The CDSB climate change reporting framework is designed for use by companies in making disclosures in, or linked to, their mainstream financial reports about the risks and opportunities that climate change presents to their strategy, financial performance and condition. CDSB’s intention is that disclosures that comply with the climate change reporting framework will be of value to investors. Designed in line with the objectives of financial reporting and rules on non-financial reporting, the climate change reporting framework seeks to filter out what is required to understand how climate change affects a company’s financial performance.
The climate change reporting framework, launched in September 2010, has been welcomed as “essential” for consensus building, greater comparability, consistency, transparency and simplicity in climate change reporting. The climate change reporting framework adopts and relies on relevant provisions of existing standards and practices, including the Greenhouse Gas Protocol and International Financial Reporting Standards as well as reflecting developments in regulatory and voluntary reporting and carbon trading rules.
The Framework is “standard-ready” for adoption by regulators contemplating the introduction or development of climate change disclosure practices.
CDSB’s approach to developing the climate change reporting framework has been to consolidate and complement, but not necessarily to duplicate, those shared characteristics in order to help standardize climate change-related disclosure in mainstream financial reports. The climate change reporting framework therefore draws on international regulatory developments and supports and enhances the work of CDSB’s Board members and recognized standard setters.
Edition 1.1 of the climate change reporting framework is not intended to represent the final Framework, rather it is the latest iteration based upon the best available information as at the date of publication. As part of a process of continuous improvement, CDSB will build upon and update the climate change reporting framework over time in the light of experience of working with it and in response to developments in climate change disclosure practice. The climate change reporting framework has been developed with organizations leading work in mainstream reporting and climate change-related disclosure; CDSB’s Technical Working Group is continuing this work.
CDSB tracks the development of international provisions for climate disclosure and incorporates the information in the framework where appropriate. This information can be found in Collaborase.
Download the climate change reporting framework here.