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How does CDP's model drive change
The document discusses how CDP (Carbon Disclosure Project) and the Climate Disclosure Standards Board (CDSB) drive change toward sustainable business practices and climate-related financial reporting. CDP collects environmental data from over 5,000 companies on behalf of investors and purchasers, and scores companies' responses to incentivize emission reductions, target setting, and other climate-friendly actions. The CDSB framework provides guidance for companies to report high-quality, decision-useful environmental information to investors and stakeholders. It aims to make climate-related risks and opportunities more transparent within mainstream annual reports. Both CDP and CDSB work to integrate climate considerations into core business strategies and financial decision-making.
How does CDP's model drive change
- 1. www.cdp.net | @CDP Howdoes CDP & the Climate Disclosure Standards Board drive change?
- 2. www.cdp.net | @CDP {{ {{-Vision, CDP A global economic system that operates within sustainable environmental boundaries and prevents dangerous climate change
- 3. www.cdp.net | @CDP Over5,000 companies and suppliers Multiple stakeholders, one request Information Signatory investors Purchasing organizations
- 4. www.cdp.net | @CDPPage 4
- 5. @CDSBGlobal The Climate DisclosureStandards Board
- 6. @CDSBGlobal Environmental information CDSB Framework Annual Report cdsb.net/Framework Whatis the CDSB Reporting Framework?
- 7. @CDSBGlobal Adding value cdsb.net/Framework HOW –CDSB Framework + Relevance & materiality + Faithful representation + Connected with other information + Consistent and comparable + Clear and understandable + Verifiable + Forward looking WHAT – source: CDP response + Strategic analysis + Governance + Policies + Risks + Opportunities + Greenhouse gas emissions
- 8. www.cdp.net | @CDP CDPimpact Page 8
- 9. www.cdp.net | @CDP CDPimpact Page 9
- 10. www.cdp.net | @CDP CDPimpact Page 10
- 11. www.cdp.net | @CDP Actionsincentivised through scoring { Board-level responsibility for climate change { Staff incentives { Integration with business strategy { Integrated communication { Risk assessment and management { Implementation of GHG emissions reduction projects { Setting GHG emissions reduction targets { Emissions intensity reduction { Data verification
- 12. www.cdp.net | @CDP CDP– a public good with many users Page 12 CDP data Investors Companies ResearchersSuppliers Policy makers
- 13. www.cdp.net | @CDPPage 13 A growing movement
- 14. www.cdp.net | @CDP 2014CDP Responses in Asia Climate Change: 1,050 Investor & Supply Chain Page 14
- 15. www.cdp.net | @CDP SupportingSDGs by catalyzing action Page 15
- 16. @CDSBGlobal “We are agroup of companies and investors sharing a concern that financial markets do not yet take sufficient account of climate-related corporate performance, risks and opportunities relevant to future shareholder value because of a lack of comprehensive and comparable information in “mainstream” corporate reports for the investment community. This information gap undermines the efficiency by which markets are able to allocate capital to its most productive uses over the medium to long term — a crucial enabler of strong and sustainable economic growth. For this reason, we have decided to produce and make use of such information on a common basis through the Climate Change Reporting Framework, or other comparable framework, whether or not required by current regulation. We take this step primarily out of a sense of fiduciary responsibility…” Fiduciary duty & climate change disclosure cdsb.net/fiduciary
- 17. @CDSBGlobal Get in touch @CDSBGlobal ClimateDisclosure Standards Board facebook.com/CDSBGlobal www.cdsb.net Subscribe to our newsletter at cdsb.net/newsletter Michael Zimonyi michael.zimonyi@cdsb.net cdsb.net/FrameworkLaunch
Editor's Notes
- #2 "We implement policy objectives through our standardized system that codifies environmental factors and influences capital flows more in the direction of sustainable development that it would flow otherwise. Without CDP/CDSB system, capital would flow in the opposite direction. Then present the CDP/CDSB system--data to Wall Street/ HKex, SGX…List some of the exchanges". "We implement policy objectives through our standardized system that codifies environmental factors and influences capital flows more in the direction of sustainable development that it would flow otherwise. Without CDP/CDSB system, capital would flow in the opposite direction. Then present the CDP/CDSB system--data to Wall Street/ HKex, SGX…List some of the exchanges".
- #3 First let’s start with CDP’s vision for sustainability. We are a not-for-profit organization focusing on environmental sustainability specifically. We would like to see A global economic system that operates within sustainable environmental boundaries and prevents dangerous climate change. We focus on three environmental areas: climate change, water and deforestation, and on how these interact with business and investment.
- #4 The underlying assumption of our work is that measurement, transparency and accountability drives positive change in business. For that reason we run a disclosure system that encourages companies to measure their impact and be transparent, but we also then share this information with investors and companies’ clients, which creates accountability. We collects data on behalf of 822 investors representing US$95 trillion. We also collect this information on behalf of procuring organizations that seek to engage with their suppliers. Last year over 5000 companies reported their environmental information to investors and or suppliers through CDP. We are constantly working with companies and our other stakeholders to make sure this process continues to improve.
- #5 Academia also uses information, doing research to highlight where companies are doing well, not well
- #6 The Climate Disclosure Standards Board (CDSB) is an international consortium of business and environmental NGOs. We are committed to advancing and aligning the global mainstream corporate reporting model to equate natural capital with financial capital. We do this by offering companies a framework for reporting environmental information with the same rigor as financial information. In turn this helps them to provide investors with decision-useful climate change & environmental information (such as forest risk commodities and water stewardship) via the mainstream corporate report, enhancing the efficient allocation of capital. Regulators also benefit from compliance-ready materials. Recognizing that information about natural capital and financial capital is equally essential for an understanding of corporate performance, our work builds trust and transparency needed to foster resilient capital markets. Collectively, we aim to contribute to more sustainable economic, social and environmental systems.
- #7 So what is the CDSB Framework? It uses the hard work you have done to prepare your CDP response for reporting in your annual report. Your company might do this to comply with legislation, to prepare for integrated reporting or to simply provide information to your current and potential shareholders alongside your financial information. Not only does it reduce the reporting burden by eliminating the duplication of your reporting, it adds value to your CDP disclosure by displaying the most material information in your annual report.
- #8 The CDP information request provides guidance on WHAT to report, while the CDSB Framework helps you with HOW to report in a mainstream corporate report. Simply put, it is a connector between non-financial and financial information. To find out more about the Framework, visit cdsb.net/Framework (on the slide) and let me know if you would like to get in touch with the CDSB Secretariat for more advice. You can also talk to your advisors about the CDSB Framework. IT ADDS VALUE TO YOUR EXISTING CDP RESPONSE And now to the part you’re probably most interested in today – how does this help with my CDP response? Well there are a few questions you can answer if you use the CDSB Framework for your Annual Report and Accounts.
- #12 These are the types of action incentivized through the climate change scoring methodology. This is about providing a picture of a company is doing, and not only how it has reduced emissions but what processes and structures it has in place to continue to change.
- #13 UCLA study: making companies disclose and do more CDP process helped find more opportunities
- #14 Bloomberg Asia: 25% growth in data usage Water growing enormously
- #15 Japan leader in disclosure 1/5th of responses So these are CDP ‘s figures for our 2014 Signatories Signatories include Mainstream asset managers Pension Funds Banks Insurance SRI Asset Managers Foundations In Asia we have close to 75 Signatories in 2014