Global group to develop framework for climate change-related risk reporting

The World Economic Forum (WEF) has announced the formation of a new consortium, the Climate Disclosure Standards Board (CDSB), that will develop the framework for climate risk-related reporting by corporations. The focus will be on the disclosure of the following key climate issues in company annual reports: total emissions; assessment of the physical risks of climate change; and strategic analysis of climate risk and emissions management, according to a WEF release.CDSB members have agreed to report climate change-related information in a standardized way that facilitates easier comparative analysis by investors, managers and the public, says the press release. While awareness of climate change-related risks has been growing among corporations and their boards and shareholders, “reporting of comparable information in annual reports remains the exception rather than the rule.”Mindy S. Lubber, president of Ceres, said in a statement: “This initiative is a key step to improving and standardizing company disclosure on the risks and opportunities from climate change, whether from new regulations, physical impacts or growing global demand for clean technology products.”Members of the CDSB include the California Climate Action Registry, Carbon Disclosure Project, The Climate Group, International Emissions Trading Association, World Economic Forum Global Greenhouse Gas Register and the World Resources Institute. An advisory committee is being formed that will include industrial, financial services and accounting firms as well as other key stakeholders, according to the WEF.