The Corporate Reporting Dialogue – an initiative bringing together the major standard setters and framework providers globally – released a report today showing high levels of alignment between the frameworks on the basis of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. As part of the Dialogue’s Better Alignment Project, CDP, the Climate Disclosure Standards Board (CDSB), the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) collaborated intensively to assess alignment on the TCFD’s disclosure principles, recommended disclosures and illustrative example metrics.
The report was launched amongst businesses and investors at the World Economic Forum’s Sustainable Development Impact Summit, during Climate Week NYC, reaffirming the Dialogue participants’ commitment to respond to the urgent need to resolve the barriers to effective climate reporting.
Entitled “Driving Alignment in Climate-related Reporting”, the publication maps the Better Alignment Project participants’ standards and frameworks against the seven principles for effective disclosure, the 11 recommended disclosures and 50 illustrative example metrics detailed in the TCFD recommendations. It also documents the commonalities and differences between the Dialogue participants within the parameters of the TCFD recommendations’ example metrics.
The results of the technical mapping provide a practical guide to assist organizations in understanding and implementing the TCFD recommendations when using the participants’ well-established and globally applicable frameworks and standards.
The mapping showed strong alignment between the participants’ frameworks and standards and the TCFD recommendations, specifically:
- The TCFD’s seven ‘Principles for Effective Disclosures’ are harmonious and complementary with those of the participants’ frameworks and standards, with the mapping showing no sources of conflict.
- The participants are well-aligned with the TCFD’s 11 recommended disclosures, each of which is comprehensively covered by the frameworks and standards.
- Overall, 80% of the TCFD’s 50 illustrative metrics are fully or reasonably covered by CDP, GRI and SASB indicators.
- There are high levels of alignment between CDP, GRI and SASB for the TCFD’s illustrative example metrics, with 70% of the TCFD’s 50 metrics showing no substantive difference between the participants’ indicators. For the remaining 15 indicators, substantive differences are limited.
Ian Mackintosh, Chair of the Corporate Reporting Dialogue, commented: “This report is the first deliverable of the Better Alignment Project and I am delighted with the results presented. The actual alignment of the frameworks against the TCFD recommendations and between the frameworks is much higher than may have been envisaged prior to the start of the project.
The connections and cooperation between the operational teams of the framework organizations have developed significantly. This has not only led to a much deeper understanding of each other’s frameworks, but also has proven to be a strong basis for future work.
Relationships with critical senior stakeholders have also intensified. To me, it means that the Better Alignment Project has set the ground for a long-lasting change in the reporting landscape.”
Experts from CDP, CDSB, GRI, IIRC and SASB will review the Better Alignment Project report in interactive webinars on 10 October 2019 (repeated 8am / 4pm UK time). Webinar participants will be invited to share their views on the report and engage with the experts to ensure that the work of the Corporate Reporting Dialogue remains grounded in the needs of the market.