As a media partner to the Asia Integrated Reporting Awards (AIRA) 2024, ESG Post spoke with Dr. Roshan Rajadurai, Managing Director of Hayleys Plantation Sector – Talawakelle Tea Estates PLC, winner of the Bronze Award for Asia’s Best Integrated Report (Integrated Thinking). In this exclusive interview, he shares how integrated reporting is shaping the company’s sustainability strategy, decision-making, and vision for the future of ESG in Asia.
Tell us why you have adopted integrated reporting for your company.
Talawakelle Tea Estates PLC adopted integrated reporting to provide a comprehensive and transparent view of its financial and non-financial performance. By integrating sustainability and financial disclosures, the company ensures that stakeholders receive a holistic understanding of value creation over time. The company follows a climate-first approach, aligning its reporting with global frameworks such as SLFRS S1 & S2 and the <IR> framework, which helps assess climate-related risks and opportunities in financial terms. Additionally, integrated reporting supports strategic decision-making, improves stakeholder trust, and aligns the company with evolving global sustainability standards, positioning it as a leader in corporate reporting excellence.
What were the key challenges you encountered while integrating financial and non-financial information into a single, coherent report, and how did your team overcome them?
One of the major challenges faced by Talawakelle Tea Estates PLC was the complexity of linking sustainability-related financial disclosures with traditional financial reporting. To address this, the company adopted SLFRS S2 guidelines, ensuring a structured and standardised approach to assessing and disclosing climate-related risks and opportunities. Another challenge was ensuring the accuracy and consistency of ESG data, particularly in areas such as greenhouse gas (GHG) emissions and environmental impact. This was resolved by implementing the GHG Protocol for emissions tracking and conducting sensitivity analyses to assess financial impacts. Additionally, maintaining a concise yet comprehensive report was difficult, but the company overcame this by integrating SLFRS disclosures with its existing reporting framework, ensuring clarity while avoiding excessive detail and the coordination among cross functional departments and estate management truly commendable. The priority given by the top management to become a leader in sustainability is the main key driving force to success by overcoming all the challenges.
What steps do you take to make your integrated report reliable and credible?
To ensure the reliability and credibility of its integrated report, Talawakelle Tea Estates PLC follows a multi-tiered verification and assurance process. The company engages Messrs. Ernst & Young for independent external assurance of both its financial statements and sustainability disclosures. Internally, the ESEG Steering Committee and Board Audit Committee review and validate the report before final board approval. Furthermore, transparency is reinforced through stakeholder engagement and materiality assessments, ensuring that only the most relevant and impactful information is disclosed. The use of science-based targets and third-party verification for ESG performance metrics further strengthens the credibility of the report, demonstrating the company’s commitment to responsible, transparent, and data-driven reporting
How has the adoption of integrated reporting influenced your internal decision-making and strategic planning processes?
Integrated reporting has significantly enhanced Talawakelle Tea Estates PLC’s internal decision-making and strategic planning by embedding climate-related financial integration into its operations. The company now assesses risks and opportunities through a sustainability lens, leading to better resource allocation and long-term investment planning. This structured reporting approach has also improved risk management, allowing for proactive decision-making based on real-time ESG data. Additionally, integrated reporting has encouraged a shift towards sustainability-driven business models, with investments in renewable energy, sustainable tea tourism, and value-added products, aligning with stakeholder expectations and global sustainability trends.
With evolving stakeholder expectations and regulatory landscapes, how do you see the future of integrated reporting in Asia, and what initiatives are you planning to stay ahead of these trends?
The future of integrated reporting in Asia will be shaped by increasing regulatory requirements and stakeholder demands for greater transparency in sustainability disclosures. More companies will be required to adopt global reporting frameworks such as IFRS, GRI, and TCFD, ensuring greater accountability. To stay ahead of these trends, Talawakelle Tea Estates PLC has introduced a digital dashboard for real-time tracking of ESG and financial performance indicators, making reporting more accessible and interactive for stakeholders. Additionally, the company is investing in AI-powered augmented reality tools to further enhance engagement and simplify complex data visualisation, ensuring it remains at the forefront of corporate reporting innovation
What do you think would be the future of integrated reporting in the next five years?
Over the next five years, integrated reporting is expected to undergo significant transformation, driven by regulatory changes, investor expectations, and technological advancements. The convergence of financial and sustainability reporting will lead to stricter compliance requirements, making it necessary for businesses to quantify and disclose climate-related financial impacts with greater precision. AI-driven analytics and automated ESG data collection will streamline reporting processes, reducing manual effort and improving accuracy. Additionally, companies failing to integrate sustainability into their financial disclosures may face increased scrutiny from investors and regulatory bodies. Talawakelle Tea Estates PLC is committed to staying ahead of these developments by continuously enhancing its reporting methodologies, leveraging digital tools, and deepening its commitment to sustainability-driven business models
What advice would you offer other organisations aspiring to reach similar levels of reporting excellence as recognised by AIRA?
For organisations seeking to achieve excellence in integrated reporting, Talawakelle Tea Estates PLC advises early adoption of internationally recognised frameworks such as SLFRS, GRI, and the <IR> framework to ensure compliance and transparency. Companies should also prioritise independent verification and third-party assurance to enhance the credibility of their reports. Leveraging digital transformation by adopting AI-powered dashboards and interactive reporting tools can make reports more engaging and accessible to stakeholders. Most importantly, organisations must embed integrated thinking into their corporate strategy, ensuring that financial and sustainability metrics drive decision-making rather than being treated as separate elements. By adopting these best practices, businesses can build stakeholder trust, improve risk management, and create long-term value in an increasingly sustainability-focused corporate landscape.
