integrating climate change information into mainstream corporate reports, americas focus
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@CDSBGlobal
Ben$Thompson$Program'Manager'
Sustainable'Business'Autodesk'
Patrick$Crawford$Corporate'Engagement'
CDSB'
Lois$Guthrie$Execu<ve'Director'
CDSB'
Amy$Pawlicki$Director'
Business'Repor<ng,'Assurance'&'Advisory'Services'and'XBRL'
AICPA'
Thursday'17th'October'2013
Ben$Richards$Head'of'
Sustainability'Radley'Yeldar'
Jim$Coburn$Senior'Manager'Investor'Programs'
Ceres'
Integra<ng'Climate'Change'Informa<on'
into'Mainstream'Corporate'Reports'
@CDSBGlobal
Integra<ng'climate'change'informa<on'into'mainstream'corporate'reports'
Tuesday'3rd'December'2013'–'CDSB'Americas'Webinar
Patrick$Crawford$Corporate'Engagement'
@CDSBGlobal
Financial'statements'capture'less'than'20%'of'corporate'risks'(source:'Eurosif,'IIRC)'
Increasing'ESG'repor?ng'requirements'–'UK,'EU,'US?'
Increasing'requirement'to'integrate'ESG'informa<on'with'financial'repor<ng'
Increasing'impact'of'climate'change'on'decisions'and'ac<ons'by'management,'investors'&'other'
stakeholders'
Connec<ng'Non_Financial'and'Financial'Informa<on'
@CDSBGlobal
The$integra+on$of$climate$change1related$informa+on$into$mainstream$corporate$repor+ng.$
Objec<ve'
''When?'
January'2007:'Launched'at'World'Economic'Forum,'Davos,'Switzerland,'as'a'special'project'of'CDP'
Climate'change'informa<on'in'CDP'
disclosure'
'CDSB’s'
Framework'
Annual'Report'
''Members'• Main'accountants,'
ACCA,'ICAEW'…'• GHG'NGOs'e.g.'GHG'
management'ins<tute,'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)'repor<ng'for'fair'and'transparent'markets'
''Why?'
The'need'for'CDSB’s'Repor<ng'Framework'
@CDSBGlobal
CDSB’s$Repor?ng$Framework$'•'Complements$the'CDP'process'
•'Communicates'management’s'assessment'of'climate'change'in'annual'reports'
•''Connects'Financial'and'non_financial'informa<on;''harmonizing'with'exis<ng'accoun<ng'and'na<onal'standards'
•'Conformance'with'the'Framework'prepares'companies'for'compliance'with'current'and'proposed'regula<ons'
•'Download'CDSB’s'Repor<ng'Framework'and'Guidance'from'www.cdsb.net/Framework$
CDSB’s'Repor<ng'Framework'
@CDSBGlobal
Communicating Climate Change “Reporting from the principle of communication rather than compliance.“ Hermes EOS Investors
CDSB’s'Repor<ng'Framework'in'Prac<ce'
@CDSBGlobal
A$stepping$stone$to$producing$integrated$reports$$
CDP$Informa?on$request$
CDSB$Guidance$CDSB’s$Repor?ng$Framework$
THE$DATA$ THE$LENS$ THE$HELP$ VISIBILITY$Mainstream$
Report$
CDSB’s'Repor<ng'Framework'in'Prac<ce'
CDSB’s$Framework$used$in$ADDITION$to$the$CDP$disclosure$
@CDSBGlobal
CDSB’s'Repor<ng'Framework'in'Prac<ce
CDSB’s$Framework$provides$guidance$on$essen?al$topics:$
+ Execu?ve$statement$(2.8,$4.6)$
+ Boundaries$(2.20,$4.23\4.27)$+ Materiality$(2.8\2.10,$4.6)$
+ Connec?ng$with$business$performance$(2.41,$4.6\4.8)$
+ Future$outlook$(2.16,$4.14–4.15)$
@CDSBGlobal
Puang$it$into$prac?ce$$1.$Determina?on:$Decide'what'to'report''2.$Prepara?on:$Gather'clear,'consistent,'complete'Informa<on''3.$Presenta?on:$Ensure'disclosure'is'clear'and'material''4.$Review:$Check'accuracy'and'ensure'relevance'
CDSB’s'Repor<ng'Framework'in'Prac<ce'
@CDSBGlobal
CDSB’s$Repor?ng$Framework$'•'Complements$the'CDP'process'
•'Communicates'management’s'assessment'of'climate'change'in'annual'reports'
•''Connects'Financial'and'non_financial'informa<on;''harmonizing'with'exis<ng'accoun<ng'and'na<onal'standards'
•'Conformance'with'the'Framework'prepares'companies'for'compliance'with'current'and'proposed'regula<ons'
•'Download'CDSB’s'Repor<ng'Framework'and'Guidance'from'www.cdsb.net/Framework$
CDSB’s'Repor<ng'Framework'
© 2013 Autodesk
Corporate Perspective: Integrated Reporting Ben Thompson Sustainable Business Program Manager
CDSB
© 2013 Autodesk
Leader in 3D design software From solving today’s business problems to tackling tomorrow’s global challenges, millions of professionals use Autodesk® solutions to imagine, design, and create a better world.
