Accounting for the natural resources a company uses and affects offers a more complete picture of the organisation’s true health and value. However, bringing natural capital information into mainstream reporting and communicating it clearly to mainstream investors isn't straightforward. This webinar introduces the CDSB Framework’s guiding principles and requirements to help you communicate the value you create from natural capital with the same level of rigour that's used for all the other information in your mainstream report.

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Communicating value creation
through natural capital to the
mainstream
CDSB Framework for reporting
natural capital and environmental
information

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Agenda
1. About us
2. Mainstream reporting
3. The CDSB Framework
4. One more thing
5. Questions
2
Jane Stevensen
Managing Director
Lois Guthrie
Founding Director
Luke Blower
Technical Officer

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About us

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Climate Disclosure Standards Board
4

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We are committedto
advancingand aligning
the globalmainstream
corporatereporting
modelto equatenatural
capital with financial
capital.

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Mainstream
Reporting

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The mainstream report
• Annual reporting packagesin which organisations are required to deliver
their audited financial results under the corporate, complianceor securities
laws of the country in which they operate
• Publicly available
• Provide information to existingand prospective investors about the
financial position and financial performance of the organisation
• Differ internationally
• Generally contain financial statements, other financial reporting including
governance statements and management commentary
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Definitions

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The mainstream report
1. Financialstatements
2. Governance disclosures
3. Management commentary
4. Other information
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Elements

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Influences
And many others…..
The mainstream report

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The mainstream report
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Language

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The mainstream report
• Standards
• Metrics
• Characterisation
• Layout
• Home
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Financial reporting Non-financial reporting
• Explosion of mandatory /
voluntary reporting provisions
• Confused and complex
landscape
• Difficulty understanding what
and how to disclose
• National and regional variations
• Different audiences – investors,
customers, stakeholders

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The mainstream report
1. A wide rangeof factors determinethe value of an organisation–
readers want to know aboutthe company’s performanceso they
can assess its value
2. Some of the factors are easy to account for like cash, inventory,
land, machinery, buildings
3. Some are not like relationships with suppliers and customers,
natural resources etc.
4. A business’valueis determinedby all forms of “capital”
5. Investors arebeginningto take account of all types of capital in
determiningperformance– they want to knowthe full story
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Why environmental information?

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The CDSB
Framework

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The CDSB Framework
• 7 guiding principles
• 12 reporting requirements
• Position paper on relevance &
materiality, organisational boundaries
and assurance
• Reference guidance on climate,
forests, water
• Alignment with CDP, GRI, SASB and
others to support inclusion in
mainstream reports
• Covers all the environmental related
requirementsprescribed by current
and upcoming legislation (eg: EU
Non-Financial Reporting Directive)
for reporting environmental information & natural capital
cdsb.net/Framework
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Objectives of the Framework
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• Align with the objective of financial reporting
• Encourage standardization of environmental & natural capital reporting
• Clear, concise and comparable presentation
• Connect environmental performance with overall strategy, performance and
prospects
• Simplify the reporting process
• Support compliance
• Support assurance activities
cdsb.net/Framework

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CDSB Framework 101
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Environmental information
(CDP, GRI, SASB, ISO 26000, UNGC CEO Water Mandate)
CDSB
Framework
Annual Report / Integrated Report
(MD&A, Form 10-K/20-F, Lagebericht, Form 56-1)
cdsb.net/Framework

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Principles
P1 Environmental information shall be prepared applying the principles of
relevance and materiality
P2 Disclosures shall be faithfully represented
P3 Disclosures shall be connected with other informationin the mainstream
report
P4 Disclosures shall be consistent and comparable
P5 Disclosures shall be clear and understandable
P6 Disclosures shall be verifiable
P7 Disclosures shall be forward looking
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How to report
cdsb.net/Framework

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Requirements
REQ-01 Management’s environmental
policies, strategyand targets
REQ-02 Risks andopportunities
REQ-03 Governance
REQ-04 Sources of environmental impact
REQ-05 Performanceand comparative
analysis
REQ-06 Outlook
REQ-07 Organisational boundary
REQ-08 Reporting policies
REQ-09 Reporting period
REQ-10 Restatements
REQ-11 Conformance
REQ-12 Assurance
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What to report
cdsb.net/Framework

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Policies, strategy and targets
Purpose: Tofacilitatea complete
assessment by readers of the rationale,
quality andefficacy of the organisation’s
environmentalpolicies, strategy and
targets andan understandingof the
indicators and timelines usedto manage
and assess performance.
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Disclosures shall report management’s environmental policies, strategy and targets,
including the indicators, plans and timelines used to assess performance.

