Integrating climate change information into mainstream corporate reports, Americas focus

@CDSBGlobal

Ben$Thompson$Program'Manager'

Sustainable'Business'Autodesk'

Patrick$Crawford$Corporate'Engagement'

CDSB'

Lois$Guthrie$Execu<ve'Director'

CDSB'

Amy$Pawlicki$Director'

Business'Repor<ng,'Assurance'&'Advisory'Services'and'XBRL'

AICPA'

Thursday'17th'October'2013

Ben$Richards$Head'of'

Sustainability'Radley'Yeldar'

Jim$Coburn$Senior'Manager'Investor'Programs'

Ceres'

Integra<ng'Climate'Change'Informa<on'

into'Mainstream'Corporate'Reports'

@CDSBGlobal

Integra<ng'climate'change'informa<on'into'mainstream'corporate'reports'

Tuesday'3rd'December'2013'–'CDSB'Americas'Webinar

Patrick$Crawford$Corporate'Engagement'

@CDSBGlobal

Financial'statements'capture'less'than'20%'of'corporate'risks'(source:'Eurosif,'IIRC)'

Increasing'ESG'repor?ng'requirements'–'UK,'EU,'US?'

Increasing'requirement'to'integrate'ESG'informa<on'with'financial'repor<ng'

Increasing'impact'of'climate'change'on'decisions'and'ac<ons'by'management,'investors'&'other'

stakeholders'

Connec<ng'Non_Financial'and'Financial'Informa<on'

@CDSBGlobal

The$integra+on$of$climate$change1related$informa+on$into$mainstream$corporate$repor+ng.$

Objec<ve'

''When?'

January'2007:'Launched'at'World'Economic'Forum,'Davos,'Switzerland,'as'a'special'project'of'CDP'

Climate'change'informa<on'in'CDP'

disclosure'

'CDSB’s'

Framework'

Annual'Report'

''Members'•  Main'accountants,'

ACCA,'ICAEW'…'•  GHG'NGOs'e.g.'GHG'

management'ins<tute,'Carbon'Tracker,'TCR'

•  Investors,'e.g.'Investor'Group'on'Climate'Change,'Ceres'

•  Business,'e.g.''WRI,'WBCSD,'BT,'WEF'

Standardize'climate'change_related'(natural'capital)'repor<ng'for'fair'and'transparent'markets'

''Why?'

The'need'for'CDSB’s'Repor<ng'Framework'

@CDSBGlobal

CDSB’s$Repor?ng$Framework$'•'Complements$the'CDP'process'

•'Communicates'management’s'assessment'of'climate'change'in'annual'reports'

•''Connects'Financial'and'non_financial'informa<on;''harmonizing'with'exis<ng'accoun<ng'and'na<onal'standards'

•'Conformance'with'the'Framework'prepares'companies'for'compliance'with'current'and'proposed'regula<ons'

•'Download'CDSB’s'Repor<ng'Framework'and'Guidance'from'www.cdsb.net/Framework$

CDSB’s'Repor<ng'Framework'

@CDSBGlobal

Communicating Climate Change “Reporting from the principle of communication rather than compliance.“ Hermes EOS Investors

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$Framework$used$in$ADDITION$to$the$CDP$disclosure$

@CDSBGlobal

CDSB’s'Repor<ng'Framework'in'Prac<ce

CDSB’s$Framework$provides$guidance$on$essen?al$topics:$

+  Execu?ve$statement$(2.8,$4.6)$

+  Boundaries$(2.20,$4.23\4.27)$+  Materiality$(2.8\2.10,$4.6)$

+  Connec?ng$with$business$performance$(2.41,$4.6\4.8)$

+  Future$outlook$(2.16,$4.14–4.15)$

@CDSBGlobal

Puang$it$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'and'material''4.$Review:$Check'accuracy'and'ensure'relevance'


@CDSBGlobal

CDSB’s$Repor?ng$Framework$'•'Complements$the'CDP'process'

•'Communicates'management’s'assessment'of'climate'change'in'annual'reports'

