CDSB Framework consultation briefing webinar

@CDSBGlobal www.cdsb.net 1

Briefing webinar on CDSB Framework consulta8on

Wednesday 19th March 2014


Outline

+  Introduc8on

+  About the Climate Disclosure Standards Board

+  Framework 2.0

+  Consulta8on

+  Q & A


Introduc.on

Speakers

Patrick Crawford Corporate Engagement Manager

Dr Jarlath Molloy Technical Manager

Michael Zimonyi Project Officer


Financial statements capture less than 20% of corporate risks (source: Eurosif, IIRC)

Increasing ESG repor.ng requirements – UK, France, EU, South Africa, US?

Increasing requirement to integrate ESG informa8on with financial repor8ng

Increasing impact of climate change on decisions and ac8ons by management, investors & other

stakeholders

About the Climate Disclosure Standards Board



+  Danish Financial Statements Act

+  EU Accoun8ng Direc8ves (proposed)

+  French Grenelle II

+  South African King Code

+  UK Companies Act

+  Find out more at cdsb.net/standards

Repor*ng landscape -‐ mandatory repor*ng



Many organisa8ons may prepare and publish informa8on requested by an increasing number of bodies:

Repor*ng landscape -‐ voluntary repor*ng


Guidance issued with others



The integra*on of climate change-‐related informa*on into mainstream corporate repor*ng.

Objec8ve

When?

January 2007: Launched at World Economic Forum, Davos, Switzerland, as a special project of CDP

Members •  Main accountants,

ACCA, ICAEW … •  GHG NGOs e.g. GHG

management ins8tute, Carbon Tracker, TCR

•  Investors, e.g. Investor Group on Climate Change, Ceres

•  Business, e.g. WRI, WBCSD, BT, WEF

Standardize climate change-‐related (natural capital) repor8ng for fair and transparent markets

Why?


Climate change informa8on in CDP and

other disclosures

CDSB

Framework

Annual Report



+  CDSB is a consor8um of business and environmental organiza8ons formed at the 2007 World Economic Forum’s annual Davos mee8ng

+  CDP has provided secretariat support since incep8on and coordinates day-‐to-‐day ac8vi8es

Who we are



Who we are

+  Supported by leading industrial & financial services companies, NGO representa8ves, the major accoun8ng firms, professional bodies, academics and other specialist collaborators


CDSB’s Repor.ng Framework +  Complements the CDP process

+  Communicates management’s assessment of natural capital impacts in annual reports

+  Connects Financial and non-‐financial informa8on; harmonizing with exis8ng accoun8ng and na8onal standards

+  Conformance with the Framework prepares companies for compliance with current and proposed regula8ons

+  Download CDSB’s Repor8ng Framework and Guidance from www.cdsb.net/Framework



Guidance issued by CDSB



A stepping stone to producing integrated reports

CDP Informa.on request

CDSB Guidance CDSB’s Repor.ng Framework

THE DATA THE LENS THE HELP VISIBILITY

Mainstream Report


CDSB’s Framework used in ADDITION to the CDP disclosure


Natural capital

+  CDP has expanded into forest risk commodi8es and water, with informa8on requests in these two programmes

+  Natural capital is a core part of the IIRC’s six capitals

+  Regulators are increasingly concerned with environmental impact, in par8cular in the EU, but also elsewhere

+  Climate change, forests and water accounts for 79% of natural capital by value



Consulta*on on CDSB Framework



Part II

Introduc*on



Framework 2.0

+  CDSB Framework focuses on iden8fying environmental risk and repor8ng it in mainstream reports

+  Framework helps prac88oners prepare & present environmental performance & risk informa8on in mainstream financial reports

+  Designed to allow investors to assess the rela8onship between environmental performance & risks and the organisa8on’s strategy & prospects

+  Benefit for those repor8ng to CDP (CC informa8on request Q4)

Why mainstream reports?


Framework 2.0

+  Harmonise repor8ng of environmental risk by having it included in, or linked to, an organisa8on’s mainstream financial report

+  Environmental performance & risk subject to the same Interna8onal Financial Repor8ng Standards & assurance requirements as financial informa8on

+  Centrally deposited with competent na8onal authority promptly and publically available. Working with regulators, CDP and the Fujitsu Research Ins8tute to develop an eXtensible Business Repor8ng Language (XBRL) taxonomy

+  Growing interest among policymakers of non-‐financial repor8ng

Advantages of mainstream reports


Framework 2.0

Update to CDSB Framework


Framework 2.0

+  Focus of previous CDSB Framework on climate change risks & opportuni8es affec8ng an organisa8on’s strategy and financial performance