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Policies, strategy and targets
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Policies, strategy and targets
CDSB Framework for reporting
environmental information & natural
captial
REQ-01
CDP Information Request (2015)
CC2.2, CC2.3, CC3.1, CC3.2, CC4.1, CC7.1, CC14.4, F8.1, F8.2, F8.3, F8.4, F9.1, F9.2, F9.3, F9.4, F9.5, F9.6, F10.5,
W6.2, W6.3, W7.1, W8.1, W9.1
CDSB Climate Change Reporting
Framework Edition 1.1
§ 2.8-2.9
GRI (G4) Sustainability Reporting
Guidelines
pp 8, 12, G4-1, G4-2, G4-15, G4-16, G4-27, G4-EN13, G4-EN29, G4-EN31, G4-EN33, G4-DMA
IIRC <IR> Framework § 3.3-3.5, 3.10-3.16, 4.27-4.29, 4.53-4.56
ISO 26000 4.2, 4.3, 6.2.3.2, 6.5.5.2.1, 6.5.5.2.2, 6.5.6.2, 7.3.2.1, 7.4.2, 7.4.3, 7.5.3 (Box 15)
OECD Guidelines for Multinational
Enterprises
Part II (A5, A8, A12-15, B2), and VI (1-8)
UN Principles for Responsible Investment P1, P2, P3, P4, P5, P6
UN Global Compact Principles P7, P8, P9
UNGC CEO Water Mandate Section 5 pp 35-39, 60-76
Australian Water Accounting Standards
Board (WAS1)
§ 56
The German Council for Sustainable
Development (RNE) Sustainability Code
Clauses 1, 3, 4, 7, 12, 19
South Africa King Code III P3.4, 5.2, 9.2
Danish Financial Statements Act 2008 Article 99a para 1, 2 1), 2 2), 3
EU NFR Directive 2014/95/EU 6
EU Amendments to Accounting Directive
2013/34/EU
Article 19a 1(b, c, e) and Article 29a 1(b, c, e)
French Grenelle II 2010 Article 75 & 225
UK Companies Act 2006 (Strategic Report
and Directors’ Report) Regulations 2013
P2 4A 414C (7) (b)

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Policies, strategy and targets
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F8.1 Does your organization have a policy that recognizes the role of reducing deforestation
in climate change mitigation and sets out clear goals and guidelines for action?
F8.2 Has your organization made a commitment to reduce or remove deforestation and
forest degradation from your direct operations and/or supply chain?
F8.4 Do you have commodity specific sustainability policies?
W6.2 Is water management integrated into your business strategy? Please choose the
option(s) that best explain how water has positively and negatively influenced your business
strategy
W6.3 Does your organization have a water policy that sets out clear goals and guidelines for
action? Please select the content that best describes your water policy
REQ-1 Disclosures shall report management’s environmental policies, strategy and targets,
including the indicators, plans and timelines used to assess performance.
CDP
CDSB
cdsb.net/Framework

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Policies, strategy
and targets
Barratt
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• Related to the
organisation’s overall
policies, strategy and
operational performance
• Targets, timeline and key
performance indicators
• Engagement with suppliers
• Working with others
(RSPB)

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Sources of environmental impacts
Purpose: Toreport, usingqualitativeand
quantitativeresults,the degreeto which
material sources of environmental impact
have arisenoverthe reportingperiodand
to cite methodologies usedfor the
preparationof results.
Sources of environmental impact are the
activities of and outputs fromthe
organisationthat actually or potentially
influenceor contributeto environmental
impacts
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Quantitative and qualitative results, together with the methodologies used to
prepare them, shall be reported toreflect material sources of environmental impact.

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Environmental
impacts
Antofagasta
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• Why impacts occur
• How they may affect the
company’s business
• Methodology
• Policies and measures
undertaken by the company
to address these impacts and
improve on associated
performance

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Performance and comparative analysis
Purpose: Tocommunicateto readers
how the organisation’s environmental
results compare withresults for previous
reportingperiods andwith performance
targets set in previous periods.
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Disclosures shall include an analysis of the information disclosed compared with
any performance targets set and with results reported in previous periods.

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Performance and
comparative
analysis
National Grid
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• Analyses the main trends
• Cross-refers to targets,
baseline and other criteria
• Explains significant changes
• Methodology

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Conformance
Purpose: Toinformreaders about
whether, andto what extent, the
principles and requirements of the CDSB
Framework havebeenapplied.
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Disclosures shall include a statement of conformance with the
CDSB Framework.

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Conformance
Praxair
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• Identify information that is
incomplete and uncertain
• Alignment to financial
reporting
• Scope
• Assurance

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One more
thing…

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Be the first
Looking for companiesto:
• Provide highqualityinformationtoyour
currentandpotential investors
• Report naturalcapital inlinewith
IntegratedReporting
CDSB will:
• Providefeedbackonthecompany’s
reportingsofar togiverecommendations
on how toimproveit furtherduringthe
project
• Answer questions&provideguidance
duringthepreparationof thereport
• Promote report as casestudy
Get in touch at info@cdsb.net.
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Looking for ambitious companies to showcase the Framework

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Fiduciary duty & climate change disclosure
With the support of
Join at:
cdsb.net/Fiduciary

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Questions?
- Mainstream reporting
- The CDSB Framework
- Principles
- Requirements
- Fiduciaryduty
- Pilot programme
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Thank you
E:secretariat@cdsb.net
T:+44 (0)2038183939
www.cdsb.net