•''Connects'Financial'and'non_financial'informa<on;''harmonizing'with'exis<ng'accoun<ng'and'na<onal'standards'

•'Conformance'with'the'Framework'prepares'companies'for'compliance'with'current'and'proposed'regula<ons'

•'Download'CDSB’s'Repor<ng'Framework'and'Guidance'from'www.cdsb.net/Framework$

CDSB’s'Repor<ng'Framework'

© 2013 Autodesk

Corporate Perspective: Integrated Reporting Ben Thompson Sustainable Business Program Manager

CDSB

© 2013 Autodesk

Leader in 3D design software From solving today’s business problems to tackling tomorrow’s global challenges, millions of professionals use Autodesk® solutions to imagine, design, and create a better world.

© 2013 Autodesk

BREAKTHROUGH INNOVATION:

TECHNOLOGY:

A better world will require:

Support and accelerate breakthrough ideas to design and create a better world

Powerful simulation and analysis tools that reveal consequences of design decisions, thereby enabling users to be more thoughtful and optimize decisions.

UNDERSTANDING:

Advance understanding of, and commitment to designing within limits of the planet.

BUSINESS PRACTICES:

Align Autodesk business practices and decision-making with our better world vision.

© 2013 Autodesk

BETTER WORLD Process

People

Product

BETTER WORLD

ALIGN OUR BUSINESS TO OUR MISSION

© 2013 Autodesk

Integrated Reporting is a Clear, Beneficial Trend

1.  Tell a clearer story of company performance

2.  Engage with investors on new opportunities

3.  Better manage natural capital

4.  Standardize and streamline the reporting process

© 2013 Autodesk

Align Sustainability with CFO’s Process & Language

1.  Accounting 2.  Decision-making 3.  Reporting

© 2013 Autodesk

It’s Early, but we’re making progress.

!  Many efforts to standardize.

!  Questions still exist about creating liability.

!  Focus on materiality is essential.

!  Keep dialogue open with CFO and IR.

© 2013 Autodesk, Inc. All rights reserved.

Autodesk is a registered trademark of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product and services offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.

Preparation Amy Pawlicki Director – Business Reporting, Assurance & Advisory Services AICPA

CDSB Americas Webinar Integrating Climate Change Information into Mainstream Corporate Reports December 3, 2013

American Institute of CPAs®

" The AICPA Assurance Services Executive Committee Sustainability Reporting Advisory Board was established to better understand companies’ perspectives on sustainability reporting and assurance

" The Advisory Board is comprised of company

representatives across various industries that have produced or are in the process of producing sustainability reports

Understanding Current and Evolving Practice

20


" Examples of preparation practices currently in use

" The focus is more on accuracy of disclosed data rather than completeness (i.e., certain matters may be excluded from reports if their accuracy or relevance is questioned)

" Monte Carlo simulation is used to determine and present the level of uncertainty that exists for some data

" The level of processes and controls in place for information that is assured is more robust and SOX-like

" Materiality is determined following guidelines from various frameworks such as CDP and GRI

21

Understanding Current Practice


" Examples of preparation practices currently in use:

"  Information disclosed is reviewed by the legal team

" Anything posted to the company website, including sustainability information, is reviewed by the Disclosure Committee

" Cross-discipline (sustainability/finance) checks are performed to ensure any relevant Sustainability information has not been omitted from the 10-K

22

Understanding Current Practice (cont’d)


" Common themes/trends in sustainability reporting: " Finance and sustainability functions beginning to work

together, e.g., by performing cross-discipline checks

" Global stakeholder engagement calls being instituted (similar to analyst calls, but for various stakeholders)

" Those charged with governance are beginning to take an increasing interest in sustainability reporting

" Companies beginning to seek external assurance on their sustainability reports or portions thereof

" Reports moving from printed to online-only reports

" Annual reporting moving to quarterly or more real-time reporting

23

Insights on Evolving Practices


" Common challenges in current reporting practices:

" Numerous requests to complete surveys/questionnaires strain company time and resources

" The existence of multiple sustainability reporting frameworks can be confusing to navigate

" Silos and insufficient connectivity between operating and business units

" Manual process, challenge to find and implement appropriate processes and systems

" Challenges in applying traditional report preparation practices to nonfinancial information (e.g. materiality, internal controls and assurance)

24

Preparation Challenges


CGMA Report: From Insight to Impact, Unlocking Opportunities in Big Data


" The International Integrated Reporting Council (IIRC) defines Integrated Thinking as: "  the active consideration by an organization of the

relationships between its various operating and functional units and the capitals that the organization uses or affects.

