28. How to make data valuation part of annual reporting

Annual reports have long served as the definitive statement of a company's financial health, but they have historically overlooked one of the most valuable assets modern businesses possess: their data. As organisations increasingly depend on data to drive decisions, develop products, and serve customers, leaving this asset entirely off the page becomes harder to justify. Integrating data valuation into annual reporting is not just a financial exercise — it is a signal to investors, partners, and regulators that your business understands what drives its value in the digital age.

The first step toward embedding data valuation into annual reporting is establishing a consistent methodology. Companies need to choose an approach — whether based on cost, market comparables, or income potential — and apply it with the same rigour they would bring to any other financial estimate. This requires close collaboration between finance teams, data governance leads, and senior management. Once a repeatable process is in place, teams can track how the value of key datasets changes from one reporting period to the next, turning valuation into a living metric rather than a one-off exercise.

Beyond internal consistency, companies must consider how to communicate data value in a way that resonates with external audiences. Investors are increasingly asking about data assets during due diligence, and auditors are beginning to scrutinise how firms account for intangible value. Presenting a clear, well-documented data valuation in supplementary notes or management commentary — even where accounting standards do not yet require it — builds credibility and demonstrates forward-thinking governance. Some firms have already begun including data maturity assessments and value ranges alongside traditional financial metrics, setting a precedent that others in their sectors are likely to follow.

Making data valuation a regular part of annual reporting requires investment in process and expertise, but the returns are tangible. Boards gain a clearer picture of where value is concentrated in the business. Management teams can make better decisions about where to invest in data quality and protection. Stakeholders gain confidence that the organisation is being transparent about the full range of assets it holds. As standards evolve and more companies adopt this practice, those who began early will hold a significant advantage — in investor relations, in regulatory readiness, and in their ability to price data fairly in any future transaction.