March 1, Johannesburg Stock Exchange: CDSB, in partnership with Promethium Carbon, have released their new report ‘Climate Change: Your journey to Integrated Reporting’. The report aligns the principles of Integrated Reporting with the Climate Change Reporting Framework and is a helpful tool for those thinking about integrated corporate reporting.
CDSB, in partnership with Promethium Carbon, have produced a report titled ‘Climate Change-Your Journey to Integrated Reporting’. The report is relevant for companies preparing for, or undertaking Integrated Reporting. There is no longer any doubt that climate change is a material issue with the ability to impede and impact the financial performance, governance and materiality of an organization. The report shows that climate change affects all capitals of a business, impacting on its ability to preserve and create value. As such, it is integral that climate change-related disclosures are included in mainstream financial reports. The report was launched at the Johannesburg Stock Exchange on March 1st and can be found here.
A key motivator behind the publication has been to explain how the well-established practice of climate change-reporting fits in with the development of integrated reporting. The International Integrated Reporting Council (IIRC) has recently published the Prototype of the International Reporting Framework with a Consultation Draft of the Frame¬work due to be published next week. According to the report an integrated report should:
‘provide concise information that is material to assessing the organization’s ability to create and preserve value in the short, medium and long term.’
Integrated Reporting means that financial and non-financial information needs to be connected and that financial statements alone are not the only means for assessing a company value. Thus when determining their disclosures in financial reports, companies and organizations should include factors (whether internal or external) that may have an impact on their capital. With this in mind, the report has shown that climate change and integrated reporting are relevant and complimentary.