Purpose - This paper aims to explore the linkages between IR and organisations' internal processes, specifically focusing on investigating the internal mechanism of change that can lead organisations to adopt IR disclosure and how this impacts on integrated thinking internally

Design/methodology/approach – The paper draws upon previous analysis and insights provided in the IR academic literature as well as analysing several directives, policy and framework pronouncements. The study also draws on the management accounting change literature, using it as a lens to observe early adopters’ practice. In addition, it provides detailed case studies considering the internal process of change in five early adopters of the and whether the adoption leads to internal ‘integrated thinking’. Five Italian public sector organisations are analysed, and we make use of official documents, press releases, and in-depth semi-structured interviews with the major internal actors.

Findings – The research highlights that the processes of change in organisations adopting IR is their adoption of a way of thinking, that is, integrated thinking, as a result of the process of internalisation.

Research limitations/implications
– Given the short history of IR, our sample is small, due to the small number of early adopters.

Originality/value
– The paper provides academics and policy makers with insights into the process of change to be considered while adopting the and respond to call in the IR literature for further field-based studies on the impact on internal processes. Also, the paper highlights that the European Directive on the disclosure of non-financial and diversity information (2014/95/EU) has the potential to increase environmental, social and governance disclosure amongst European companies.