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CDSB Framework consultation briefing webinar


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<b>Find find out about the key aspects of the consultation draft of the expanded CDSB Framework and how to respond.</b>

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.


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, CDSB

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CDSB Framework consultation briefing webinar

  1. 1. @CDSBGlobal 1 Briefing  webinar  on  CDSB  Framework   consulta8on   Wednesday  19th  March  2014  
  2. 2. @CDSBGlobal 2 Outline   +  Introduc8on   +  About  the  Climate  Disclosure  Standards  Board   +  Framework  2.0   +  Consulta8on   +  Q  &  A  
  3. 3. @CDSBGlobal 3 Introduc.on   Speakers   Patrick  Crawford   Corporate  Engagement   Manager   Dr  Jarlath  Molloy   Technical  Manager   Michael  Zimonyi   Project  Officer  
  4. 4. @CDSBGlobal 4 Financial  statements  capture  less  than  20%  of   corporate  risks  (source:  Eurosif,  IIRC)   Increasing  ESG  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  
  5. 5. @CDSBGlobal 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   Repor*ng  landscape  -­‐  mandatory  repor*ng    
  6. 6. @CDSBGlobal 6 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    
  7. 7. @CDSBGlobal 7 Guidance  issued  with  others   About  the  Climate  Disclosure  Standards  Board  
  8. 8. @CDSBGlobal 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  
  9. 9. @CDSBGlobal 9 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  
  10. 10. @CDSBGlobal 10 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    
  11. 11. @CDSBGlobal 11 CDSB’s  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 Framework   About  the  Climate  Disclosure  Standards  Board  
  12. 12. @CDSBGlobal 12 Guidance  issued  by  CDSB   About  the  Climate  Disclosure  Standards  Board  
  13. 13. @CDSBGlobal 13 A  stepping  stone  to  producing  integrated  reports     CDP  Informa.on   request   CDSB  Guidance  CDSB’s   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  
  14. 14. @CDSBGlobal 14 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  
  15. 15. @CDSBGlobal 15 Consulta*on  on  CDSB  Framework   About  the  Climate  Disclosure  Standards  Board  
  16. 16. @CDSBGlobal 16 Part  II   Introduc*on   Dr  Jarlath  Molloy   Technical  Manager  
  17. 17. @CDSBGlobal 17 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?  
  18. 18. @CDSBGlobal 18 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  
  19. 19. @CDSBGlobal 19 Framework  2.0   Update  to  CDSB  Framework  
  20. 20. @CDSBGlobal 20 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  
  21. 21. @CDSBGlobal 21 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  
  22. 22. @CDSBGlobal 22 Framework  2.0   +  Framework  now  links  and  references  to  other  repor8ng   methodologies,  requirements  and  principles   Main  changes  -­‐  cross  references  
  23. 23. @CDSBGlobal 23 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  
  24. 24. @CDSBGlobal 24 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    
  25. 25. @CDSBGlobal 25 Framework  2.0   +  About  the  CDSB  Framework   +  Framework  influences   +  List  of  requirements   Sec*on  I:  Introduc*on  
  26. 26. @CDSBGlobal 26 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  
  27. 27. @CDSBGlobal 27 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  
  28. 28. @CDSBGlobal 28 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  
  29. 29. @CDSBGlobal 29 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  
  30. 30. @CDSBGlobal 30 Framework  2.0   +  Fossil  fuel  energy  resources   +  Organisa8onal  boundaries   +  Shorter  consulta8on  period  in  parallel  with  draq  Framework   Discussion  papers  
  31. 31. @CDSBGlobal 31 Introduc*on   Michael  Zimonyi   Project  Officer   Part  III  
  32. 32. @CDSBGlobal 32 Overview   +  Available  at       +  90  day  consulta8on  period  open       +  Online  consulta8on  plarorm            (offline  also  available)   Consulta.on   Deadline:  12th  May  2014  
  33. 33. @CDSBGlobal 33 Consulta.on   How  do  I  respond?  
  34. 34. @CDSBGlobal 34 Consulta.on   Online   +  Encourge  discussion  &  debate   +  Available  at         +  Online  consulta8on  plarorm            (offline  also  available)  
  35. 35. @CDSBGlobal 35 Consulta.on   Online   Demo  
  36. 36. @CDSBGlobal 36 Consulta.on   Summary   +  Download  consulta8on  draq  from   +  Comment  on  draq   +  Consulta8on  ques8ons   Deadline:  12th  May  2014  
  37. 37. @CDSBGlobal 37 Consulta.on   Due  process   +  Submissions  &  summary  published   +  Reviewed  by  Technical  Working   Group   +  Signed  off  by  Board     Images:  Macomb  Paynes,  ILRI,  kenmainr  /  flickr  
  38. 38. @CDSBGlobal 38 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    
  39. 39. @CDSBGlobal 39 Thank  you  for  your  interest   Ques*ons?   Patrick  Crawford   Corporate  Engagement   Manager   Dr  Jarlath  Molloy   Technical  Manager   Michael  Zimonyi   Project  Officer  
  40. 40. @CDSBGlobal 40@CDSBGlobal @CDSBGlobal   Climate  Disclosure  Standards  Board   Subscribe  to  our  newsleuer  at   Contact  us   Thank  you