© 2013 Autodesk
BREAKTHROUGH INNOVATION:
TECHNOLOGY:
A better world will require:
Support and accelerate breakthrough ideas to design and create a better world
Powerful simulation and analysis tools that reveal consequences of design decisions, thereby enabling users to be more thoughtful and optimize decisions.
UNDERSTANDING:
Advance understanding of, and commitment to designing within limits of the planet.
BUSINESS PRACTICES:
Align Autodesk business practices and decision-making with our better world vision.
© 2013 Autodesk
BETTER WORLD Process
People
Product
BETTER WORLD
ALIGN OUR BUSINESS TO OUR MISSION
© 2013 Autodesk
Integrated Reporting is a Clear, Beneficial Trend
1. Tell a clearer story of company performance
2. Engage with investors on new opportunities
3. Better manage natural capital
4. Standardize and streamline the reporting process
© 2013 Autodesk
Align Sustainability with CFO’s Process & Language
1. Accounting 2. Decision-making 3. Reporting
© 2013 Autodesk
It’s Early, but we’re making progress.
! Many efforts to standardize.
! Questions still exist about creating liability.
! Focus on materiality is essential.
! Keep dialogue open with CFO and IR.
© 2013 Autodesk, Inc. All rights reserved.
Autodesk is a registered trademark of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product and services offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.
Preparation Amy Pawlicki Director – Business Reporting, Assurance & Advisory Services AICPA
CDSB Americas Webinar Integrating Climate Change Information into Mainstream Corporate Reports December 3, 2013
American Institute of CPAs®
" The AICPA Assurance Services Executive Committee Sustainability Reporting Advisory Board was established to better understand companies’ perspectives on sustainability reporting and assurance
" The Advisory Board is comprised of company
representatives across various industries that have produced or are in the process of producing sustainability reports
Understanding Current and Evolving Practice
20
American Institute of CPAs®
" Examples of preparation practices currently in use
" The focus is more on accuracy of disclosed data rather than completeness (i.e., certain matters may be excluded from reports if their accuracy or relevance is questioned)
" Monte Carlo simulation is used to determine and present the level of uncertainty that exists for some data
" The level of processes and controls in place for information that is assured is more robust and SOX-like
" Materiality is determined following guidelines from various frameworks such as CDP and GRI
21
Understanding Current Practice
American Institute of CPAs®
" Examples of preparation practices currently in use:
" Information disclosed is reviewed by the legal team
" Anything posted to the company website, including sustainability information, is reviewed by the Disclosure Committee
" Cross-discipline (sustainability/finance) checks are performed to ensure any relevant Sustainability information has not been omitted from the 10-K
22
Understanding Current Practice (cont’d)
American Institute of CPAs®
" Common themes/trends in sustainability reporting: " Finance and sustainability functions beginning to work
together, e.g., by performing cross-discipline checks
" Global stakeholder engagement calls being instituted (similar to analyst calls, but for various stakeholders)
" Those charged with governance are beginning to take an increasing interest in sustainability reporting
" Companies beginning to seek external assurance on their sustainability reports or portions thereof
" Reports moving from printed to online-only reports
" Annual reporting moving to quarterly or more real-time reporting
23
Insights on Evolving Practices
American Institute of CPAs®
" Common challenges in current reporting practices:
" Numerous requests to complete surveys/questionnaires strain company time and resources
" The existence of multiple sustainability reporting frameworks can be confusing to navigate
" Silos and insufficient connectivity between operating and business units
" Manual process, challenge to find and implement appropriate processes and systems
" Challenges in applying traditional report preparation practices to nonfinancial information (e.g. materiality, internal controls and assurance)
24
Preparation Challenges
American Institute of CPAs®
CGMA Report: From Insight to Impact, Unlocking Opportunities in Big Data
American Institute of CPAs®
" The International Integrated Reporting Council (IIRC) defines Integrated Thinking as: " the active consideration by an organization of the
relationships between its various operating and functional units and the capitals that the organization uses or affects.
