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CDSB aligns its reporting Framework with TCFD recommendations and launches 5-year strategy

The Climate Disclosure Standards Board (CDSB) has released today an updated version of their Framework for reporting environmental information, natural capital and associated business impacts, which is now aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). 

The newly-released Framework presents clear links between its principles and reporting requirements with the TCFD recommendations and the supporting recommended disclosures. The requirements provide more detailed disclosure expectations, with clearly outlined purposes. There is also additional guidance on risk management, as well as a recommendation for companies to consider how resilient their strategies are to material environment risks associated with a 2°C or lower scenario, in line with the Paris Agreement and all the requirements stemming from it. 

The CDSB Framework is currently being used globally by companies with a Market Capitalization of $5.2tn and helps organizations report climate change and natural capital information via their mainstream report, the vehicle identified by the TCFD. The newly aligned Framework will help streamline the reporting cycle for many companies, supporting the disclosure of material information to their current and potential shareholders, in line with the TCFD recommendations.

CDSB has also released its five-year strategy, which aims to support enhanced corporate disclosures, lead to improved allocation of capital and thereby creating more sustainable financial and environmental systems.

Richard Samans, Chairman, Climate Disclosure Standards Board said: “The past decade has seen a fast-changing landscape for climate and environmental disclosure. The formation of the G20’s Task Force on Climate-related Financial Disclosures has made it evident that investors need clear information on companies’ environmental performance in a way that is fully integrated with financial information to clearly understand business value. The CDSB Framework has now been aligned with the Task Force’s recommendations and will help companies translate climate and environmental information into business impacts, creating more resilient and sustainable financial markets.”

Sara Lovisolo, Group Sustainability Manager, London Stock Exchange Group said: “A streamlined and more focused approach to climate reporting will make it easier for companies to meet the highest standards of disclosure currently available. The CDSB Framework is one of the tools referenced in London Stock Exchange Group's ESG reporting guidance, and we are happy to see CDSB taking a step forward to harmonize the corporate reporting space and align with key developments in this field".

Simon Messenger, Managing Director, Climate Disclosure Standards Board said: “The message that the corporate sector has been sending to voluntary reporting organisations has been heard loud and clear: ensuring alignment and collaboration among the reporting frameworks and standards is critical to reach a tipping point in effective environmental reporting. The aim of this update is to help companies understand how using the CDSB Framework helps them comply with current reporting requirements, including implementing initiatives such as the TCFD recommendations. We look forward to working with our users to continue developing more transparent and sustainable financial markets.”

The updated Framework was launched at the celebration of the 10-year anniversary of CDSB’s foundation. The event focused on the future of corporate reporting, looking at what experts in this field foresee for the next 10 years from a regulatory and corporate perspective.

Download the Framework here.