The Climate Disclosure Standards Board (CDSB) is an international consortium of business and environmental NGOs. They are committed to advancing and aligning the global mainstream corporate reporting model to equate natural capital with financial capital.
They 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, their work builds the trust and transparency needed to foster resilient capital markets. Collectively, they aim to contribute to more sustainable economic, social and environmental systems.
CDSB's mission is to provide decision-useful environmental information to markets via the mainstream corporate report to enhance the efficient allocation of capital, corporate performance and for the continuance of economic, social and environmental systems.
CDSB advances its mission by:
providing a forum for collaboration on how existing standards and practices can be supported and enhanced so as to link financial and natural capital reporting, and respond to regulatory developments;
consolidating existing good practice through CDSB’s commitment not to create a new standard but to enhance initiatives that are widely adopted and with which business is already familiar;
providing resources for preparers and users of climate change-related information and for regulators so as to encourage a more globally harmonized approach to environmental reporting.
2015 Following 2 years of development and several public consultations CDSB published the Framework for reporting environmental information & natural capital
The CDSB Climate Change Reporting Framework Edition 1.1
was referenced as a method for compliance to the greenhouse gas reporting requirements mandated by the UK Companies Act 2006.
The CDSB Board has decided to expand the Climate Change Reporting Framework to include guidance for reporting environmental information and natural capital. The decision prompted by developments in corporate reporting including the introduction of mandatory requirements for the disclosure of environmental information in some jurisdictions, the increasing recognition by organisations of the risks associated with their use of natural resources and the demand for a more holistic approach to corporate reporting to include environmental (and other) information.
Climate Change Reporting Framework Edition 1.0 released to provide guidance for reporting climate change-related information in mainstream reports.
The CDSB consortium
was catalyzed by the World Economic Forum in response to a concern expressed by Members and constituents that, because the content and format of climate reporting by companies varies widely and often does not appear in their mainstream reports to the investment community, it is not yet fully actionable for investors, trustees, directors and managers. Without comparable and comprehensive information, investors have a difficult time comparatively assessing the implications for shareholder value of climate-related risks to physical assets and resource inputs or of changes in technology and regulation.