CDSB Framework for Reporting Environmental and Social Information
The CDSB Framework sets out an approach for reporting environmental and social information in mainstream reports, such as annual reports, 10-K filing, or integrated report.
The CDSB Framework for Reporting Environmental and Social Information is designed to help organisations prepare and present environmental and social information in mainstream reports for the benefit of investors. It allows investors to assess the relationship between specific environmental and social matters and the organisation’s strategy, performance and prospects.
The objectives of the CDSB Framework are to:
- Help companies translate their sustainability information into long-term value;
- Provide clear, concise and consistent information to investors, connecting the organisation’s sustainability performance to its overall strategy, performance and prospects;
- Enable and encourage informed investor-decision making on the allocation of financial capital; and
- Add value to an organisation’s existing mainstream report, while minimising the reporting burden and simplifying the reporting process.
The Framework also:
- Supports compliance with regulatory reporting requirements with current & emerging requirements for sustainability reporting, (e.g. the EU Non-Financial Reporting Directive);
- Forms part of the evidence base as the ISSB develops its IFRS Sustainability Disclosure Standards. The CDSB Framework and technical guidance on Climate, Water, Biodiversity and Social disclosures will remain useful for companies until such time as the ISSB issues its IFRS Sustainability Disclosure Standards on such topics;
- Aligns and complements the objectives of financial reporting by providing environmental and social information that is connected with financial information;
- Aligns with the recommendations of the Task Force on Climate-related Financial Disclosures;
- Builds on the most widely used reporting approaches, such as CDP, GRI, SASB, IFRS;
- Encourages standardisation of environmental and social information reporting;
- Supports the rigour that is appropriate for information provided to investors; and
- Helps prepare assurable reports.