" Applying Integrated Thinking to sustainability reporting " The more that integrated thinking is embedded into an

organization’s activities, the more naturally will the connectivity of information flow into management reporting, analysis and decision-making. It also leads to better integration of the information systems that support internal and external reporting and communication, including preparation of the integrated report.

26

The Role of Integrated Thinking in Sustainability Report Preparation

©Radley Yeldar Ltd 27

Learning from the leaders Effective climate change storytelling Ben Richards, Radley Yeldar 3 December 2013 Say hello via Twitter @radleyyeldar


A bit about Radley Yeldar

We help the world’s bravest, brightest and best fulfil their potential

Strategy Identity Culture Performance Communications


The power of storytelling Why storytelling matters

Working out your organisation’s climate change story will help to make you credible and distinctive

...in turn making it easier for

stakeholders to trust you and to become advocates for your

approach

...which helps drive performance


What’s in a good story? The six C’s of effective climate storytelling

1. Clear

2. Credible

3. Committed

4. Compelling

5. Collaborative

6. Connected


Who’s doing a good job? Johnson and Johnson – clear


Who’s doing a good job? European example GSK – clear


Who’s doing a good job? Johnson and Johnson – credible


Who’s doing a good job? SAP – connected


Who’s doing a good job? HP – committed


Who’s doing a good job? European example Unilever – committed


Who’s doing a good job? Home Depot – compelling


Who’s doing a good job? Cisco Systems – collaborative


1.  Keep it simple

2.  Join it up

3.  Show progress

Learning from the leaders Key takeaways…


For more best practice insight… Radley Yeldar’s research

Visit ry.com for more publications.


Stay in touch

Contact details: Ben Richards [email protected] Radley Yeldar Ltd 24 Charlotte Road London EC2A 3PB T 020 7033 0700 F 020 7033 0800 www.ry.com

$Investor$Perspec?ves:$Integra?ng$Climate$Change$

Informa?on$into$Mainstream$Repor?ng$$

Jim'Coburn,'Senior'Manager,'Investor'Programs'[email protected]'''617_247_0700'ext.'119'

www.ceres.org''

44'

Overview'

• 'State'of'integrated'repor<ng'• 'Investor'perspec<ves'on'material'climate'issues'

• 'Investor'use'of'climate'disclosure'

• 'Advantages'of'integrated'repor<ng'&'use'of'the'CDSB'repor<ng'framework'

45'

Key$reports'

46'

VerDate Nov<24>2008 12:57 Feb 05, 2010 Jkt 220001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\08FER2.SGM 08FER2WR

eier

-Avi

les

on D

SK

GB

LS3C

1PR

OD

with

RU

LES

2

Monday,

February 8, 2010

Part III

Securities and Exchange Commission 17 CFR Parts 211, 231 and 241 Commission Guidance Regarding Disclosure Related to Climate Change; Final Rule

CERES BLUEPRINT FOR SUSTAINABLE INVESTINGJune 2013

Authored byPeter Ellsworth, CeresKirsten Snow Spalding, Ceres

THE 21ST CENTURYINVESTOR:

DISCLOSING CLIMATERISKS & OPPORTUNITIESIN SEC FILINGSA GUIDE FOR CORPORATE EXECUTIVES,ATTORNEYS & DIRECTORS

FEATURING INVESTOR EXPECTATIONS FOR QUALITY DISCLOSURE

February 2011

Authored byJim CoburnSean H. DonahueSuriya Jayanti

State$of$integrated$repor?ng:$S&P$500'

Source:$Peter$DeSimone,$IRRC$Ins?tute,$Sustainable$Investments$Ins?tute,$Integrated)Financial)&)Sustainability)Repor7ng)in)the)U.S.,)April)2013$

47'

Integrated Financial and Sustainability Reporting in the United States 5

Report Findings in Numbers (S&P 500)

499 The number of companies making a sustainability disclosure in a finan‐cial filing or linking financial perfor‐mance to a sustainability initiative

74 The percentage of companies

placing a dollar figure on a sustainability‐related topic.