" Applying Integrated Thinking to sustainability reporting " The more that integrated thinking is embedded into an
organization’s activities, the more naturally will the connectivity of information flow into management reporting, analysis and decision-making. It also leads to better integration of the information systems that support internal and external reporting and communication, including preparation of the integrated report.
26
The Role of Integrated Thinking in Sustainability Report Preparation
©Radley Yeldar Ltd 27
Learning from the leaders Effective climate change storytelling Ben Richards, Radley Yeldar 3 December 2013 Say hello via Twitter @radleyyeldar
©Radley Yeldar Ltd 28
A bit about Radley Yeldar
We help the world’s bravest, brightest and best fulfil their potential
Strategy Identity Culture Performance Communications
©Radley Yeldar Ltd 31
The power of storytelling Why storytelling matters
Working out your organisation’s climate change story will help to make you credible and distinctive
...in turn making it easier for
stakeholders to trust you and to become advocates for your
approach
...which helps drive performance
©Radley Yeldar Ltd 32
What’s in a good story? The six C’s of effective climate storytelling
1. Clear
2. Credible
3. Committed
4. Compelling
5. Collaborative
6. Connected
©Radley Yeldar Ltd 33
Who’s doing a good job? Johnson and Johnson – clear
©Radley Yeldar Ltd 34
Who’s doing a good job? European example GSK – clear
©Radley Yeldar Ltd 35
Who’s doing a good job? Johnson and Johnson – credible
©Radley Yeldar Ltd 36
Who’s doing a good job? SAP – connected
©Radley Yeldar Ltd 37
Who’s doing a good job? HP – committed
©Radley Yeldar Ltd 38
Who’s doing a good job? European example Unilever – committed
©Radley Yeldar Ltd 39
Who’s doing a good job? Home Depot – compelling
©Radley Yeldar Ltd 40
Who’s doing a good job? Cisco Systems – collaborative
©Radley Yeldar Ltd 41
1. Keep it simple
2. Join it up
3. Show progress
Learning from the leaders Key takeaways…
©Radley Yeldar Ltd 42
For more best practice insight… Radley Yeldar’s research
Visit ry.com for more publications.
©Radley Yeldar Ltd 43
Stay in touch
Contact details: Ben Richards b.richards@ry.com Radley Yeldar Ltd 24 Charlotte Road London EC2A 3PB T 020 7033 0700 F 020 7033 0800 www.ry.com
$Investor$Perspec?ves:$Integra?ng$Climate$Change$
Informa?on$into$Mainstream$Repor?ng$$
Jim'Coburn,'Senior'Manager,'Investor'Programs'coburn@ceres.org'''617_247_0700'ext.'119'
www.ceres.org''
44'
Overview'
• 'State'of'integrated'repor<ng'• 'Investor'perspec<ves'on'material'climate'issues'
• 'Investor'use'of'climate'disclosure'
• 'Advantages'of'integrated'repor<ng'&'use'of'the'CDSB'repor<ng'framework'
45'
Key$reports'
46'
VerDate Nov<24>2008 12:57 Feb 05, 2010 Jkt 220001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\08FER2.SGM 08FER2WR
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Monday,
February 8, 2010
Part III
Securities and Exchange Commission 17 CFR Parts 211, 231 and 241 Commission Guidance Regarding Disclosure Related to Climate Change; Final Rule
CERES BLUEPRINT FOR SUSTAINABLE INVESTINGJune 2013
Authored byPeter Ellsworth, CeresKirsten Snow Spalding, Ceres
THE 21ST CENTURYINVESTOR:
DISCLOSING CLIMATERISKS & OPPORTUNITIESIN SEC FILINGSA GUIDE FOR CORPORATE EXECUTIVES,ATTORNEYS & DIRECTORS
FEATURING INVESTOR EXPECTATIONS FOR QUALITY DISCLOSURE
February 2011
Authored byJim CoburnSean H. DonahueSuriya Jayanti
State$of$integrated$repor?ng:$S&P$500'
Source:$Peter$DeSimone,$IRRC$Ins?tute,$Sustainable$Investments$Ins?tute,$Integrated)Financial)&)Sustainability)Repor7ng)in)the)U.S.,)April)2013$
47'
Integrated Financial and Sustainability Reporting in the United States 5
Report Findings in Numbers (S&P 500)
499 The number of companies making a sustainability disclosure in a finan‐cial filing or linking financial perfor‐mance to a sustainability initiative
74 The percentage of companies
placing a dollar figure on a sustainability‐related topic.
