On 31st January 2022, the Climate Disclosure Standards Board (CDSB) was consolidated into the IFRS Foundation to support the work of the newly established International Sustainability Standards Board (ISSB). While this site and its resources remain relevant for preparers looking to improve sustainability disclosure until such time as the ISSB issues its IFRS Sustainability Disclosure Standards on such topics, no further work or guidance will be produced or published by CDSB. For further information please visit the IFRS website.

Davos paper: Considerations for reporting and disclosure in a carbon-constrained world

Hot on the heels of a historic climate deal in Paris, the Carbon Tracker Initiative and CDSB have launched proposals for risk reporting by fossil fuel companies in Davos.

The Paris Agreement confirmed the commitment of global leaders to limit dangerous warming to below 2°C but also promised to pursue an even stricter 1.5°C target, adding more pressure for companies, investors and regulators to act. The ‘Paris effect’ reinforces the political and market signals emerging that will aid the transition to a climate-resilient, low-carbon economy and some actions have already been taken to realize that goal.

These include, for example, the announcement at COP21 by Mark Carney, Governor of the Bank England and Chair of the Financial Stability Board, that Michael Bloomberg will head a new global Task Force on Climate-related Financial Disclosures (TCFD).  The TCFD is intended to be an industry-led body that seeks to identify and set out the information the capital markets and other stakeholders need to manage the transition.

This paper is designed to assist the TCFD members in assessing the ‘carbon bubble’ concept and ‘stranded asset’ risks inherent in the business-as-usual strategies of many fossil fuel companies.

Download paper.