7 Number of companies with an

integrated financial and sustainability report

68 Percent mentioning environmental

management

43 Percent linking executive pay to

sustainability criteria

67 Percent talking about employment

65

Percent with a sustainability‐related monetary estimate in a Form 10‐K

66 Percent discussing climate change

76 Percent with sustainability reporting

63 Percent disclosing on hazardous

waste

19 Percent with a sustainability‐related

dollar figure in an annual report

54 Percent talking about product formulations

36 Percent using GRI

49 Percent noting

waste management initiatives

29 Percent making the financial con‐nection in a sustainability report

39 Percent looking at water use

37 Percent with race and/or gender as

criteria for director nominations

21 Percent reviewing ethics

11 Percent placing a dollar figure on

hazardous waste

15 Percent discussing human rights

60 Percent disclosing sustainability‐

related contingencies or liabilities

Integrated Financial and Sustainability Reporting in the United States 5

Report Findings in Numbers (S&P 500)

499 The number of companies making a sustainability disclosure in a finan‐cial filing or linking financial perfor‐mance to a sustainability initiative

74 The percentage of companies

placing a dollar figure on a sustainability‐related topic.

7 Number of companies with an

integrated financial and sustainability report

68 Percent mentioning environmental

management

43 Percent linking executive pay to

sustainability criteria

67 Percent talking about employment

65

Percent with a sustainability‐related monetary estimate in a Form 10‐K

66 Percent discussing climate change

76 Percent with sustainability reporting

63 Percent disclosing on hazardous

waste

19 Percent with a sustainability‐related

dollar figure in an annual report

54 Percent talking about product formulations

36 Percent using GRI

49 Percent noting

waste management initiatives

29 Percent making the financial con‐nection in a sustainability report

39 Percent looking at water use

37 Percent with race and/or gender as

criteria for director nominations

21 Percent reviewing ethics

11 Percent placing a dollar figure on

hazardous waste

15 Percent discussing human rights

60 Percent disclosing sustainability‐

related contingencies or liabilities

$Investor$perspec?ves$on$material$sustainability$issues$

48'

THE 21ST CENTURY INVESTOR: CERES BLUEPRINT FOR SUSTAINABLE INVESTINGCeres Blueprint for Sustainable Investing 12

21ST CENTURY INVESTOR: CERES BLUEPRINTFOR SUSTAINABLE INVESTING

INVESTMENT GOVERNANCE!

Step 1: Develop Investment BeliefsThe Board of Trustees, or highest levelof fiduciary authority, will establishcore investment principles that includea commitment to sustainableinvestment.

Step 2: Implement Trustee OversightThe Board of Trustees, or highest levelof fiduciary authority, will establishoversight of sustainable investmentinitiatives and accountability forimplementation.

INVESTMENT PRACTICES!

Step 3: Assess MaterialityThe trustees, in collaboration withinvestment and governance staff,consultants, managers, and sector & issue experts will identify thesustainability issues and risk factorsthat are material to the fund.

Step 4: Review Asset AllocationThe trustees, in collaboration with theCIO, investment staff, consultants,managers and sector & issue expertswill evaluate asset allocation modelsfor material sustainability risks.

Step 5: Integrate ESG intoInvestment StrategyTrustees, investment staff, consultantsand managers will select sustainabilitystrategies best suited to the fund’s risk-adjusted return objectives.

Step 6: Incorporate ESG intoManager SelectionTrustees, investment and governancestaff and consultants will requiresustainable investment and engagementexpertise in manager and consultantprocurement.

Step 7: Evaluate ManagerPerformanceTrustees, investment and governancestaff and consultants will monitormanager performance againstsustainable investment expectations.

