Technical Workshop Corporate Climate Change Reporting: Towards consistent and targeted schemes OECD (Paris) 15th February 2012

Transcription

1 Technical Workshop Corporate Climate Change Reporting: Towards consistent and targeted schemes OECD (Paris) 15th February 2012 Lois Guthrie, Executive Director, The Climate Disclosure Standards Board

2 Climate change reporting An enabler for society s responses to climate change Physical Scientific, verifiable measurement Political To support political commitments, including rules for comparing emissions and removals with commitments Marketenabling Infrastructure for carbon markets Financial Accounting for rights & obligations under emissions trading schemes Social environmental Measurement, disclosure of and responsibility for climate change impacts by corporations Success relies on information 2

3 Climate Disclosure Landscape - Overview MANDATORY VOLUNTARY REPORTING NATIONAL,GLOBAL, INDUSTRY National Greenhouse & Energy Reporting Act 2007 (Australia) CARBON DISCLOSURE PROJECT ASTM Standards VERIFICATION CSR Guidelines India proactively respond to the challenges of climate change JVETS Bilan Carbone France DEFRA Guidelines (UK) Measures on Open Environmental Information (China) API/IPEICA STOCK EXCHANGES Act on Promotion of Global Warming Countermeasures (Japan) Financial Statements Act (Denmark) EU Emissions Trading Scheme CRC Energy Efficiency Scheme (UK) Canadian Environmental Protection Act Greenhouse Gas Mandatory Reporting Rule (USA) International Federation of Accountants STANDARDS AA1000 Australia Brazil Canada China Korea Malaysia Singapore South Africa Turkey Climate Change Response Act 2002 (NZ)

4 The reporting system Start here Objective of reporting Policy objectives Compliance requirements Stakeholder accountability Conformity with practice Review & use of reports Requirement to deliver Regulator Investor Other stakeholders NGO Assurance Clear content requirements Risks and opportunities Strategy and governance Greenhouse gas emissions Performance System for delivery & analysis System & standard for compliance Company resources & development availability of information systems management's view Methodologies Calculation requirements Relevance and materiality

5 ORCHESTRATION Why? (Compliance, accountability, stakeholder pressure etc) Who/what? (Scope, entities, supply chain & beyond?) Whether? (voluntary or mandatory) What? (content) How much? (compliance requirements) Where/in what format? (one/many reports) All the right notes but in the wrong order Financial accounting model Recognition (of what, for whom, by what part(s) of the organization? Measurement (by what or more method?) Accounting (timing, characterization, valuation) Disclosure (supporting information) Presentation (where and how)

6 CDSB- Mission to promote and advance climate change related disclosure in mainstream reports through the development of a global framework for corporate reporting on climate change.. Mainstream financial reports are the annual reporting packages in which certain companies are required to deliver their audited financial results under the corporate, compliance or securities laws of the territory or territories in which they operate. Climate change-related information the types of subject matter or information established by leading climate change initiatives as representing information of value to investors including strategic analysis, risk & governance and greenhouse gas emissions reporting.

7 CDSB membership & structure CDSB Board Carbon Disclosure Project (Secretariat) CERES, The Climate Group The Climate Registry International Emissions Trading Association World Economic Forum (Convenor) World Resources Institute World Business Council Sustainable Development Secretariat (Carbon Disclosure Project) Technical Working Group Accounting firms, their professional bodies, academics & UK Government official Advisory Group Leading industrial corporations, NGOs, Law firms

8 Why is consistency of approach important? Reduce complexity and cost and reporting burdens for preparers of information; Enhance the usefulness and comparability of information for users; Help to create the common language for reporting that is necessary for understanding; Align internal and external reporting and the interests of information preparers and users; Provide the clarity and rigor that is necessary for compliance, assurance; Link trading and tax schemes Level the playing field BUT there can be diversity within unity

9 Technical challenges Organizational boundaries Accounting for net environmental impacts Accounting for rights & obligations under ETSs Materiality (determination and expression) Leakage & responsibility (including leased assets) Performance metrics Interactive language for analysis & exchange of data GHG emissions measurement & reporting Assurance and verification Transitional arrangements Corporate inventory vs multiple disclosure requirements Characterization of carbon things vs policy objectives

10 Organizational boundaries Operational control Products and services Accountability Investments Financial control

11 Challenges flexibility prescription

12 Questions 1. What are the challenges and benefits of the existing GHG measurement and reporting schemes for different actors? 2. Do existing reporting schemes target information that is useful for investors, governments and companies? 3. What has been your experience of collecting and using information? 4. How useful are existing schemes for achieving performance targets?

13 Thank you Engagement and feedback please