7 Number of companies with an
integrated financial and sustainability report
68 Percent mentioning environmental
management
43 Percent linking executive pay to
sustainability criteria
67 Percent talking about employment
65
Percent with a sustainability‐related monetary estimate in a Form 10‐K
66 Percent discussing climate change
76 Percent with sustainability reporting
63 Percent disclosing on hazardous
waste
19 Percent with a sustainability‐related
dollar figure in an annual report
54 Percent talking about product formulations
36 Percent using GRI
49 Percent noting
waste management initiatives
29 Percent making the financial con‐nection in a sustainability report
39 Percent looking at water use
37 Percent with race and/or gender as
criteria for director nominations
21 Percent reviewing ethics
11 Percent placing a dollar figure on
hazardous waste
15 Percent discussing human rights
60 Percent disclosing sustainability‐
related contingencies or liabilities
Integrated Financial and Sustainability Reporting in the United States 5
Report Findings in Numbers (S&P 500)
499 The number of companies making a sustainability disclosure in a finan‐cial filing or linking financial perfor‐mance to a sustainability initiative
74 The percentage of companies
placing a dollar figure on a sustainability‐related topic.
7 Number of companies with an
integrated financial and sustainability report
68 Percent mentioning environmental
management
43 Percent linking executive pay to
sustainability criteria
67 Percent talking about employment
65
Percent with a sustainability‐related monetary estimate in a Form 10‐K
66 Percent discussing climate change
76 Percent with sustainability reporting
63 Percent disclosing on hazardous
waste
19 Percent with a sustainability‐related
dollar figure in an annual report
54 Percent talking about product formulations
36 Percent using GRI
49 Percent noting
waste management initiatives
29 Percent making the financial con‐nection in a sustainability report
39 Percent looking at water use
37 Percent with race and/or gender as
criteria for director nominations
21 Percent reviewing ethics
11 Percent placing a dollar figure on
hazardous waste
15 Percent discussing human rights
60 Percent disclosing sustainability‐
related contingencies or liabilities
$Investor$perspec?ves$on$material$sustainability$issues$
48'
THE 21ST CENTURY INVESTOR: CERES BLUEPRINT FOR SUSTAINABLE INVESTINGCeres Blueprint for Sustainable Investing 12
21ST CENTURY INVESTOR: CERES BLUEPRINTFOR SUSTAINABLE INVESTING
INVESTMENT GOVERNANCE!
Step 1: Develop Investment BeliefsThe Board of Trustees, or highest levelof fiduciary authority, will establishcore investment principles that includea commitment to sustainableinvestment.
Step 2: Implement Trustee OversightThe Board of Trustees, or highest levelof fiduciary authority, will establishoversight of sustainable investmentinitiatives and accountability forimplementation.
INVESTMENT PRACTICES!
Step 3: Assess MaterialityThe trustees, in collaboration withinvestment and governance staff,consultants, managers, and sector & issue experts will identify thesustainability issues and risk factorsthat are material to the fund.
Step 4: Review Asset AllocationThe trustees, in collaboration with theCIO, investment staff, consultants,managers and sector & issue expertswill evaluate asset allocation modelsfor material sustainability risks.
Step 5: Integrate ESG intoInvestment StrategyTrustees, investment staff, consultantsand managers will select sustainabilitystrategies best suited to the fund’s risk-adjusted return objectives.
Step 6: Incorporate ESG intoManager SelectionTrustees, investment and governancestaff and consultants will requiresustainable investment and engagementexpertise in manager and consultantprocurement.
Step 7: Evaluate ManagerPerformanceTrustees, investment and governancestaff and consultants will monitormanager performance againstsustainable investment expectations.
Step 10: Integrate SustainabilityCriteria Across All Assets Classesand StrategiesTrustees, investment and governancestaff and consultants will assess ESGrisks and opportunities in every assetclass and incorporate sustainabilitycriteria into all investment strategies.
ASSET STEWARDSHIP !
Step 8: Align Active Ownershipand Proxy Voting WithSustainable Investment GoalsTrustees, investment and governancestaff, and investment managers willestablish engagement strategies andproxy voting guidelines consistent withsustainable investment goals.
