TCFD, SASB, and CDSB Frameworks
TCFD (Task Force on Climate-related Financial Disclosures)
TCFD is a framework established by the Financial Stability Board (FSB) to help organizations disclose climate-related financial risks and opportunities in a consistent and comparable manner. TCFD provides recommendations for organizations to report on four key areas: governance, strategy, risk management, and metrics and targets. TCFD disclosure is primarily focused on climate-related issues and their financial implications.
SASB (Sustainability Accounting Standards Board)
SASB provides industry-specific sustainability reporting standards that help organizations identify, manage, and communicate financially material ESG factors. SASB’s framework covers a wide range of industries and sectors, providing guidance on the disclosure of sustainability information that is material to investors. SASB standards are designed to be sector-specific and financially focused.
CDSB (Climate Disclosure Standards Board)
CDSB is an organization that focuses on providing a framework for disclosing environmental information in mainstream financial reports. CDSB’s framework is designed to help organizations disclose climate-related and environmental information in their annual financial reports. It aims to promote transparency and consistency in disclosing environmental data, including climate-related risks and opportunities.
Compliance with these frameworks typically involves adopting their guidelines and recommendations for reporting on relevant ESG issues. Many organizations choose to align their reporting with one or more of these frameworks to enhance transparency, improve risk management, and meet the growing demand from investors, regulators, and stakeholders for standardized ESG disclosures.
In practice, an organization may choose to adopt TCFD for climate-related financial disclosures, SASB for industry-specific sustainability reporting, and CDSB for environmental disclosures, depending on its goals and the expectations of its stakeholders. Compliance with these frameworks can enhance an organization’s ability to communicate its ESG performance and impact to a broader audience and demonstrate its commitment to sustainability and responsible business practices.
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Jurcom follows closely TCFD, SASB, and CDSB framework advancements and consults clients with required steps. Contact us today for more information.