Entergy produces and distribute electrical power primarily in the southern U.S. The company began issuing an integrated report in 2013 when they also moved to a web-based presentation format (here’s a great history about their move to integrated reporting)
The report is available through a link on its investor relations home page and has been optimized for reading on line with video content that is not available in the downloadable document version.
Company Chairman and CEO explains the perspective of the report in the introduction to this year’s report:
Two years ago, we set a clear vision for our company: We Power Life; and a clear mission: create sustainable value for our customers, owners, employees and communities. In 2015, we made clear progress on numerous operational and regulatory priorities that are critical to creating sustainable value. Employees across our company pulled together as one team to achieve an aggressive to-do list and respond to multiple challenges. It was a terrific effort that demonstrates our commitment to aim high and act in the long-term interests of all our stakeholders.
(I added the bold to highlight their emphasis on long-term value creation)
Here’s a quick summary of the report:
| Title | 2015 Integrated Report |
| Theme | Clear vision, clear progress |
| Report Type | Serves as primary report but is not full financial report |
| Contents | Company, Workplace, Governance,Financial Highlights |
| Number of Pages | 79 |
| Value Creation | Narrative + Graphic |
| Value Distribution | Narrative |
| Stakeholder Identification | Narrative |
| Standards | GRI Application Level A, GAAP, GHG |
| Assurance | Deloitte & Touche for financial |
The Capitals
One of the core concepts of integrated reporting is the inclusion of information about the six key categories of capital. This vocabulary only appears in one place, the graphic shown below which mentions the different categories of capital as inputs to the company’s value creation process and describes the outputs with narrative.
While there are single-year metrics throughout the narrative, there is also a Key Performance Indicators section (buried, not sure why) toward the end of the report that highlights five years of data for twenty KPI’s depicted graphically such as here:
This KPI section touches on all the categories of capital even though it doesn’t classify them as capitals:
| Coverage of the Capitals | None | Narrative | Single Year
Metrics |
Multi-Year
Metrics |
| Financial Capital | X | |||
| Fixed Capital | X | |||
| Digital Capital | X* | |||
| Human Capital | X | |||
| Relationship Capital | X | |||
| Natural Capital | X |
*Note: Although the company does not specifically talk about digital or intellectual capital, they do provide a number of performance indicators related to their core operations and processes which is an ouput of digital capital.
Graphic Summaries
Then at the very end of the report, there are graphic info sheets (that seem ideal to use as a stand-alone handout) for five of the company’s key geographies.
Key metrics are also highlighted throughout the report narrative using this tagging system seen at the right.
Here’s an example of this kind of entry:
Materiality
I haven’t been analyzing materiality in this report series. But Entergy has an interesting review of their materiality approach that is worth highlighting. They focus on economic, environmental and social issues that “impact our ability to create value for our stakeholders.” This section is very clearly written identifying the issue and the reason that it is important. Here’s an example:
One of the fascinating things about integrated reporting is the great diversity of approaches. Entergy’s approach is a great addition to current practices.
Entergy is cited along with Clorox and ArcelorMittal in our latest Smarter-Companies Brief entitled Systems Thinking Using a Multi-Capital Model.
