• Register
Return to: Home > News > CDSB aligns reporting Framework with TCFD recommendations

CDSB aligns reporting Framework with TCFD recommendations

The Climate Disclosure Standards Board (CDSB) has updated its Framework for reporting environmental information, natural capital and associated business impacts, to align it with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

At a CDSB conference held in London on 9 April CDSB chairman Richard Samans explained that the TCFD created momentum for the CDSB because carried by the charisma of Bank of England governor Mark Carney and businessman turned politician Michael Bloomberg the TCFD has brought into the mainstream what the CDSB has been focusing on for a decade.

The TCDF was established by the Financial Stability Board (FSB) at the end of 2015 under the chairmanship of Bloomberg. It aims at developing voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders. In the subsequent year the task force published its first set of recommendations for voluntary disclosures.

At the CDSB event, Samans pointed that the TCFD recommendations represented a good opportunity for CDSB as by nature the task force only suggest what should be done to improve sustainability disclosure but not how.

CDSB has also released its five-year strategy, which builds on the organisations previous work in the technical area and on regulatory engagement, but extends the remit of its actions to corporate and investor engagement.  CDSB managing director Simon Messenger commented on the revised Framework: “Historically, our primary activities were, for strategic and opportunistic reasons, focused on regulatory engagement and technical work […] we will continue not only our historical work with regulatory engagement, and we will grow it, but in particular we will have a large focus on our corporate engagement and our investor engagement.”

The increase in focus on corporate and investor engagement, according to Messenger comes down to the fact that “more and more companies are understanding that disclosing climate related information is in the companies’ self-interest”. If companies are becoming more aware of the importance and benefits of non-financial reporting it will increase transparency levels and improve attitudes towards new non-financial reporting legislation, he continued.

The launch of the updated framework coincided with CDSB’s 10 year anniversary. Reflecting on those 10 years and the future of non-financial reporting Paul Simpson CEO of CDP, which has hosted the CDSB secretariat since its inception, said: “I do think that giving the twentieth birthday speech of CDSB, we will be talking about this [ESG reporting] being mandated and regulated.”

An idea tempered by Messenger who highlighted that regulatory changes shouldn’t necessarily be high level. “Regulatory changes don't need to be cumbersome,” he said. “And we are working with regulators to be creative in making small adaptations to current legislation.”

 

By Joe Pickard

Top Content

    The importance of international audit standards

    Addressing members of the Institute of Chartered Accountants in England and Wales (ICAEW), the US Securities and Exchange Commission (SEC)’s chief accountant, Wesley Bricker, expressed his views on the importance of high-quality audit work. An edited version of his speech is given below

    read more

    IFRS: Presenting a firm foundation

    Jonathan Minter speaks to Nick Anderson, board member of the IFRS Foundation, about the body’s current objectives and initiatives, including the primary financial statements project and the handling of joint ventures

    read more

    Reporting on culture and the business of trust

    Following a number of high-profile failures, trust in business and accounting is at a low point. To discuss how the situation could be improved, the Charted Institute of Management Accountants (CIMA) hosted a conference on improving trust levels. Jonathan Minter reports

    read more

    Widening the responsibility business net

    The 17th Responsible Business Summit Europe featured a number of speakers addressing the wider implications of looking beyond just financial data. The Accountant presents selected highlights

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.