The statement, signed at the time of the launch of the CDSB Reporting Framework for environmental and natural capital information, sets out how CDSB and the IIRC collaborate.
CDSB and the IIRC share a vision of a corporate reporting regime that will deliver the high quality information needed for decision-making in the 21st Century.
Both organizations believe that climate change and the protection of natural capital are core issues for business and that relevant disclosures about both can provide valuable insight into corporate performance as part of an organization’s mainstream reporting. In this regard, the IIRC welcomes the initiative taken by CDSB and its signatories to publish a Reporting Framework to guide disclosure of information on natural capital through mainstream reports.
CDSB and the IIRC acknowledge the complementarity of their respective roles, on the basis that reporting corporate dependencies and impacts on natural capital is integral to Integrated Reporting (<IR>) and a key pillar on which <IR> is based.
CDSB and IIRC agree that they have complementary roles in championing the link between corporate reporting and sustainable capital markets. In particular, climate change is likely to have a wider impact on the strategy and business models of business over time, requiring organizations to respond through integrated thinking and more focus on its relevance to long-term value creation.
They also believe that <IR> acts as an ‘umbrella’ for dialogue on corporate reporting. They therefore participate in the Corporate Reporting Dialogue alongside other organizations that issue reporting standards and frameworks with international impact. The organizations involved share a common interest in <IR> and in improving the quality and consistency of global corporate reporting to provide increased certainty for businesses and investors alike.
Through this statement, the IIRC and CDSB renew their commitment to working together bilaterally and with other standard and framework generators to promote coherent and aligned corporate reporting frameworks, consistent with a vision to align corporate behaviour and capital allocation to wider goals of financial stability and sustainable development.