On 3 November 2021 at the COP26 climate conference the IFRS Foundation Trustees announced the consolidation of the Value Reporting Foundation (VRF) and the Climate Disclosure Standards Board (CDSB) into the IFRS Foundation. It is expected that the consolidations will be completed during 2022.
The CDSB is an international consortium of business and environmental NGOs, committed to advancing and aligning the global mainstream corporate reporting model to equate natural capital with financial capital.
CDSB does this by offering companies a framework for reporting environment- and social-related information with the same rigour as financial information. In turn this helps them to provide investors with decision-useful environmental information via the mainstream corporate report, enhancing the efficient allocation of capital. CDSB’s Framework and other guidance are used by businesses globally both on a voluntary basis and to comply with regulatory requirements.
ISSB’s standards will build on existing frameworks and guidance, so companies should continue using the CDSB and VRF’s frameworks and guidance as appropriate. Efforts put into reporting on sustainability matters now is expected to help companies implement the ISSB’s standards in the future.