Step 9: Support Policies andMarket Initiatives that Promote a Sustainable Global EconomyAsset owners & investment managerswill support market & policy initiativesthat advance sustainable investmentinitiatives and promote a sustainableglobal economy.
$Investor$perspec?ves$on$material$climate$issues$• 'Physical'risks.'SEC:'“Possible'consequences'of'severe'weather'could'include'.'.'.'Indirect'financial'and'opera<onal'impacts'from'disrup<ons'to'the'opera<ons'of'major'customers'or'suppliers'from'severe'weather,'such'as'hurricanes'or'floods.”'
• 'Regulatory'risks.'SEC:'“Costs'required'to'improve'facili<es'.'.'comply'with'regulatory'limits'or'to'mi<gate'the'financial'consequences'of'a'‘cap'and'trade’'regime.”'
• 'Indirect'risks/opportuni<es:'SEC:'�Increased'demand'for'goods'that'result'in'lower'emissions'than'compe<ng'products..'.'.'Increased'demand'for'genera<on'and'transmission'of'energy'from'alterna<ve'energy'sources.�'
49'
$Investor$perspec?ves$on$material$climate$issues$• 'Align'mandatory'and'voluntary'repor<ng:'i.e.,'CDP'ques<onnaire,'risks'&'opportuni<es—ques<ons'5'&'6:'
50'
Method Comment
Dedicated budget forenergy efficiency
ACE has a dedicated budget for energy efficiency and carbon reduction activities.Specifically, the budget is used for energy audits/assessments and facility alterationimprovements/alterations with an ROI of <10years.
Lower return oninvestment (ROI)specification
ACE has a dedicated budget for energy efficiency and carbon reduction activities.Specifically, the budget is used for energy audits/assessments and facility alterationimprovements/alterations with an ROI of <10years.
Page: 4. Communication
4.1 Have you published information about your company’s response to climate change and GHG emissions performancefor this reporting year in places other than in your CDP response? If so, please attach the publication(s)
Publication Page/Sectionreference Attach the document
In mainstream financialreports (complete) E-1 & E-2
https://www.cdproject.net/sites/2013/20/21320/Investor CDP2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/ACE Limited Annual Report 2012.pdf
In voluntarycommunications(complete)
https://www.cdproject.net/sites/2013/20/21320/Investor CDP2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/ACE-Group-2012-Environmental-Report.pdf
In voluntarycommunications(complete)
https://www.cdproject.net/sites/2013/20/21320/Investor CDP2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/ACE Green.pdf
In voluntarycommunications(complete)
Page 5
Module: Risks and Opportunities [Investor]
Page: 5. Climate Change Risks
5.1Have you identified any climate change risks (current or future) that have the potential to generate a substantive change inyour business operations, revenue or expenditure? Tick all that apply
Risks driven by changes in regulationRisks driven by changes in physical climate parameters
5.1aPlease describe your risks driven by changes in regulation
ID Risk driver Description Potentialimpact Timeframe Direct/
Indirect Likelihood Magnitudeof impact
RR01 Air pollutionlimits
ACE is among thelargest and mostadvanced globalunderwriters ofenvironmentalliabilities andpollution risk, withACE EnvironmentalRisk units in NorthAmerica, Europe,Asia and LatinAmerica. Typicalcover includes
Other:Increasedprobabilisticriskexposure
1-5 years Indirect(Client) Very likely Medium-high
$Investor$perspec?ves$on$material$climate$issues$• Use'developing'sector_specific'standards:'i.e.,'SASB’s'health'
care'sector'standards'(released'July'’13).''Excerpt:'
51'
© 2012 SASB™ CONFIDENTIAL & PROPRIETARY
Biotechnology and Pharmaceuticals
Medical Equipment and Supplies Health Care Delivery Health Care
Distribution Managed Care
Envi
ronm
enta
lC
apita
l
� Energy, water and waste efficiency
� Energy, water and waste efficiency
� Energy, water and waste efficiency
� Climate change impacts on human health
� Fuel efficiency� Climate change
impacts on human health
Soci
al C
apita
l � Safety of clinical trial participants
� Access to Medicines� Counterfeit drugs
� Ethical marketing
� Product safety
� Affordability and fairpricing
� Ethical marketing
� Quality of care and patient satisfaction
� Access for low-income patients
