CDSB’s Reporting Framework: Communicating Climate Change in Mainstream Reports

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CDSB’s  Repor-ng  Framework  Communica-ng  Climate  Change  in    

Mainstream  Reports  

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Communicating Climate Change “Reporting from the principle of communication rather than compliance."

CDSB’s  Repor-ng  Framework  in  Prac-ce  

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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  

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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    

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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  

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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  

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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  

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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  

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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  

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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  

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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  

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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  

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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  

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•  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  

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Climate  Disclosure  Standards  Board  

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Contact:  Patrick  Crawford      Corporate  engagement      [email protected]  

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