environmental reporting - forests

October 2015 | Tweet @CDSBGlobal

Environmental Reporting - ForestsCurrent landscape, the CDSB Framework and future developments


Agenda

1. About us

2. Current Activity

3. The CDSB Framework

4. The Future

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About us


CDSB

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We are committed to advancing and aligning the global mainstream corporate reporting model to equate natural capital with financial capital.


Current Activity


Corporate Commitments7

• The Consumer Goods Forum Board of Directors committed their 400

members, representing a combined procurement power of over $3 trillion,

to achieving zero net deforestation in their supply chains by 2020,

• The 'Soft Commodities' Compact client-led initiative aims to mobilise the

banking industry to help transform soft commodity supply chains, helping

corporate clients to achieve zero net deforestation by 2020,

• Commit to Action campaign: over 214 corporate signatories, a total of 400

commitments, including 30 to remove commodity-driven

deforestation,

• UN-PRI’s Sustainable Palm Oil Investor WG and UN-PRI Principles

for Sustainable Farming,

• Corporate commitments to zero-deforestation and sustainable

procurement practices (e.g. Unilever, Kellogg’s, Danone, L’Oreal etc.).


Agreements and Policy8

• Aichi Biodiversity Targets Target 5 - By 2020, the rate of loss of all natural

habitats, including forests, is at least halved and, where feasible, brought close

to zero, and degradation and fragmentation is significantly reduced,

• Amazon Cooperation Treaty Organization,

• EU - Deforestation commitments: Halting global forest cover loss by 2030 -

Reducing deforestation by at least 50 % by 2020,

• Indonesia - National framework for REDD+ programs related to enforcement,

safeguards, baselines, measuring and verification standards,

• Brazil - Action Plan for the Prevention and Control of Deforestation in the Legal

Amazon.


Reporting Requirements9

• EU - Non-Financial Reporting Directive (2014/95/EU),

• UK - Companies Act 2006 (Strategic Report and Directors' Report) Regulations

2013 and Defra,

• Danish - Financial Statements Act,

• India - National Voluntary Guidelines on Social, Environmental & Economic

Responsibilities of Businesses,

• French - Grenelle II,

• Hong Kong Exchange - Environmental, Social and Governance (ESG)

Reporting Guide and ,

• Bursa Malaysia – Listing requirements,

• Singapore Exchange - Guide to Sustainability Reporting for Listed Companies.


Changing disclosure landscape

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• Explosion of mandatory / voluntary reporting provisions

• Confused and complex reporting landscape

• Difficulty understanding what and how to disclose

• National and regional variations

• Different audiences –investors, customers, stakeholders


Reporting Landscape Mapping

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The Reporting Exchange is a freely

available, collaborative, global

knowledge platform to help business

users prepare sustainability information for

voluntary, compliance, or mainstream

reporting purposes.

Find out more at reportingexchange.com


The CDSB Framework


Objectives of the Framework

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• Align with the mainstream reporting model,

• Encourage standardization of environmental & natural capital reporting,

• Clear, concise and comparable presentation,

• Connect environmental performance with overall strategy, performance and

prospects,

• Simplify the reporting process,

• Support compliance,

• Support assurance activities.

Introduction to the CDSB Framework


CDSB Framework 101

Introduction to the CDSB Framework 14

Environmental information

(CDP, GRI, SASB, ISO 26000, UNGC)

CDSB Framework

Annual Report / Integrated Report(MD&A, Form 10-K/20-F, Lagebericht, Form 56-1)


Making the connections


Policies, strategy and targets

CDSB Framework for reporting

environmental information &

natural capital

REQ-01

CDP Information Request (2015) F8.1, F8.2, F8.3, F8.4, F9.1, F9.2, F9.3, F9.4, F9.5, F9.6, F10.5

GRI (G4) Sustainability Reporting

Guidelinespp 8, 12, G4-1, G4-2, G4-15, G4-16, G4-27, G4-EN13, G4-EN29, G4-EN31, G4-EN33, G4-DMA

