Responses from the Participants to key messages from stakeholder engagement
In the table below, the Participants respond to each of the key messages from the stakeholders gathered from the online surveys and roundtables. For each key message, the Participants set out what they have done so far and what they hope to achieve with the Project in the future, as well as explaining their limitations and what they cannot do.
|Key message from stakeholders||Response from the Participants|
|The market would benefit from greater clarity on the interconnections and complementarity of the Participants’ frameworks and standards.||The detailed results of the mapping show how the Participants’ frameworks and standards interconnect and complement one another in relation to the TCFD recommendations. More broadly, the FAQs developed and included in this report set out how the frameworks and standards can be used together in various reporting scenarios. Going forward, the Participants have identified developing a taxonomy and an online, interactive tool as key areas for future work to better explain how their frameworks and standards interconnect and harmonise.|
|The Participants’ could better support TCFD reporting with further alignment as well as guidance for specific issues, such as scenario analysis.||The mapping shows that the Participants’ frameworks and standards are well-aligned with the disclosure principles, recommended disclosures and illustrative example metrics of the TCFD. These results and the further guidance provided in this report additionally offer a means of understanding how the frameworks and standards can be used complementarily to report on climate-related financial risks and opportunities effectively and efficiently in the mainstream annual report. In addition, the Participants have individually and collaboratively produced further TCFD guidance, such as CDSB and SASB’s TCFD Implementation Guide or CDP’s Technical Note on Scenario Analysis.|
|The connection between ESG and financial information needs to be better articulated.||The report offers a concise overview of the connection between ESG and financial information. In addition, the mapping shows how each of the frameworks and standards covers the reporting of climate-related financial information, in line with the TCFD. The report also details how such information can be included alongside other corporate disclosures in the mainstream annual report with use of CDSB and IIRC’s frameworks.|
|The market would benefit from greater alignment of the terminologies and methodologies in the Participants’ frameworks and standards.||The technical mapping offers stakeholders with a means of better understanding the differences that exist in terminology and methodology, and whether these differences are substantive to reporting. The Participants have identified developing a taxonomy and building an interactive, online tool to more clearly articulate and explain the connections that exist between the frameworks and standards in terms of terminology, methods and approaches as areas of future work for the Project.|
|The Participants should align efforts on specific ESG topics, such as climate change, water and human rights.||Participants have noted the areas highlighted by stakeholders and will take these into their considerations going forward. It should be noted that the Participants’ frameworks and standards, individually, cover many of these identified areas. In addition, a number of these topics are already addressed in co-operation between the Participants. For example, regarding water, where CDP and GRI work together. It is noted by the Participants that better communication about such joint efforts and wider collaboration is needed.|
|The Participants should collaborate and work towards greater alignment with the wider reporting ecosystem (e.g. other voluntary frameworks, indexes and survey providers).||The Participants agree that their frameworks and standards are part of a wider issue of complexity within the reporting landscape, with the Project responding to such demands. The results show the significant alignment that exists between the Participants’ frameworks and standards. As an initiative of the CRD, though, the Project does not have the remit to explore better alignment with the many other voluntary reporting frameworks, standards, indexes and surveys.|
|The Participants should explore the feasibility of a single reporting framework that meets the Participant framework stakeholders’ needs relative to the complementary use of their current standards and frameworks.||The Participants discussed the idea of a single framework as part of considering key areas for future work for the Project. The Participants considered how more formal alliances could benefit report preparers and users, but it was concluded that such a trajectory could not be completed within the
CRD given its composition and remit.
|The Participants should adopt a more sector-focused lens for specificity and comparability.||Given the differing nature of the frameworks and standards, some of which are sector-specific while others are not, the Participants do not believe that sector-specific alignment is an appropriate ambition for the Project. Both CDP and SASB offer sector-specific means of reporting on climate-related and broader ESG information. In 2019, GRI launched a Sector Program in which sector standards will be developed that identify and describe a sector’s impacts and stakeholder concerns from a sustainable development perspective.|
|Greater consideration should be paid to the applicability of the Project’s outputs to SMEs.||The first year of the Project centred on mapping and understanding the alignment between the Participants’ frameworks and standards and the TCFD recommendations, which are focused, primarily, towards large, listed companies. That said, the results of the mapping are relevant to the wide range of organisations that use different frameworks and standards. Similarly, the areas of future work identified for the potential next phase of the Project would be relevant for the broad range of organisations that use the Participants’ frameworks and standards.|
|The Participants should work more closely with regulators to improve the ESG reporting landscape.||All the Participants, alone or in collaboration when appropriate, work with and offer opinion and advice to regulators in the ESG reporting space.
The purpose of the Project is on promoting the coherence, consistency and comparability between the Participants’ reporting frameworks and standards,
and is not, therefore, focused on improving alignment beyond the Participants.