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How to communicate climate change in financial reports to communicate value to investors. This presentation was given by CDSB's Patrick Crawford in the context of the upcoming amendments to the UK Companies Act 2006, requiring UK quoted companies to report GHG emissions information in their Directors' reports. Referenced as a method of compliance, the Climate Change Reporting Framework can assist companies to comply and helps in going beyond to communicate reliable and consistent information to investors. Referenced as a method of compliance, the Climate Change Reporting Framework can assist companies to comply and helps in going beyond to communicate reliable and consistent information to investors. The upcoming amendment to the UK Companies Act is a great opportunity for companies to deepen their engagement with investors through a more comprehensive and meaningful Director's report.
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@CDSBGlobal
CDSB’s Repor-ng Framework Communica-ng Climate Change in
Mainstream Reports
@CDSBGlobal
Communicating Climate Change “Reporting from the principle of communication rather than compliance."
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
A stepping stone to producing integrated reports
CDP Informa-on request
CDSB Guidance CDSB’s Repor-ng Framework
THE DATA THE LENS THE HELP VISIBILITY
Mainstream Report
CDSB’s Repor-ng Framework -‐ Connec-ng
@CDSBGlobal
CDSB’s Repor-ng Framework • Complements the CDP process • Explains how management should present informa-on in mainstream annual reports • Ensures that the informa-on is relevant and useful for investors • Harmonises with exis-ng accoun-ng and na-onal standards • Connects Financial and non-‐financial informa-on
CDSB’s Repor-ng Framework
@CDSBGlobal
PuIng it into prac-ce 1. Determina-on: Decide what to report 2. Prepara-on: Gather clear, consistent, complete Informa-on 3. Presenta-on: Ensure disclosure is clear 4. Review: Check accuracy and ensure relevance
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
DETERMINATION – Decide what to report
• Iden-fy the needs of your investors regarding climate change • Reflect the Board’s assessment of the impacts of climate change on the company’s financial performance • Appraise your current business model regarding climate change risks, opportuni-es and challenges • Review regulatory and compliance obliga-ons
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
Requirements on Determina-on 2.3 An organiza*on shall determine the disclosures to be made under the CCRF according to the categories of disclosure content that are of value to investors and a process that involves a thorough assessment of how climate change has actually affected or has the poten*al to affect the organiza*on’s strategic objec*ves.
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
PREPARATION: Gather clear, consistent, complete informa-on • Provide clarity on the repor-ng period and repor-ng boundaries • Iden-fy relevant standards, protocols and policies • Analyse material issues posed by climate change • Consider the relevant -me scales for past results and future prospects • Include a Statement of Conformance with CDSB’s Repor-ng Framework
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
Requirements on Prepara-on 2.12 Disclosures shall be made on a consistent basis and shall include the informa*on that is necessary to maximize its value to investors.
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
PRESENTATION: Ensure the disclosure is clear • Ensure informa-on is relevant and useful for investor decision making • Use simple language, with enough context and assump-ons • Discuss the link between climate risk and company prospects • Ensure presenta-on allows easy year-‐on-‐year comparisons • Segment informa-on to focus investor analysis • Use climate change measures to show progress against targets
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
Requirements on Presenta-on 2.26 Disclosures shall be presented and communicated so as to make them useful for investors.
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
REVIEW: Check accuracy and ensure relevance • Check the content against the expecta-ons of steps 1, 2, and 3 • Ensure the final report has a rigorous internal review and sign-‐off • Alignment other company communica-ons with the mainstream report • Share the report with selected external stakeholders to invite their perspec-ve
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
Summary of requirements 2.30 Disclosures shall be clear and StraighHorward 2.32 Informa*on shall … explain the links between the organiza*on’s strategy … and climate change impacts. 2.36 Organiza*ons shall disclose performance measures … to manage the business and ... against climate change-‐related targets 2.41 Disclosures shall be consistent with the associated financial statements of the organiza*on…
CDSB’s Repor-ng Framework in Prac-ce
@CDSBGlobal
• Download CDSB’s Repor-ng Framework and Guidance from www.cdsb.net/Framework
• ATend CDSB’s Webinars • Move from repor-ng to ac-on • Communicate with your Management Team • Communicate with your investors
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Climate Disclosure Standards Board
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Contact: Patrick Crawford Corporate engagement [email protected]
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