@CDSBGlobal www.cdsb.net 1
Integra(ng	
  environmental	
  performance	
  
&	
  risk	
  in	
  mainstream	
  financial	
  rep...
@CDSBGlobal www.cdsb.net 2
Outline	
  
+  About	
  the	
  Climate	
  Disclosure	
  Standards	
  Board	
  
+  External	
  r...
@CDSBGlobal www.cdsb.net 3
About	
  the	
  Climate	
  Disclosure	
  Standards	
  Board	
  
+  CDSB	
  is	
  a	
  consor(um...
@CDSBGlobal www.cdsb.net 4
About	
  the	
  Climate	
  Disclosure	
  Standards	
  Board	
  
Who	
  we	
  are	
  
+  Support...
@CDSBGlobal www.cdsb.net 5
About	
  the	
  Climate	
  Disclosure	
  Standards	
  Board	
  
+  CommiUed	
  to	
  the	
  int...
@CDSBGlobal www.cdsb.net 6
Guidance	
  issued	
  by	
  CDSB	
  
About	
  the	
  Climate	
  Disclosure	
  Standards	
  Boar...
@CDSBGlobal www.cdsb.net 7
Guidance	
  issued	
  with	
  others	
  
About	
  the	
  Climate	
  Disclosure	
  Standards	
  ...
@CDSBGlobal www.cdsb.net 8
External	
  repor<ng	
  drivers	
  
+  Danish	
  Financial	
  Statements	
  Act	
  
+  EU	
  Ac...
@CDSBGlobal www.cdsb.net 9
External	
  repor<ng	
  drivers	
  
Proposed	
  amendments	
  to	
  EU	
  accoun9ng	
  direc9ve...
@CDSBGlobal www.cdsb.net 10
External	
  repor<ng	
  drivers	
  
+  Background	
  
+  Amendment	
  to	
  the	
  Accoun(ng	
...
@CDSBGlobal www.cdsb.net 11
+  Content:	
  
+  Policies,	
  results,	
  risks,	
  due	
  diligence	
  
+  Environmental	
 ...
@CDSBGlobal www.cdsb.net 12
External	
  repor<ng	
  drivers	
  
GHG	
  emissions	
  repor9ng	
  by	
  UK	
  quoted	
  comp...
@CDSBGlobal www.cdsb.net 13
External	
  repor<ng	
  drivers	
  
GHG	
  emissions	
  repor9ng	
  by	
  UK	
  quoted	
  comp...
@CDSBGlobal www.cdsb.net 14
External	
  repor<ng	
  drivers	
  
GHG	
  emissions	
  repor9ng	
  by	
  UK	
  quoted	
  comp...
@CDSBGlobal www.cdsb.net 15
External	
  repor<ng	
  drivers	
  
GHG	
  emissions	
  repor9ng	
  by	
  UK	
  quoted	
  comp...
@CDSBGlobal www.cdsb.net 16
External	
  repor<ng	
  drivers	
  
Preliminary	
  findings:	
  
+  Materiality	
  not	
  clear...
@CDSBGlobal www.cdsb.net 17
External	
  repor<ng	
  drivers	
  
Many	
  organisa(ons	
  may	
  prepare	
  and	
  publish	
...
@CDSBGlobal www.cdsb.net 18
Not	
  another	
  Framework?	
  
+  Prepare	
  &	
  present	
  environmental	
  
performance	
...
@CDSBGlobal www.cdsb.net 19
Not	
  another	
  Framework?	
  
+  Harmonise	
  repor(ng	
  of	
  environmental	
  risk	
  by...
@CDSBGlobal www.cdsb.net 20
Not	
  another	
  Framework?	
  
+  Focus	
  of	
  previous	
  CDSB	
  Framework	
  on	
  
cli...
@CDSBGlobal www.cdsb.net 21
Consulta9on	
  open	
  19th	
  February	
  –	
  12th	
  May	
  2014	
  
+  90	
  day	
  consul...
@CDSBGlobal www.cdsb.net 22
Summary	
  
Concluding	
  remarks	
  
+  CDSB	
  working	
  with	
  others	
  on	
  sustainabi...
@CDSBGlobal www.cdsb.net 23@CDSBGlobal
@CDSBGlobal	
  
Climate	
  Disclosure	
  Standards	
  Board	
  
facebook.com/CDSBGl...
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CDP spring workshop 2014 (CDSB Framework presentation)

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As a testament to the maturity of forest and water disclosures through the CDP information request, the Climate Disclosure Standards Board is expanding its Reporting Framework to include water and forest risk commodities. The expanded framework will provide guidance for companies in integrating this information into their mainstream corporate reports and start on the journey towards integrated reporting.

