How to communicate climate change in financial reports to communicate value to investors. This presentation was given by CDSB's Patrick Crawford in the context of the upcoming amendments to the UK Companies Act 2006, requiring UK quoted companies to report GHG emissions information in their Directors' reports. Referenced as a method of compliance, the Climate Change Reporting Framework can assist companies to comply and helps in going beyond to communicate reliable and consistent information to investors. Referenced as a method of compliance, the Climate Change Reporting Framework can assist companies to comply and helps in going beyond to communicate reliable and consistent information to investors. The upcoming amendment to the UK Companies Act is a great opportunity for companies to deepen their engagement with investors through a more comprehensive and meaningful Director's report.

1. @CDSBGlobal
CDSB’s
Repor-ng
Framework
Communica-ng
Climate
Change
in
Mainstream
Reports

2. @CDSBGlobal
Communicating Climate Change
“Reporting from the
principle of communication
rather than compliance."
CDSB’s
Repor-ng
Framework
in
Prac-ce

3. @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
-­‐
Connec-ng

4. @CDSBGlobal
CDSB’s
Repor-ng
Framework
•
Complements
the
CDP
process
•
Explains
how
management
should
present
informa-on
in
mainstream
annual
reports
•
Ensures
that
the
informa-on
is
relevant
and
useful
for
investors
•
Harmonises
with
exis-ng
accoun-ng
and
na-onal
standards
•
Connects
Financial
and
non-­‐
financial
informa-on
CDSB’s
Repor-ng
Framework

5. @CDSBGlobal
PuIng
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
4.
Review:
Check
accuracy
and
ensure
relevance
CDSB’s
Repor-ng
Framework
in
Prac-ce

6. @CDSBGlobal
DETERMINATION
–
Decide
what
to
report
•
Iden-fy
the
needs
of
your
investors
regarding
climate
change
•
Reflect
the
Board’s
assessment
of
the
impacts
of
climate
change
on
the
company’s
financial
performance
•
Appraise
your
current
business
model
regarding
climate
change
risks,
opportuni-es
and
challenges
•
Review
regulatory
and
compliance
obliga-ons
CDSB’s
Repor-ng
Framework
in
Prac-ce

7. @CDSBGlobal
Requirements
on
Determina-on
2.3
An
organiza*on
shall
determine
the
disclosures
to
be
made
under
the
CCRF
according
to
the
categories
of
disclosure
content
that
are
of
value
to
investors
and
a
process
that
involves
a
thorough
assessment
of
how
climate
change
has
actually
affected
or
has
the
poten*al
to
affect
the
organiza*on’s
strategic
objec*ves.
CDSB’s
Repor-ng
Framework
in
Prac-ce

8. @CDSBGlobal
PREPARATION:
Gather
clear,
consistent,
complete
informa-on
•
Provide
clarity
on
the
repor-ng
period
and
repor-ng
boundaries
•
Iden-fy
relevant
standards,
protocols
and
policies
•
Analyse
material
issues
posed
by
climate
change
•
Consider
the
relevant
-me
scales
for
past
results
and
future
prospects
•
Include
a
Statement
of
Conformance
with
CDSB’s
Repor-ng
Framework
CDSB’s
Repor-ng
Framework
in
Prac-ce

9. @CDSBGlobal
Requirements
on
Prepara-on
2.12
Disclosures
shall
be
made
on
a
consistent
basis
and
shall
include
the
informa*on
that
is
necessary
to
maximize
its
value
to
investors.
CDSB’s
Repor-ng
Framework
in
Prac-ce

10. @CDSBGlobal
PRESENTATION:
Ensure
the
disclosure
is
clear
•
Ensure
informa-on
is
relevant
and
useful
for
investor
decision
making
•
Use
simple
language,
with
enough
context
and
assump-ons
•
Discuss
the
link
between
climate
risk
and
company
prospects
•
Ensure
presenta-on
allows
easy
year-­‐on-­‐
year
comparisons
•
Segment
informa-on
to
focus
investor
analysis
•
Use
climate
change
measures
to
show
progress
against
targets
CDSB’s
Repor-ng
Framework
in
Prac-ce

11. @CDSBGlobal
Requirements
on
Presenta-on
2.26
Disclosures
shall
be
presented
and
communicated
so
as
to
make
them
useful
for
investors.
CDSB’s
Repor-ng
Framework
in
Prac-ce

12. @CDSBGlobal
REVIEW:
Check
accuracy
and
ensure
relevance
•
Check
the
content
against
the
expecta-ons
of
steps
1,
2,
and
3
•
Ensure
the
final
report
has
a
rigorous
internal
review
and
sign-­‐off
•
Alignment
other
company
communica-ons
with
the
mainstream
report
•
Share
the
report
with
selected
external
stakeholders
to
invite
their
perspec-ve
CDSB’s
Repor-ng
Framework
in
Prac-ce

13. @CDSBGlobal
Summary
of
requirements
2.30
Disclosures
shall
be
clear
and
StraighHorward
2.32
Informa*on
shall
…
explain
the
links
between
the
organiza*on’s
strategy
…
and
climate
change
impacts.
2.36
Organiza*ons
shall
disclose
performance
measures
…
to
manage
the
business
and
...
against
climate
change-­‐related
targets
2.41
Disclosures
shall
be
consistent
with
the
associated
financial
statements
of
the
organiza*on…
CDSB’s
Repor-ng
Framework
in
Prac-ce

14. @CDSBGlobal
• Download
CDSB’s
Repor-ng
Framework
and
Guidance
from
www.cdsb.net/Framework
• ATend
CDSB’s
Webinars
• Move
from
repor-ng
to
ac-on
• Communicate
with
your
Management
Team
• Communicate
with
your
investors
www.cdsb.net
Subscribe
to
our
newsleTer
by
emailing
info@cdsb.net
@CDSBGlobal
Climate
Disclosure
Standards
Board
facebook.com/CDSBGlobal
Contact:
Patrick
Crawford
Corporate
engagement
patrick.crawford@cdsb.net
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