Michael Zimonyi's presentation on risk reporting for the XBRL Europe conference in May 2014.

1. @CDSBGlobal www.cdsb.net 1
Environmental
risk
repor0ng
in
annual
reports
Michael
Zimonyi
Project
Officer,
Climate
Disclosure
Standards
Board
XBRL
Europe
workshop
|
5th
May
2014

2. @CDSBGlobal www.cdsb.net 2
Outline
+ Introduc0on
+ About
the
Climate
Disclosure
Standards
Board
+ Emerging
external
repor0ng
drivers
+ CDSB
Framework
+ Concluding
remarks

3. @CDSBGlobal www.cdsb.net 3
“It
is
increasingly
understood
that
financial
statements
capture
less
than
20%
of
corporate
risks
and
value
crea<on
poten<al”
–
MaR
Christensen,
Execu0ve
Director
European
Sustainable
Investment
Forum
Introduc0on

4. @CDSBGlobal www.cdsb.net 4
Introduc0on
+ Financial
statements
capture
less
than
20%
of
corporate
risks
(Eurosif,
IIRC)
+ Increasing
impact
of
climate
change
on
decisions
and
ac0ons
by
management,
investors
&
other
stakeholders
+ Increasing
ESG
repor+ng
requirements
–
UK,
France,
EU,
South
Africa,
US?
+ Increasing
requirement
to
integrate
ESG
informa0on
with
financial
repor0ng

5. @CDSBGlobal www.cdsb.net 5
Breakdown
of
environmental
risk
Aiming
for
natural
capital
repor<ng
38%
climate
change
25%
water
16%
forest
risk
commodi0es

6. @CDSBGlobal www.cdsb.net 6
Water
risk

7. @CDSBGlobal www.cdsb.net 7
Forest
risk

8. @CDSBGlobal www.cdsb.net 8
Climate
change
risk

9. @CDSBGlobal www.cdsb.net 9
About
the
Climate
Disclosure
Standards
Board
+ CDSB
is
a
consor0um
of
business
and
environmental
organiza0ons
formed
at
the
2007
World
Economic
Forum’s
annual
Davos
mee0ng
+ CDP
has
provided
secretariat
support
since
incep0on
and
coordinates
day-­‐to-­‐day
ac0vi0es
Who
we
are

10. @CDSBGlobal www.cdsb.net 10
About
the
Climate
Disclosure
Standards
Board
Who
we
are
+ Supported
by
leading
industrial
&
financial
services
companies,
NGO
representa0ves,
the
major
accoun0ng
firms,
professional
bodies,
academics
and
other
specialist
collaborators

11. @CDSBGlobal www.cdsb.net 11
About
the
Climate
Disclosure
Standards
Board
+ CommiRed
to
the
integra0on
of
climate
change
related
informa0on
into
mainstream
corporate
repor+ng
+ Working
with
others
What
we
do

12. @CDSBGlobal www.cdsb.net 12
About
the
Climate
Disclosure
Standards
Board
+ Engaging
with
Governments,
regulators
and
stock
exchanges
to
develop
best
prac0ce
in
non
financial
repor0ng
What
we
do

13. @CDSBGlobal www.cdsb.net 13
Emerging
sustainability
repor0ng
requirements
+ Australia
ASX
corporate
governance
guidelines
+ Danish
Financial
Statements
Act
+ EU
Accoun0ng
Direc0ves
+ French
Grenelle
II
+ South
African
King
Code
+ UK
Companies
Act
+ US
SEC
Regula0on
S-­‐K
Mandatory
repor<ng

14. @CDSBGlobal www.cdsb.net 14
Emerging
sustainability
repor0ng
requirements
Changes
to
EU
accoun<ng
direc<ves

15. @CDSBGlobal www.cdsb.net 15
Emerging
sustainability
repor0ng
requirements
+ 6,000
companies
+ Loca0on
of
non
financial
statement
+ Content:
+ Policies,
results,
risks,
due
diligence
+ Environmental
(plus
social,
employee,
human
rights,
an0-­‐corrup0on,
bribery)
+ The
use
of
renewable
and
non-­‐renewable
energy,
greenhouse
gas
emissions,
water
use
and
air
pollu0on
+ Confirma0on
of
specific
disclosure
requirements
to
follow
Changes
to
EU
accoun<ng
direc<ves

16. @CDSBGlobal www.cdsb.net 16
CDSB
Repor0ng
Framework
+ Prepare
&
present
environmental
performance
&
risk
informa0on
in
mainstream
financial
reports
+ Designed
to
allow
investors
to
assess
the
rela0onship
between
environmental
performance
&
risks
and
the
organisa0on’s
strategy
&
prospects
+ Cross
referencing
other
repor0ng
requirements
(CDP
CC4)
CDSB
Framework
focuses
on
iden<fying
environmental
risk
in
mainstream
reports
Informa0on
in
CDP
and
other
disclosures
CDSB
Framework
Annual
Report

17. @CDSBGlobal www.cdsb.net 17
CDSB
Repor0ng
Framework
+ Focus
of
previous
CDSB
Framework
on
climate
change
risks
&
opportuni0es
affec0ng
an
organisa0on’s
strategy
and
financial
performance
+ Scope
has
now
expanded
into
forest
commodity
risks
and
water
+ The
expansion
of
the
CDSB
Framework
will
now
cover
79%
of
natural
capital
Aiming
for
natural
capital
repor<ng

18. @CDSBGlobal www.cdsb.net 18
The
climate
change
repor0ng
taxonomy

19. @CDSBGlobal www.cdsb.net 19
Climate
Change
Repor0ng
Framework
(HOW
to
report)
CDP
informa0on
request
(WHAT
to
disclose)
Requirements
–
subject
maRer

20. @CDSBGlobal www.cdsb.net 20
20
Requirements
–
subject
maRer,
other

21. @CDSBGlobal www.cdsb.net 21
Technical
Working
Group

22. @CDSBGlobal www.cdsb.net 22
Climate
Change
Repor+ng
Taxonomy
CDP
CDSB
Strategic
analysis,
risk
and
governance
Greenhouse
gas
emissions
Introduc0on
Governance
Strategy
Targets
and
ini0a0ves
Communica0ons
Risks
Opportuni0es
Emissions
methodology
Emissions
data
S1
breakdown
…
What
does
it
look
like?
Basic
architecture

23. @CDSBGlobal www.cdsb.net 23
XBRL
in
prac0ce

24. @CDSBGlobal www.cdsb.net 24@CDSBGlobal
@CDSBGlobal
Climate
Disclosure
Standards
Board
facebook.com/CDSBGlobal
Subscribe
to
our
newsleRer
at
cdsb.net/newsleRer
Thank
you
Michael
Zimonyi
Project
Officer
michael.zimonyi@cdsb.net
Tel:
+44
(0)
7415
7121
Skype:
mikezimonyi