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Framework consultation launches to drive uptake of nature-related financial disclosure globally

CDSB launches consultation to advance the disclosure of nature-related financial information in the mainstream report and explore the role of the CDSB Framework in this process.

London, 5 December 2019: With momentum building for climate-related financial disclosure, there is a growing imperative for environmental issues to be reported in an integrated way. Today the Climate Disclosure Standards Board (CDSB) announces the launch of its consultation with the aim of accelerating the rate of nature-related financial disclosures at scale by organisations globally and exploring the role of the CDSB Framework in facilitating this. 

“As the UN’s Decade on Biodiversity draws to a close, the 2020s need to be the decade of decisive action. With every country in Europe currently off track to achieve the Sustainable Development Goals (SDGs) goals, in particular on climate and biodiversity, coupled with the stark warnings from the Intergovernmental Science and Policy Platform on Biodiversity and Ecosystems Services (IPBES) Global Assessment Report earlier this year, it’s clear that we do not have the luxury of time to act,” said Mardi McBrien, Managing Director, CDSB. “CDSB believes a tremendous opportunity exists to leverage established market-tested practices and frameworks such as the CDSB Framework to drive rapid uptake of environmental disclosure.” 

The CDSB Framework for reporting environmental and climate change information was built on international accounting practices and standards. Its 7 principles and 12 reporting requirements are aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Given the interconnectivity of environmental and climate systems it is important that both these issues are not treated in isolation. In fact, the Network for Greening the Financial System (NGFS), a network of central banks and supervisors, recommends that policymakers and supervisors consider “further actions to foster a broader adoption of the TCFD recommendations and the development of an internationally consistent environment disclosure framework.”

“We are in a unique position whereby the CDSB Framework already covers environmental and climate disclosure, is heavily referenced in stock exchanges’ guidance globally and aligns with existing regulation. We invite you to participate in this consultation process and collaborate in the delivery of a universally applicable framework globally that enables companies to act now on biodiversity loss and natural capital and facilitate the urgent allocation of capital towards projects aligned with a sustainable future, “ says Richard Samans, Managing Director, World Economic Forum and Chair, CDSB Board. 

“We have seen the power of the TCFD in elevating climate-related financial disclosure to the mainstage. The CDSB Framework is aligned with the TCFD recommendations and uses the structure of those recommendations to apply to nature-related, as well as climate-related, financial disclosure. The CDSB Framework therefore presents the market with a viable, market-tested and robust mechanism for coherent reporting on nature and climate-related financial risks, dependencies and opportunities,” Lois Guthrie, Director, Redefining Value, WBCSD and Chair of CDSB’s Technical Working Group. 

The financial sector has a crucial role to play in delivering capital flows that support an environmentally, sustainable economy. However, without reliable and consistent information regarding natural capital risks and opportunities, assets cannot be properly assessed and valued, and risk cannot be priced accordingly. Standardised nature-related financial disclosure would facilitate this and ensure that organisations have greater oversight of their impacts and dependencies on the environment. 

About the consultation:

Interested parties are invited to contribute to this open consultation and call for evidence from today until the 28 February 2020. Full details can be found here: www.cdsb.net/consultation  

CDSB will host a webinar on 28 January at 08.30 GMT and 16.30 GMT to discuss the consultation and gain your feedback. 

Register for 08.30 GMT webinar 

Register for 16.30 GMT webinar 

About CDSB 

The Climate Disclosure Standards Board (CDSB) was founded in 2007 and is an international consortium of business and environmental NGOs committed to advancing and aligning the global mainstream corporate reporting model to equate natural capital with financial capital. It does so by offering companies a framework for reporting environmental and climate information with the same rigour as financial information. In turn, this helps them to provide investors with decision-useful environmental and climate information via the mainstream corporate report, enhancing the efficient allocation of capital.  Regulators also benefit from compliance-ready materials. Collectively, CDSB aim to contribute to more sustainable economic, social, and environmental system. 

CDSB hosts the TCFD Knowledge Hub on behalf of the Task Force on Climate-related Financial Disclosures.

To learn more about CDSB and download the framework, please visit www.cdsb.net. Follow CDSB on LinkedIn and Twitter.

Media contact:

Lesley McKenna, Communications Manager, 
Climate Disclosure Standards Board 
 
+44 (0) 203 818 3938