Consolidation of CDSB

On November 3rd 2021 the IFRS Foundation announced that it would form a new International Sustainability Standards Board (ISSB), as well as the consolidation of the Climate Disclosure Standards Board (CDSB—an initiative of CDP) and the Value Reporting Foundation (VRF—which houses the Integrated Reporting Framework and the SASB Standards) by June 2022. 

The ISSB will develop, in the public interest, IFRS Sustainability Disclosure Standards that provide a global baseline of disclosure requirements designed to give investors high quality, globally comparable sustainability information that can be used by jurisdictions on a standalone basis or incorporated into requirements to meet broader, multi-stakeholder or public policy needs. This programme of work has been welcomed by the G20 Leaders and carries the support of market regulators, multilateral institutions, investors and companies worldwide.

The ISSB will work in close cooperation with the International Accounting Standards Board (IASB) to ensure connectivity and compatibility between IFRS Accounting Standards and IFRS Sustainability Disclosure Standards.

Climate Disclosure Standards Board

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 rigour as financial information. In turn this helps them to provide investors with decision-useful environmental information via the mainstream corporate report, enhancing the efficient allocation of capital. Regulators also benefit from compliance-ready materials.

Recognising 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.

Who benefits from CDSB’s work?

Investors can make informed and robust capital allocation decisions based on clarity, confidence and trust in climate change, natural capital and environmental opportunities and risks disclosed by a company.

Analysts can be better equipped to utilise climate change, environmental and natural capital-related information in determining impacts on future cash flow and ultimately company valuations. 

Companies can use the CDSB Framework to incorporate climate change, environmental and natural capital-related information in mainstream financial reports, assisting companies in achieving a holistic view of how climate change and natural capital can affect their performance and the necessary actions they could take to address the risks and opportunities.

Regulators can benefit from standards-ready material and a framework that can be immediately adopted or referenced as a method of compliance in regulation/guidance, informing business decision-making related to the use of natural resources, land and sustainable behaviour. 

Stock exchanges can consider new voluntary and mandatory listing requirements linked to material climate change, environmental and natural capital-related risks and opportunities.

Accounting firms can provide more comprehensive assurance of companies reporting on climate change, environmental and natural capital-related performance.