CDSB Framework 101

June 2015 | Tweet @CDSBGlobal

Introduction to the CDSB FrameworkAdding value to your existing environmental disclosure


Climate Disclosure Standards Board

Introduction to the CDSB Framework 2


We are committed to advancing and aligning the global mainstream corporate reporting model to equate natural capital with financial capital.


CDSB Framework in a nutshell


Environmental information

(CDP, GRI, SASB, ISO 26000, UNGC CEO Water Mandate)

CDSB Framework

Annual Report / Integrated Report(MD&A, Form 10-K/20-F, Lagebericht, Form 56-1)

cdsb.net/Framework


The CDSB Framework

• Builds on CDSB Climate Change Reporting Framework (2012)

• 7 guiding principles

• 12 reporting requirements

• Reference detailed guidance on climate, forests, water

• Alignment with CDP, GRI, SASB and others to support inclusion in mainstream reports

• Covers all the environmental related requirements prescribed by current and upcoming legislation (eg: EU Non-Financial Reporting Directive)

for reporting environmental information & natural capital

Introduction to the CDSB Framework

cdsb.net/Framework

5


Principles

P1 Environmental information shall be prepared applying the principles of relevance and materiality

P2 Disclosures shall be faithfully represented

P3 Disclosures shall be connected with other information in the mainstream report

P4 Disclosures shall be consistent and comparable

P5 Disclosures shall be clear and understandable

P6 Disclosures shall be verifiable

P7 Disclosures shall be forward looking


HOW to report

cdsb.net/Framework


Relevance and materiality

7

Relevant financial information is capable of making a difference in the decisions made by users, with predictive value, confirmatory value or both.

Information is material if omitting it or misstating it could influence decisions that users make on the basis of financial information about a specific reporting entity. Materiality is an entity-specific aspect of relevance based on the nature or magnitude, or both, of the items to which the information relates in the context of an individual entity’s financial report.

P1 Environmental information shall be prepared applying the principles of relevance and materiality

Environmental information is material if:

• The environmental impacts or results it describes are, due to their size and nature, expected to have a significant positive or negative effect on the organisation’s current, past or future financial condition and operational results and its ability to execute its strategy; or

• Omitting, misstating or misinterpreting it could influence decisions that users of mainstream reports make about the organisation.

IFRS

CDSB


cdsb.net/Framework


Requirements

REQ-01 Management’s environmental

policies, strategy and targets

REQ-02 Risks and opportunities

REQ-03 Governance

REQ-04 Sources of environmental impact

REQ-05 Performance and comparative

analysis

REQ-06 Outlook

REQ-07 Organisational boundary

REQ-08 Reporting policies

REQ-09 Reporting period

REQ-10 Restatements

REQ-11 Conformance

REQ-12 Assurance


WHAT to report

cdsb.net/Framework


Policies, strategy and targets

9

F8.1 Does your organization have a policy that recognizes the role of reducing deforestation

in climate change mitigation and sets out clear goals and guidelines for action?

F8.2 Has your organization made a commitment to reduce or remove deforestation and

forest degradation from your direct operations and/or supply chain?

F8.4 Do you have commodity specific sustainability policies?

W6.2 Is water management integrated into your business strategy? Please choose the

option(s) that best explain how water has positively and negatively influenced your business

strategy

W6.3 Does your organization have a water policy that sets out clear goals and guidelines for

action? Please select the content that best describes your water policy

REQ-1 Disclosures shall report management’s environmental policies, strategy and targets,

including the indicators, plans and timelines used to assess performance.

CDP

CDSB


cdsb.net/Framework





CDSB Framework for reporting

environmental information & natural

captial

REQ-01

CDP Information Request (2015)CC2.2, CC2.3, CC3.1, CC3.2, CC4.1, CC7.1, CC14.4, F8.1, F8.2, F8.3, F8.4, F9.1, F9.2, F9.3, F9.4, F9.5, F9.6, F10.5,

W6.2, W6.3, W7.1, W8.1, W9.1

CDSB Climate Change Reporting

Framework Edition 1.1§ 2.8-2.9

GRI (G4) Sustainability Reporting

Guidelinespp 8, 12, G4-1, G4-2, G4-15, G4-16, G4-27, G4-EN13, G4-EN29, G4-EN31, G4-EN33, G4-DMA

IIRC <IR> Framework § 3.3-3.5, 3.10-3.16, 4.27-4.29, 4.53-4.56

ISO 26000 4.2, 4.3, 6.2.3.2, 6.5.5.2.1, 6.5.5.2.2, 6.5.6.2, 7.3.2.1, 7.4.2, 7.4.3, 7.5.3 (Box 15)

OECD Guidelines for Multinational

Enterprises Part II (A5, A8, A12-15, B2), and VI (1-8)

UN Principles for Responsible Investment P1, P2, P3, P4, P5, P6

UN Global Compact Principles P7, P8, P9

UNGC CEO Water Mandate Section 5 pp 35-39, 60-76

Australian Water Accounting Standards

Board (WAS1)§ 56

The German Council for Sustainable

Development (RNE) Sustainability CodeClauses 1, 3, 4, 7, 12, 19

South Africa King Code III P3.4, 5.2, 9.2

Danish Financial Statements Act 2008 Article 99a para 1, 2 1), 2 2), 3

EU NFR Directive 2014/95/EU 6

EU Amendments to Accounting Directive

2013/34/EUArticle 19a 1(b, c, e) and Article 29a 1(b, c, e)

French Grenelle II 2010 Article 75 & 225

UK Companies Act 2006 (Strategic Report

and Directors’ Report) Regulations 2013P2 4A 414C (7) (b)


Objectives of the Framework

11

• Align with the objective of financial reporting

• Encourage standardization of environmental & natural capital reporting

• Clear, concise and comparable presentation

• Connect environmental performance with overall strategy, performance and

prospects

• Simplify the reporting process

• Support compliance

• Support assurance activities


cdsb.net/Framework


As investors we find it instrumental to be able to

evaluate and compare companies on their sustainability

performance.

We hope that others will get behind the CDSB

Framework so that it can evolve to become the

standard the investor community needs.

- Marcos Mancini, Director Sustainable Banking,

Banorte


Fiduciary duty & climate change disclosure

With the support of

Join at:

cdsb.net/Fiduciary


Contact

Michael Zimonyi

E: [email protected] T: +44 (0)203 818 3939www.cdsb.net

CDSB Framework 101

Investor Relations

Transcript of CDSB Framework 101