What is the CDSB Framework?
The CDSB Framework for reporting environmental and climate change information is designed to help organizations disclose environmental information in mainstream reports. This benefits investors looking to partner with environmentally-conscious, sustainable businesses. It also allows investors to assess the relationship between specific environmental matters and the organization’s strategy, performance and prospects. It is designed around the recommendations of the Task Force on Climate-related Financial Disclosures and other key mainstream reporting requirements, aiming to streamline the reporting cycle for businesses everywhere.
If you fail to align your organization with the CDSB Framework, you’re missing out on a significant competitive advantage. Not only will you boost your stock value to investors by demonstrating your dedication to sustainable practices, but you’ll also acquire customers who share those values. Without reporting, you risk losing stakeholder and customer trust and ultimately put your reputation on the line.
When it comes to any ESG reporting process, there is always the risk of negligence and/or fraud. In your 10K and 10Q, there is a risk that the person making the disclosure isn’t actually aware of all of the risks they are claiming. Without ensuring that this person has confidence in what they are disclosing, even if they don’t know, they are still signing off on it and will face the penalties of negligence. When it comes to fraud, if you misrepresent your company with ESG data, your stock will go up artificially. This type of fraud puts you at risk of hefty fines, penalties, lawsuits or worse.
Lastly, aligning with the CDSB Framework inherently keeps you ahead of regulatory and policy changes, identify emerging risks and notice areas for improvement. Failure to examine your organization under this critical lens leads to failure to examine areas for improvement for your business, which ultimately hinders your success.