cdsb framework consultation briefing webinar
DESCRIPTION
Find find out about the key aspects of the consultation draft of the expanded CDSB Framework and how to respond. The report 'Natural Capital at Risk – the top 100 externalities of business’ commissioned by the Natural Capital Coalition shows that environmental externality costs can be broken down into greenhouse gas emissions 38%, water 25% and land use 24%, of which 16% is directly related to forests risk commodities. CDSB’s expanded Framework, out for consultation is expanding beyond climate change to include more information on natural capital, namely forest risk commodities and water. The Framework is designed to help organizations prepare and present environmental information in mainstream reports for the benefit of investors. Information prepared in accordance with the CDSB Framework is designed to allow investors to assess the relationship between specific environmental matters and the organization’s strategy, performance and prospects. Through the provision of robust environmental information, CDSB hopes to encourage analysis and decision-making by investors that recognizes the dependence of economic and financial stability on a stable and healthy environment. Agenda Introduction to CDSB – Patrick Crawford, Corporate Engagement, CDSB CDSB Framework consultation draft – Dr Jarlath Molloy, Technical Manager, CDSB How to respond: the consultation process – Michael Zimonyi, Project Officer, CDSBTRANSCRIPT
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Briefing webinar on CDSB Framework consulta8on
Wednesday 19th March 2014
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Outline
+ Introduc8on
+ About the Climate Disclosure Standards Board
+ Framework 2.0
+ Consulta8on
+ Q & A
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Introduc.on
Speakers
Patrick Crawford Corporate Engagement Manager
Dr Jarlath Molloy Technical Manager
Michael Zimonyi Project Officer
@CDSBGlobal www.cdsb.net 4
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
@CDSBGlobal www.cdsb.net 5
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
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About the Climate Disclosure Standards Board
Many organisa8ons may prepare and publish informa8on requested by an increasing number of bodies:
Repor*ng landscape -‐ voluntary repor*ng
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Guidance issued with others
About the Climate Disclosure Standards Board
@CDSBGlobal www.cdsb.net 8
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?
About the Climate Disclosure Standards Board
Climate change informa8on in CDP and
other disclosures
CDSB
Framework
Annual Report
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About the Climate Disclosure Standards Board
+ 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
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About the Climate Disclosure Standards Board
Who we are
+ Supported by leading industrial & financial services companies, NGO representa8ves, the major accoun8ng firms, professional bodies, academics and other specialist collaborators
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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
About the Climate Disclosure Standards Board
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Guidance issued by CDSB
About the Climate Disclosure Standards Board
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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
About the Climate Disclosure Standards Board
CDSB’s Framework used in ADDITION to the CDP disclosure
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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
About the Climate Disclosure Standards Board
@CDSBGlobal www.cdsb.net 15
Consulta*on on CDSB Framework
About the Climate Disclosure Standards Board
@CDSBGlobal www.cdsb.net 16
Part II
Introduc*on
Dr Jarlath Molloy Technical Manager
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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?
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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
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Framework 2.0
Update to CDSB Framework
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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
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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
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Framework 2.0
+ Framework now links and references to other repor8ng methodologies, requirements and principles
Main changes -‐ cross references
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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
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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
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Framework 2.0
+ About the CDSB Framework
+ Framework influences
+ List of requirements
Sec*on I: Introduc*on
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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
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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
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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
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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
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Framework 2.0
+ Fossil fuel energy resources
+ Organisa8onal boundaries
+ Shorter consulta8on period in parallel with draq Framework
Discussion papers
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Introduc*on
Michael Zimonyi Project Officer
Part III
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Overview
+ Available at cdsb.net/consulta8on
+ 90 day consulta8on period open + Online consulta8on plarorm (offline also available)
Consulta.on
Deadline: 12th May 2014
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Consulta.on
How do I respond?
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Consulta.on
Online
+ Encourge discussion & debate
+ Available at cdsb.net/consulta8on + Online consulta8on plarorm (offline also available)
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Consulta.on
Online
Demo
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Consulta.on
Summary
+ Download consulta8on draq from cdsb.net/consulta8on
+ Comment on draq
+ Consulta8on ques8ons
Deadline: 12th May 2014
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Consulta.on
Due process
+ Submissions & summary published
+ Reviewed by Technical Working Group
+ Signed off by Board
Images: Macomb Paynes, ILRI, kenmainr / flickr
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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
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Thank you for your interest
Ques*ons?
Patrick Crawford Corporate Engagement Manager
Dr Jarlath Molloy Technical Manager
Michael Zimonyi Project Officer
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Climate Disclosure Standards Board
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