+  Scope has now expanded into forest commodity risks (i.e. drivers of deforesta8on) and water

+  The expansion of the CDSB Framework will now cover 79% of natural capital

Main changes -‐ scope


Framework 2.0

+  Structure has been reorganised

+  Other issues may be added in future

+  Framework introduc8on text outlines context and highlights key changes between edi8on 1.1 and 2.0

+  Requirements & guidance listed

+  Requirements aligned with CDP informa8on requests

Main changes -‐ others


Framework 2.0

+  Framework now links and references to other repor8ng methodologies, requirements and principles

Main changes -‐ cross references


Framework 2.0

+  Consulta8on ques8ons

+  Sec8on I: Introduc8on

+  Sec8on II: What to report

+  Sec8on III: About your report

+  Sec8on IV: How to report

+  Sec8on V: Supplementary guidance

Structure and outline


Framework 2.0

The consulta8on ques8ons cover the following:

+  Objec8ves and scope;

+  Form of repor8ng,

+  Content of requirements and type of environmental informa8on disclosed, minimum repor8ng requirements;

+  Language & terminology;

+  Metrics & indicators;

+  Assurance & verifica8on

Consulta*on ques*ons


Framework 2.0

+  About the CDSB Framework

+  Framework influences

+  List of requirements

Sec*on I: Introduc*on


Framework 2.0

Part A: Informa8on to be used for assessing the current state of the organisa8on

+  REQs 01-‐04

Part B: Informa8on to be used for assessing the business implica8ons of the informa8on reported above

+  REQs 05-‐07

Part C: Informa8on to be use for assessing the organisa8on’s strategic response to the informa8on reported above

+  REQs 08-‐11

Sec*on II: What to report


Framework 2.0

Requirements and guidance about the organisa8on’s environmental informa8on repor8ng prac8ces

+  REQ-‐12: Boundaries

+  REQ-‐13: Basis for prepara8on and presenta8on

+  REQ-‐14: Repor8ng policies

+  REQ-‐15: Frequency of repor8ng

+  REQ-‐16: Restatements

+  REQ-‐17: Compliance

+  REQ-‐18: Assurance

Sec*on III: About your report


Framework 2.0

The requirements and guidance designed to ensure that environmental informa8on in mainstream reports is useful to investors, is correct and complete and is based on criteria that are suitable for conduc8ng assurance ac8vi8es

+  REQ-‐19: Relevant

+  REQ-‐20: Faithfully represented

+  REQ-‐21: Connected with other informa8on

+  REQ-‐22: Consistency of disclosures

+  REQ-‐23: Presenta8on and communica8on

+  REQ-‐24: Materiality

Sec*on IV: How to report


Framework 2.0

+  A number of disclosure tools, standards, methodologies and guidance are referenced

+  SG 01 (A) Methodologies, tools and guidance to prepare environmental results

+  SG 01 (B) Characteris8cs of useful key performance indicators

+  SG 02 Risks & opportuni8es

Sec*on V: Supplementary guidance


Framework 2.0

+  Fossil fuel energy resources

+  Organisa8onal boundaries

+  Shorter consulta8on period in parallel with draq Framework

Discussion papers


Introduc*on


Part III


Overview

+  Available at cdsb.net/consulta8on

+  90 day consulta8on period open +  Online consulta8on plarorm (offline also available)

Consulta.on

Deadline: 12th May 2014


Consulta.on

How do I respond?


Consulta.on

Online

+  Encourge discussion & debate

+  Available at cdsb.net/consulta8on +  Online consulta8on plarorm (offline also available)


Consulta.on

Online

Demo


Consulta.on

Summary

+  Download consulta8on draq from cdsb.net/consulta8on

+  Comment on draq

+  Consulta8on ques8ons

Deadline: 12th May 2014


Consulta.on

Due process

+  Submissions & summary published

+  Reviewed by Technical Working Group

+  Signed off by Board

Images: Macomb Paynes, ILRI, kenmainr / flickr


Summary

Concluding remarks

+  CDSB working with others on sustainability repor8ng

+  CDSB Framework expanded scope and aiming for natural capital

+  Framework consulta8on now open, comments welcome

+  Discussion papers to follow, comments also welcome

+  This work has been made possible with the kind support of the Velux Founda8ons


Thank you for your interest

Ques*ons?

Patrick Crawford Corporate Engagement Manager



@CDSBGlobal www.cdsb.net 40 @CDSBGlobal

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Climate Disclosure Standards Board

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CDSB Framework consultation briefing webinar

Investor Relations

Transcript of CDSB Framework consultation briefing webinar