IIRC <IR> Framework § 3.3-3.5, 3.10-3.16, 4.27-4.29, 4.53-4.56

ISO 26000 4.2, 4.3, 6.2.3.2, 6.5.5.2.1, 6.5.5.2.2, 6.5.6.2, 7.3.2.1, 7.4.2, 7.4.3, 7.5.3 (Box 15)

OECD Guidelines for Multinational

Enterprises Part II (A5, A8, A12-15, B2), and VI (1-8)

UN Principles for Responsible

InvestmentP1, P2, P3, P4, P5, P6

UN Global Compact Principles P7, P8, P9

The German Council for

Sustainable Development (RNE)

Sustainability Code

Clauses 1, 3, 4, 7, 12, 19

South Africa King Code III P3.4, 5.2, 9.2

Danish Financial Statements Act

2008Article 99a para 1, 2 1), 2 2), 3

EU NFR Directive 2014/95/EU 6

EU Amendments to Accounting

Directive 2013/34/EUArticle 19a 1(b, c, e) and Article 29a 1(b, c, e)

French Grenelle II 2010 Article 75 & 225

UK Companies Act 2006 (Strategic

Report and Directors’ Report)

Regulations 2013

P2 4A 414C (7) (b)


The CDSB Framework

• 7 guiding principles

• 12 reporting requirements

• Refers to guidance on climate, forests, and water

• Aligns with CDP, GRI, SASB and others to support inclusion in mainstream reports

• Covers all key environmental requirements prescribed by current and upcoming legislation (e.g.: EU Non-Financial Reporting Directive)

for reporting environmental information & natural capital


cdsb.net/Framework

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The CDSB Framework

Environmental Information:

• Environmental impacts and

dependencies

e.g. use of renewable and non-renewable

resources, land-use change & forestry,

emissions to air, land and water, water use

and consumption, waste and spillages, etc.

• Environmental risks & opportunities

• Environmental policies, strategies and

targets

• Performance against environmental

targets

Forests & Resources


Resource examples:

• CDP forests information request

and guidance

• Roundtable on Sustainable

Biomaterials guidelines

• UN Global Compact ‘A Guide to

Traceability: A Practical Approach

to Advance Sustainability in Global

Supply Chains’

• UN Food and Agriculture

Organisation climate change

guidelines for forest managers

• WBCSD Sustainable Procurement

Guide for wood and paper-based

products

• WWF Palm Oil Buyers Scorecard


Principles

P1 Environmental information shall be prepared applying the principles of relevance and materiality

P2 Disclosures shall be faithfully represented

P3 Disclosures shall be connected with other information in the mainstream report

P4 Disclosures shall be consistent and comparable

P5 Disclosures shall be clear and understandable

P6 Disclosures shall be verifiable

P7 Disclosures shall be forward looking


How to report


Requirements

REQ-01 Management’s environmental

policies, strategy and targets

REQ-02 Risks and opportunities

REQ-03 Governance

REQ-04 Sources of environmental impact

REQ-05 Performance and comparative

analysis

REQ-06 Outlook

REQ-07 Organisational boundary

REQ-08 Reporting policies

REQ-09 Reporting period

REQ-10 Restatements

REQ-11 Conformance

REQ-12 Assurance


What to report


Policies, strategy and targets

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F8.1 Does your organization have a policy that recognizes the role of

reducing deforestation in climate change mitigation and sets out clear

goals and guidelines for action?

F8.2 Has your organization made a commitment to reduce or remove

deforestation and forest degradation from your direct operations and/or

supply chain?

F8.4 Do you have commodity specific sustainability policies?

REQ-1 Disclosures shall report management’s environmental policies,

strategy and targets, including the indicators, plans and timelines used to

assess performance.

CDP

CDSB



Example – Mondi

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The future


Natural Capital Accounting

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Outside-in framing

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Contact

Luke Blower, Technical Officer

E: [email protected]: +44 (0) 20 381 83939 | www.cdsb.net

environmental reporting - forests

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