Consultation launches to drive uptake of nature-related financial disclosure globally
- January 10, 2020
- Category: Corporate, Environmental, Investment and Finance
The Climate Disclosure Standards Board (CDSB) has launched a new 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.
Founded in 2007, the Board 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.
The CBSD offers 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.
It also hosts the TCFD Knowledge Hub on behalf of the Task Force on Climate-related Financial Disclosures.
Mardi McBrien, Managing Director, CDSB commented:
“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.”
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.
Richard Samans, Managing Director, World Economic Forum and Chair, CDSB Board said 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, “ he added.
According to Lois Guthrie, Director, Redefining Value, WBCSD and Chair of CDSB’s Technical Working Group, the CDSB Framework presents the market with a viable, market-tested and robust mechanism for coherent reporting on nature and climate-related financial risks, dependencies and opportunities
The CDSB believes 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.
Deadline to submit responses and comments to contribute to the consultation and call for evidence is 28 February 2020.
CDSB is also hosting a webinar on 28 January at 08.30 GMT and 16.30 GMT to discuss the consultation and gain further feedback.
Click here to access the consultation online
Register for 08.30 GMT webinar
Register for 16.30 GMT webinar