Step 10: Integrate SustainabilityCriteria Across All Assets Classesand StrategiesTrustees, investment and governancestaff and consultants will assess ESGrisks and opportunities in every assetclass and incorporate sustainabilitycriteria into all investment strategies.

ASSET STEWARDSHIP !

Step 8: Align Active Ownershipand Proxy Voting WithSustainable Investment GoalsTrustees, investment and governancestaff, and investment managers willestablish engagement strategies andproxy voting guidelines consistent withsustainable investment goals.

Step 9: Support Policies andMarket Initiatives that Promote a Sustainable Global EconomyAsset owners & investment managerswill support market & policy initiativesthat advance sustainable investmentinitiatives and promote a sustainableglobal economy.

$Investor$perspec?ves$on$material$climate$issues$• 'Physical'risks.'SEC:'“Possible'consequences'of'severe'weather'could'include'.'.'.'Indirect'financial'and'opera<onal'impacts'from'disrup<ons'to'the'opera<ons'of'major'customers'or'suppliers'from'severe'weather,'such'as'hurricanes'or'floods.”'

• 'Regulatory'risks.'SEC:'“Costs'required'to'improve'facili<es'.'.'comply'with'regulatory'limits'or'to'mi<gate'the'financial'consequences'of'a'‘cap'and'trade’'regime.”'

• 'Indirect'risks/opportuni<es:'SEC:'�Increased'demand'for'goods'that'result'in'lower'emissions'than'compe<ng'products..'.'.'Increased'demand'for'genera<on'and'transmission'of'energy'from'alterna<ve'energy'sources.�'

49'

$Investor$perspec?ves$on$material$climate$issues$• 'Align'mandatory'and'voluntary'repor<ng:'i.e.,'CDP'ques<onnaire,'risks'&'opportuni<es—ques<ons'5'&'6:'

50'

Method Comment

Dedicated budget forenergy efficiency

ACE has a dedicated budget for energy efficiency and carbon reduction activities.Specifically, the budget is used for energy audits/assessments and facility alterationimprovements/alterations with an ROI of <10years.

Lower return oninvestment (ROI)specification

ACE has a dedicated budget for energy efficiency and carbon reduction activities.Specifically, the budget is used for energy audits/assessments and facility alterationimprovements/alterations with an ROI of <10years.

Page: 4. Communication

4.1 Have you published information about your company’s response to climate change and GHG emissions performancefor this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication Page/Sectionreference Attach the document

In mainstream financialreports (complete) E-1 & E-2

https://www.cdproject.net/sites/2013/20/21320/Investor CDP2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/ACE Limited Annual Report 2012.pdf

In voluntarycommunications(complete)

https://www.cdproject.net/sites/2013/20/21320/Investor CDP2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/ACE-Group-2012-Environmental-Report.pdf


https://www.cdproject.net/sites/2013/20/21320/Investor CDP2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/ACE Green.pdf


Page 5

Module: Risks and Opportunities [Investor]

Page: 5. Climate Change Risks

5.1Have you identified any climate change risks (current or future) that have the potential to generate a substantive change inyour business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulationRisks driven by changes in physical climate parameters

5.1aPlease describe your risks driven by changes in regulation

ID Risk driver Description Potentialimpact Timeframe Direct/

Indirect Likelihood Magnitudeof impact

RR01 Air pollutionlimits

ACE is among thelargest and mostadvanced globalunderwriters ofenvironmentalliabilities andpollution risk, withACE EnvironmentalRisk units in NorthAmerica, Europe,Asia and LatinAmerica. Typicalcover includes

Other:Increasedprobabilisticriskexposure

1-5 years Indirect(Client) Very likely Medium-high

$Investor$perspec?ves$on$material$climate$issues$•  Use'developing'sector_specific'standards:'i.e.,'SASB’s'health'

care'sector'standards'(released'July'’13).''Excerpt:'

51'

