CDSB Launches Framework for Natural Capital Reporting

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The Climate Disclosure Standards Board has launched a framework for reporting natural capital and environmental information in mainstream corporate reports for the benefit of investors.

The framework, which became available Monday, will rely on methodologies such as the emerging natural capital protocol and is designed to fill the current gap in international accounting standards, the CDSB says.

The CDSB's end goal is for more robust environmental reporting to encourage investors to recognize the dependence and impacts for economic and financial stability on natural capital.

The CDSB framework builds on the Climate Change Reporting Framework, which is used to prepare detailed disclosures on climate change-relation information in mainstream corporate reports. Its also designed as a complement to the Natural Capital Protocol, a a framework backed by the United Nations Environment Programme and the World Bank’s International Finance Corporation that standardizes how the economic value of natural resources is accounted for and valued.

In May, the biggest global names in corporate reporting — CDP, the Global Reporting Initiative, the Climate Disclosure Standards Board, the Financial Accounting Standards Board, IASB, ISO, SASB and the International Integrated Reporting Council — published a landscape map that provides a snapshot of a comparison of their frameworks, standards and related requirements through the lens of integrated reporting.

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