Today, non-financial information faces the challenge of standing on equal footing with financial data in the creation and execution of corporate strategies. The goal is clear: integrating both types of information into corporate decision-making will enable companies to strike a balance between their financial and ESG objectives.
This challenge is driven by the demands of the new European ESG directive known as the CSRD, which calls for greater corporate transparency and seeks to enhance comparability between businesses. The only way to effectively analyse and compare companies is by evaluating both types of data together—that is, the data that reflects financial performance alongside the information highlighting the opportunities and risks linked to ESG factors.
In this context, technology emerges as an indispensable tool to equalise the management of both types of data, pushing corporate decision-making towards a more holistic and sustainable approach.
Differences between financial and non-financial information
On the one hand, financial information includes all the data related to financial resources, investment, or a company’s profitability. Non-financial information, on the other hand, relates to sustainability, risk management, innovation, or brand reputation.
The main distinctions between these two types of information arise from the focus and the nature of the data each one provides:
• Monetary data vs qualitative and quantitative data. Financial information focuses on monetary data, such as revenue, expenses, and cash flow. In contrast, non-financial information includes data that isn’t necessarily linked to money, such as social responsibility, environmental impact, product quality, customer satisfaction, and corporate culture.
• Accounting-based sources vs varied sources and metrics. Financial information is derived from established accounting principles and standards, such as the International Financial Reporting Standards (IFRS). Non-financial information can come from surveys, market research, sustainability reports, and more.
• Primary purpose vs complementary purpose. The purpose of financial information is to provide a clear view of a company’s financial health and performance. While this is crucial for understanding the financial state of a business, non-financial information complements it by offering a comprehensive view of the company, including its social, environmental, and governance impacts.
• Financial reports vs sustainability reports. As expected, financial information is presented in a company’s financial statements, while non-financial information is found in sustainability and corporate social responsibility (CSR) reports. Increasingly, companies are producing integrated reports that combine both financial and non-financial information into a single document, offering a complete view of the business.
Sygris’ role in managing non-financial data
In this context, Sygris technology stands out as a comprehensive solution for the efficient management of non-financial data. With over 15 years of experience specialising in this field, Sygris offers an advanced platform that allows companies to integrate, analyse, and visualise data from multiple sources and in various formats. Its ability to generate meaningful insights and support informed decision-making makes it an essential ally in the journey towards more holistic and sustainable business information management.
In short, the relationship between financial and non-financial information should be synergistic, as together they provide a more balanced understanding of a company’s performance and its standing in the market and society. However, given the differences between the two, specific technological tools are needed to manage each type of data.
With Sygris as your technology partner, the path to more efficient and future-focused data management becomes more accessible than ever.
