CDP and the IIRC work together as strategic partners. They share a vision of the evolution of corporate reporting for the 21st century in which the alignment and clarity of corporate reporting frameworks, standards and requirements drive coherence, consistency and comparability. In turn, this will lead to improved efficiency and effectiveness in corporate reporting practices.
Both parties believe that climate change and the protection of natural capital are core issues for business, and that relevant disclosures about both can provide valuable insight into corporate performance as part of an organization’s mainstream reporting.
CDP and the IIRC acknowledge the complementarity of their respective roles, on the basis that reporting on the use and depreciation of natural capital is integral to Integrated Reporting (<IR>) and a key pillar on which <IR> is based. The IIRC sees CDP as pioneering the integration of non-financial with financial reporting (with over 4,500 companies representing approximately 60% of global market capitalization disclosing through CDP in 2013).
Both agree that they have complementary roles in championing the link between corporate reporting and sustainable capital markets. CDP’s aim is to prevent dangerous climate change and protect natural capital. In particular, climate change is likely to have a wider impact on the strategy and business models of business over time, requiring organizations to respond through integrated thinking and more focus on its relevance to long-term value creation.
They also believe that <IR> acts as an ‘umbrella’ for dialogue on corporate reporting. They therefore participate in the Corporate Reporting Dialogue (CRD) alongside other organizations that issue standards and frameworks with international impact. The organizations involved share a common interest in <IR> and in improving the quality and consistency of global corporate reporting to provide increased certainty for businesses and investors alike.