© 2012 SASB™ CONFIDENTIAL & PROPRIETARY

Biotechnology and Pharmaceuticals

Medical Equipment and Supplies Health Care Delivery Health Care

Distribution Managed Care

Envi

ronm

enta

lC

apita

l

� Energy, water and waste efficiency



� Climate change impacts on human health

� Fuel efficiency� Climate change

impacts on human health

Soci

al C

apita

l � Safety of clinical trial participants

� Access to Medicines� Counterfeit drugs

� Ethical marketing

� Product safety

� Affordability and fairpricing


� Quality of care and patient satisfaction

� Access for low-income patients

� Patient privacy and electronic health records

� Product safety

� Counterfeit drugs� Access to coverage

� Customer privacy and technology standards

Hum

an

Cap

ital � Employee recruitment,

development and retention

� Employee health and safety

� Employee recruitment, development and retention

Inno

vatio

n

� Affordability and fair pricing

� Drug safety and side-effects

� Product design and lifecycle management

� Product lifecycle management

� Improved outcomes

Gov

erna

nce � Corruption and bribery

� Manufacturing and supply chain quality management

� Corruption and bribery


� Fraud and unnecessaryprocedures

� Pricing and billing transparency

� Corruption and bribery � Plan performance� Pricing and billing

transparency

Sustainability issues for Health CareResults of our evidence-based research and vetting processes

© 2012 SASB™ CONFIDENTIAL & PROPRIETARY

Biotechnology and Pharmaceuticals

Medical Equipment and Supplies Health Care Delivery Health Care

Distribution Managed Care

Envi

ronm

enta

lC

apita

l




� Climate change impacts on human health

� Fuel efficiency� Climate change

impacts on human health

Soci

al C

apita

l � Safety of clinical trial participants

� Access to Medicines� Counterfeit drugs


� Product safety

� Affordability and fairpricing


� Quality of care and patient satisfaction

� Access for low-income patients

� Patient privacy and electronic health records

� Product safety

� Counterfeit drugs� Access to coverage

� Customer privacy and technology standards

Hum

an

Cap

ital � Employee recruitment,

development and retention

� Employee health and safety

� Employee recruitment, development and retention

Inno

vatio

n

� Affordability and fair pricing

� Drug safety and side-effects

� Product design and lifecycle management

� Product lifecycle management

� Improved outcomes

Gov

erna

nce � Corruption and bribery


� Corruption and bribery


� Fraud and unnecessaryprocedures

� Pricing and billing transparency

� Corruption and bribery � Plan performance� Pricing and billing

transparency

Sustainability issues for Health CareResults of our evidence-based research and vetting processes

Investor$use$of$disclosure$in$investment$decisions'• 'Investors'use'sustainability'informa<on'from'GRI'reports,'SEC'filings,'CDP,'news,'reports,'ESG'consultants'and'vendors,'etc.'

• 'Excep<ng'engagements,'hard'to'generalize'about'how'data'is'used.''Significant'U.S.'ac<ons'focused'in'some'of'the'following'areas:'

• $CalPERS:'Targeted'investments,'procurement,'vo<ng'and'engagement'

• 'CalPERS’'SEC'priori<es'include'improving'climate'risk'disclosure,'use'of'SASB'standards,'collabora<on'with'other'federal'agencies'to'analyze'material'sustainability'issues.'

• $TIAA\CREF:'Inves<ng,'ac<ve'ownership,'promo<ng'ESG'transparency,'climate'change'

• 'Climate'change'ini<a<ves:'global'real'estate'portolio,'private'markets'team,'social'choice'strategies,'ac<ve'ownership'(esp.'steel,'airlines,'real'estate,'retailers)'' 52'

Enhanced$repor?ng$and$use$of$CDSB$framework$• 'Sustainability'leadership:'be'beuer'prepared'for'rapidly'changing'sustainability'demands;'help'shape'integrated'repor<ng'

• 'Encourages'companies'to'hone'in'on'key'material'issues'for'repor<ng'&'for'risk'management'

• 'Improves'collabora<on'between'sustainability,'accoun<ng'&'legal'teams'

• 'CDSB'framework'helps'investors'understand'key'issues'companies'face:'

53'

Climate Disclosure Standards Board (CDSB)

