defining year for those responsible for reporting. For more insights on key trends, and how to ensure your report is as robust and engaging as it can be, get in touch with Naomi Wallis.