Everything’s in there. Except readers.

This article appeared in the 27th issue of The Reporting Times (in German)

Hundreds of pages, four different languages, months of approvals – and tumbleweed traffic numbers. Annual reports are produced like prestige projects, and read – if at all – at speed or by machines. It’s time we asked ourselves the uncomfortable question: who is all this for?

When I speak with corporate publishers or investor relations experts, I often hear the same comment: “Our annual report is top-notch, but it’s rarely read.” And then comes the mantra: compliance requirements fulfilled, content checked, tone approved. The result? A report that does everything by the book – and communicates nothing.

Duty done, target missed

The idea that annual reports are primarily read by analysts, investors and banks is a persistent one. However, according to a study by the Vienna University of Economics and Business, only about 30% of annual reports’ readership is in finance. The rest are journalists, job applicants, NGOs and employees – stakeholders who usually aren’t considered the target audience at all.

The result? Many reports are simply unreadable to their actual readers. These reports want to offer something for everyone: mandatory publication, PR tool, corporate image brochure. From a linguistic point of view, this balancing act leads to self-sabotage. The texts are correct, but cumbersome. Complete, yet incomprehensible. And by the third paragraph at the latest, even the most sympathetic readers throw up their hands.

The solution is straightforward, if uncomfortable: having the courage to choose. To simplify. To take a stand. If you want to say everything to everyone, you won’t say anything to anyone – and you’ll never reach your actual readers.

From KPI to clarity

Long gone are the days when an annual report was just a balance sheet with explanatory text. Now, it is a strategic statement. The authors set the tone for the entire company, both internally and externally, and explain complex terms such as “one-time non-operating expenses” or “Scope 3 emissions” – ideally in such a way that even outsiders to the reporting world can still grasp the concept.

Clarity is not a nice-to-have. It is the foundation for content, language and structure. Communicating better means prioritising better – being reader-friendly, structured and relevant. Annual reports shouldn’t say everything; they should say the right thing. We’ve had the tools for this at our disposal for a long time: glossaries, style guides and AI-powered solutions can not only help you translate and write better, but can also tailor your output to your corporate wording and target audience. Assuming, of course, that you let them.

More relevance, less ritual

Storytelling should not be a bonus, but a way to ensure you fulfil both your reporting obligations and your duty to the reader. If you don’t have the internal resources to handle this yourself, it’s best to seek support. Relevance arises where there is a clear concept structuring the report, from the EBITDA to the cash flow statement. Even if not every sentence has been polished by hand. Annual reports are not dead. But they are silent as the grave when they are not written for their audience. If you want to be heard, you don’t have to write louder. Just better.

Cover image via Pexels