20

�� DQ�DQDO\VLV�RI�WKH�LPSOLFDWLRQV�of climate change for FRPSHWLWLYHQHVV��DFFHVV�WR�UHVRXUFHV��¿QDQFLDO�SHUIRUPDQFH�DQG�¿QDQFLDO�FRQGLWLRQ�

�� WKH�VWUDWHJLF�LPSOLFDWLRQV�RI�climate change for resources DQG�LQQRYDWLRQ��VXFK�DV�WKH�GHYHORSPHQW�RI�QHZ�WHFKQRORJLHV��EUDQG�YDOXH�DQG�UHSXWDWLRQ��FRQVXPHU�FRQ¿GHQFH�DQG�HPSOR\HH�OR\DOW\��DQG

�� DQ\�VLJQL¿FDQW�FKDQJH�LQ�WKH�organization’s position on climate change since the last report and an explanation of the reason for the change.

�� Disclosures should include details of the current and future ¿QDQFLDO�LPSOLFDWLRQV�DVVRFLDWHG�ZLWK�FOLPDWH�FKDQJH�VWUDWHJLHV��risks and greenhouse gas HPLVVLRQV��LQFOXGLQJ�WKRVH�DIIHFWLQJ�FDSLWDO�DQG�RSHUDWLQJ�H[SHQVHV��OLTXLGLW\��FRPPLWPHQWV��OLDELOLWLHV�RU�revenues. Where it is not possible WR�TXDQWLI\�¿QDQFLDO�LPSDFWV��HVWLPDWHV��WRJHWKHU�ZLWK�TXDOLWDWLYH�LQIRUPDWLRQ��PD\�EH�SURYLGHG�LQ�the form of ranges based on stated assumptions or scenarios.

�� Disclosure is useful when it connects the information that management uses internally for decision-making purposes about WKH�FRPSDQ\¶V�VWUDWHJ\��JRDOV�DQG�objectives with what is provided externally to investors for their decision-making.42 Information is useful when it tells investors ³WKH�VWRU\�RI�KRZ�PDQDJLQJ�>FOLPDWH�FKDQJH�UHODWHG�LVVXHV@�KHOSV�WKH�FRPSDQ\�WR�LQFUHDVH�VDOHV��ORZHU�FRVWV��VPRRWK�FDVK�ÀRZ��ERRVW�EUDQG�YDOXH�DQG�VWUHQJWKHQ�ULVN�PDQDJHPHQW�´ 43 and when it shows the ³OLQNDJHV�EHWZHHQ�FRUSRUDWH�FOLPDWH�FKDQJH�VWUDWHJLHV��¿QDQFLDO�SHUIRUPDQFH��DQG�*+*�HPLVVLRQ�UHGXFWLRQV�´ 44

2. Risks

�� Disclosure about risks shall include an explanation and qualitative assessment of the organization’s exposure to current and anticipated (long-WHUP�DQG�VKRUW�WHUP��VLJQL¿FDQW�risks associated with climate change.

��2SSRUWXQLWLHV

�� Disclosure about opportunities shall include an explanation and qualitative assessment of current and anticipated (long-term and short-WHUP��VLJQL¿FDQW�RSSRUWXQLWLHV�associated with climate change.

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• 'Investor'use'of'climate'informa<on'in'investment'decisions:'CalPERS’'Towards'Sustainable'Investment,'TIAA_CREF’s'report'on'responsible'inves<ng'

• 'Advantages'of'enhanced'repor<ng'in'mainstream'filings:'Ceres’'Disclosing'Climate'Risks'&'Opportuni<es'in'SEC'Filings'

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• 'Washington'state'firms’'repor<ng'

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54'

@CDSBGlobal @CDSBGlobal

[email protected]$Tel:$+44$(0)$7770$382256$Skype:$patrickcrawford$

www.cdsb.net'

@CDSBGlobal'

Climate'Disclosure'Standards'Board'

facebook.com/CDSBGlobal'

Subscribe'to'our'newsleuer'by'emailing'[email protected]'

Thank'you'

Date post:	17-Jan-2015
Category:	Technology
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Integrating climate change information into mainstream corporate reports, Americas focus

Technology