18th July 2013: CDP, the Climate Disclosure Standards Board (CDSB) and the International Integrated Reporting Council (IIRC) today announce an alliance that will achieve greater momentum towards the evolution of better corporate reporting, in order to enable investors and other decision-makers to accelerate a transition to a resource-efficient economy.

The parties share a vision of corporate reporting for the 21st century in which harmonization and clarity of corporate reporting frameworks, standards and requirements that drive coherence, consistency and comparability lead to improved efficiency and effectiveness in corporate reporting practices. The Memorandum of Understanding (MoU) cements a powerful collaboration that demonstrates their complementary roles, on the basis that reporting on the use and depreciation of natural capital - including carbon, energy, water and forest commodities, is integral to integrated reporting (<IR>) and a key pillar on which <IR> is based.

CDP’s chief executive officer Paul Simpson says: “CDP operates on the principle that capital markets need high quality information on corporate impacts on carbon, water and forests. Partnering with the IIRC is a natural step for us as we work to catalyze the adoption of this data into mainstream filings.
“Both organizations will work to promote the global harmonization and clarity of corporate reporting requirements in ways that drive consistency and comparability. This will improve the effectiveness of corporate reporting practices, benefitting companies and investors alike.”

Paul Druckman, chief executive officer of the IIRC says: “The express intention of the IIRC to work collaboratively with other reporting initiatives, frameworks and innovations is to provide greater clarity to the market and achieve greater momentum towards the adoption of Integrated Reporting. <IR> is not intended to supplant other non-financial disclosures, but to utilize these disclosures, through the application of the principles of <IR>.”

The IIRC’s draft Framework relies on existing reporting standards, guidelines and approaches, such as the Climate Change Reporting Framework, which was developed by CDSB, a CDP special project, in conjunction with a range of experts, including those from the global accounting profession.
Rick Samans, chairman CDSB, states: “When released, the IIRC Framework will provide organizations with the high-level, principles based information they need to prepare communications on how they create value. CDSB’s Framework provides part of the structured reporting environment that will support the principles- based <IR> Framework.”