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CDP spring workshop 2014 (CDSB Framework presentation)

  1. 1. @CDSBGlobal www.cdsb.net 1 Integra(ng  environmental  performance   &  risk  in  mainstream  financial  reports     Dr  Jarlath  Molloy  CPhys   Technical  Manager,  CDSB   CDP  spring  workshop
  2. 2. @CDSBGlobal www.cdsb.net 2 Outline   +  About  the  Climate  Disclosure  Standards  Board   +  External  repor(ng  drivers   +  Not  another  Framework?   +  Consulta(on   +  Summary  
  3. 3. @CDSBGlobal www.cdsb.net 3 About  the  Climate  Disclosure  Standards  Board   +  CDSB  is  a  consor(um  of  business  and  environmental  organiza(ons   formed  at  the  2007  World  Economic  Forum’s  annual  Davos  mee(ng     +  CDP  has  provided  secretariat  support  since  incep(on  and  coordinates   day-­‐to-­‐day  ac(vi(es   Who  we  are  
  4. 4. @CDSBGlobal www.cdsb.net 4 About  the  Climate  Disclosure  Standards  Board   Who  we  are   +  Supported  by  leading  industrial  &  financial  services  companies,  NGO   representa(ves,  the  major  accoun(ng  firms,  professional  bodies,   academics  and  other  specialist  collaborators    
  5. 5. @CDSBGlobal www.cdsb.net 5 About  the  Climate  Disclosure  Standards  Board   +  CommiUed  to  the  integra(on  of  climate  change  related  informa(on   into  mainstream  corporate  repor<ng   +  Working  with  others   What  we  do  
  6. 6. @CDSBGlobal www.cdsb.net 6 Guidance  issued  by  CDSB   About  the  Climate  Disclosure  Standards  Board  
  7. 7. @CDSBGlobal www.cdsb.net 7 Guidance  issued  with  others   About  the  Climate  Disclosure  Standards  Board  
  8. 8. @CDSBGlobal www.cdsb.net 8 External  repor<ng  drivers   +  Danish  Financial  Statements  Act   +  EU  Accoun(ng  Direc(ves  (proposed)   +  French  Grenelle  II     +  South  African  King  Code   +  UK  Companies  Act   +  Find  out  more  at  cdsb.net/standards   Mandatory  repor9ng    
  9. 9. @CDSBGlobal www.cdsb.net 9 External  repor<ng  drivers   Proposed  amendments  to  EU  accoun9ng  direc9ves  
  10. 10. @CDSBGlobal www.cdsb.net 10 External  repor<ng  drivers   +  Background   +  Amendment  to  the  Accoun(ng  Direc(ve  in  2003  (enacted  in  2005)     +  Required  companies  to  report  environmental  KPI  in  their  annual  report     +  2,500  of  42,000  large  companies  in  the  EU  reported   +  Scope  (number  of  companies)   +  250  –  500  employees  minimum     +  Turnover  €  metric   +  Loca(on  of  non  financial  statement   +  Within  6  months  of  balance  sheet  date   Proposed  amendments  to  EU  accoun9ng  direc9ves  
  11. 11. @CDSBGlobal www.cdsb.net 11 +  Content:   +  Policies,  results,  risks,  due  diligence   +  Environmental  (plus  social,  employee,  human  rights,  an(-­‐corrup(on,  bribery)   +  The  use  of  renewable  and  non-­‐renewable  energy,  greenhouse  gas  emissions,   water  use  and  air  pollu(on   +  Compliance  tools  &  frameworks   +  Na(onal  /  EU  /  interna(onal  frameworks     +  EC  guidance  to  support  land  use,  water,  GHG  emissions  and  use  of  materials   +  Audit  /  verifica(on     +  Auditors  should  check  non-­‐financial  statement  or  separate  report  is  provided     +  Member  states  to  determine  if  independent  assurance  is  required  of  non-­‐ financial  statement  prepared  outside  the  report   +  Timeline   External  repor<ng  drivers   Proposed  amendments  to  EU  accoun9ng  direc9ves  
  12. 12. @CDSBGlobal www.cdsb.net 12 External  repor<ng  drivers   GHG  emissions  repor9ng  by  UK  quoted  companies   +  Approx  1,100  –  1,600  fall  under  scope   of  new  requirements   +  61  reported  from  FTSE  600  (30th  Sept   2013  –  24th  Feb  2014)   +  UK  quoted  companies  are  UK   registered  companies  with  equity   shares  (companies  trading  equity  or   equity  &  debts)  on  LSE  main  market,   EEA  regulated  market,  NYSE  or   NASDAQ  