� Patient privacy and electronic health records
� Product safety
� Counterfeit drugs� Access to coverage
� Customer privacy and technology standards
Hum
an
Cap
ital � Employee recruitment,
development and retention
� Employee health and safety
� Employee recruitment, development and retention
Inno
vatio
n
� Affordability and fair pricing
� Drug safety and side-effects
� Product design and lifecycle management
� Product lifecycle management
� Improved outcomes
Gov
erna
nce � Corruption and bribery
� Manufacturing and supply chain quality management
� Corruption and bribery
� Manufacturing and supply chain quality management
� Fraud and unnecessaryprocedures
� Pricing and billing transparency
� Corruption and bribery � Plan performance� Pricing and billing
transparency
Sustainability issues for Health CareResults of our evidence-based research and vetting processes
© 2012 SASB™ CONFIDENTIAL & PROPRIETARY
Biotechnology and Pharmaceuticals
Medical Equipment and Supplies Health Care Delivery Health Care
Distribution Managed Care
Envi
ronm
enta
lC
apita
l
� Energy, water and waste efficiency
� Energy, water and waste efficiency
� Energy, water and waste efficiency
� Climate change impacts on human health
� Fuel efficiency� Climate change
impacts on human health
Soci
al C
apita
l � Safety of clinical trial participants
� Access to Medicines� Counterfeit drugs
� Ethical marketing
� Product safety
� Affordability and fairpricing
� Ethical marketing
� Quality of care and patient satisfaction
� Access for low-income patients
� Patient privacy and electronic health records
� Product safety
� Counterfeit drugs� Access to coverage
� Customer privacy and technology standards
Hum
an
Cap
ital � Employee recruitment,
development and retention
� Employee health and safety
� Employee recruitment, development and retention
Inno
vatio
n
� Affordability and fair pricing
� Drug safety and side-effects
� Product design and lifecycle management
� Product lifecycle management
� Improved outcomes
Gov
erna
nce � Corruption and bribery
� Manufacturing and supply chain quality management
� Corruption and bribery
� Manufacturing and supply chain quality management
� Fraud and unnecessaryprocedures
� Pricing and billing transparency
� Corruption and bribery � Plan performance� Pricing and billing
transparency
Sustainability issues for Health CareResults of our evidence-based research and vetting processes
Investor$use$of$disclosure$in$investment$decisions'• 'Investors'use'sustainability'informa<on'from'GRI'reports,'SEC'filings,'CDP,'news,'reports,'ESG'consultants'and'vendors,'etc.'
• 'Excep<ng'engagements,'hard'to'generalize'about'how'data'is'used.''Significant'U.S.'ac<ons'focused'in'some'of'the'following'areas:'
• $CalPERS:'Targeted'investments,'procurement,'vo<ng'and'engagement'
• 'CalPERS’'SEC'priori<es'include'improving'climate'risk'disclosure,'use'of'SASB'standards,'collabora<on'with'other'federal'agencies'to'analyze'material'sustainability'issues.'
• $TIAA\CREF:'Inves<ng,'ac<ve'ownership,'promo<ng'ESG'transparency,'climate'change'
• 'Climate'change'ini<a<ves:'global'real'estate'portolio,'private'markets'team,'social'choice'strategies,'ac<ve'ownership'(esp.'steel,'airlines,'real'estate,'retailers)'' 52'
Enhanced$repor?ng$and$use$of$CDSB$framework$• 'Sustainability'leadership:'be'beuer'prepared'for'rapidly'changing'sustainability'demands;'help'shape'integrated'repor<ng'
• 'Encourages'companies'to'hone'in'on'key'material'issues'for'repor<ng'&'for'risk'management'
• 'Improves'collabora<on'between'sustainability,'accoun<ng'&'legal'teams'
• 'CDSB'framework'helps'investors'understand'key'issues'companies'face:'
53'
Climate Disclosure Standards Board (CDSB)
20
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�� WKH�VWUDWHJLF�LPSOLFDWLRQV�RI�climate change for resources DQG�LQQRYDWLRQ��VXFK�DV�WKH�GHYHORSPHQW�RI�QHZ�WHFKQRORJLHV��EUDQG�YDOXH�DQG�UHSXWDWLRQ��FRQVXPHU�FRQ¿GHQFH�DQG�HPSOR\HH�OR\DOW\��DQG
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• 'Advantages'of'enhanced'repor<ng'in'mainstream'filings:'Ceres’'Disclosing'Climate'Risks'&'Opportuni<es'in'SEC'Filings'
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54'
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