  13. 13. @CDSBGlobal www.cdsb.net 13 External  repor<ng  drivers   GHG  emissions  repor9ng  by  UK  quoted  companies  
  14. 14. @CDSBGlobal www.cdsb.net 14 External  repor<ng  drivers   GHG  emissions  repor9ng  by  UK  quoted  companies  
  15. 15. @CDSBGlobal www.cdsb.net 15 External  repor<ng  drivers   GHG  emissions  repor9ng  by  UK  quoted  companies  
  16. 16. @CDSBGlobal www.cdsb.net 16 External  repor<ng  drivers   Preliminary  findings:   +  Materiality  not  clearly  defined  by  companies   +  No  clear  correla(on  between  materiality  assessment  and  discussion   of  risk  in  reports   +  Environmental  performance  disclosed  in  isola(on  without  narra(ve   +  Lack  of  clarity  on  boundaries  and  intensity  metrics   +  Addi(onal  guidance  for  prac((oners,  auditors,  solu(ons  providers,   etc.  could  be  useful   GHG  emissions  repor9ng  by  UK  quoted  companies  
  17. 17. @CDSBGlobal www.cdsb.net 17 External  repor<ng  drivers   Many  organisa(ons  may  prepare  and  publish  informa(on  requested  by:       This  may  expand  to:       Voluntary  repor9ng    
  18. 18. @CDSBGlobal www.cdsb.net 18 Not  another  Framework?   +  Prepare  &  present  environmental   performance  &  risk  informa(on  in   mainstream  financial  reports   +  Designed  to  allow  investors  to  assess  the   rela(onship  between  environmental   performance  &  risks  and  the  organisa(on’s   strategy  &  prospects   +  Cross  referencing  other  repor(ng   requirements  (CDP  CC4)   CDSB  Framework  focuses  on  iden9fying  environmental  risk  in  mainstream  reports  
  19. 19. @CDSBGlobal www.cdsb.net 19 Not  another  Framework?   +  Harmonise  repor(ng  of  environmental  risk  by   having  it  included  in,  or  linked  to,  an   organisa(on’s  mainstream  financial  report   +  Environmental  performance  &  risk  subject  to   the  same  Interna(onal  Financial  Repor(ng   Standards  &  assurance  requirements  as   financial  informa(on     +  Centrally  deposited  with  competent  na(onal   authority  promptly  and  publically  available     +  Working  with  regulators,  CDP  and  the  Fujitsu   Research  Ins(tute  to  develop  an  eXtensible   Business  Repor(ng  Language  (XBRL)  taxonomy     Advantages  of  mainstream  reports   Climate  change   informa(on  in  CDP  and   other  disclosures     CDSB   Framework   Annual  Report  
  20. 20. @CDSBGlobal www.cdsb.net 20 Not  another  Framework?   +  Focus  of  previous  CDSB  Framework  on   climate  change  risks  &  opportuni(es   affec(ng  an  organisa(on’s  strategy  and   financial  performance   +  Scope  has  now  expanded  into  forest   commodity  risks  and  water   +  The  expansion  of  the  CDSB  Framework  will   now  cover  79%  of  natural  capital   Aiming  for  natural  capital  repor9ng  
  21. 21. @CDSBGlobal www.cdsb.net 21 Consulta9on  open  19th  February  –  12th  May  2014   +  90  day  consulta(on  period  open   +  Online  consulta(on  planorm   +  Public  comments  promote   dialogue  among  reviewers   +  Consulta(on  planorm  will  manage   consulta(on  process   +  Available  at  cdsb.net/consulta(on       Not  another  Framework?  
  22. 22. @CDSBGlobal www.cdsb.net 22 Summary   Concluding  remarks   +  CDSB  working  with  others  on  sustainability  repor(ng   +  Disclosures  by  UK  quoted  companies  suggest  mixed  success  in   compliance  with  new  UK  Companies  Act  requirements   +  Amendments  to  EU  Accoun(ng  Direc(ves  at  cri(cal  point   +  CDSB  Framework  expanded  scope  and  aiming  for  natural  capital   +  Consulta(on  now  open,  comments  welcome  
  23. 23. @CDSBGlobal www.cdsb.net 23@CDSBGlobal @CDSBGlobal   Climate  Disclosure  Standards  Board   facebook.com/CDSBGlobal   Subscribe  to  our  newsleUer  at  cdsb.net/newsleUer   Thank  you   jarlath.molloy@cdsb.net  

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