Frequently asked questions
General
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Client Disclosure Reporting (CDR) is an easy to use reporting method that helps professional service businesses understand and share their revenue breakdown by industry.
By anonymising client and company data (no names or revenue figures are ever published), Client Disclosure Reporting is an effective way for businesses to enhance their reputation with clients and talent while maintaining confidentiality.
Find out more about the Client Disclosure Reporting methodology here.
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Client Disclosure Reporting (CDR) is a transformative methodology designed to enhance transparency and accountability in the professional services industry. By requiring professional service providers to disclose their client industries and revenue sources, CDR empowers stakeholders to make informed choices about which professional services providers to work with. This increased transparency enables stakeholders to:
– Align with clients that prioritise sustainability.
– Select service providers that align with their values and goals.
– Minimise exposure to problematic industries and reduce the risk of reputational damage.
– CDR aims to foster trust, drive positive change, and promote a more sustainable business landscape.
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All professional service providers, regardless of size, location or industry. We see “professional service providers” as any individual or business providing specialised expert knowledge in a given field to a client or customer to help them achieve a goal or run a project. This can be anything ranging from creative and advertising agencies to financial advisors, legal, IT, logistics and much more.
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The Client Disclosure Reporting methodology itself is completely free to download and use. However, there may be internal costs for your company associated with data collection, analysis, and reporting.
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Please send your report to hello@clientdisclosurereporting.org and it will be published on the official CDR website.
You can also publish your CDR within your company's overall impact or annual reports, or on your own website and marketing channels. Your report will be yours to share as you like.
As well as sharing across your own channels, you can also share your Client Disclosure Report on websites like the Impact Reporting Archive.
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The Client Disclosure Reporting methodology is guided by the principles of universality, comparability, accountability, and objectivity. These principles ensure credible reporting and facilitate comparisons between professional service providers.
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Client Disclosure Reporting (CDR) ensures comparability between different professional service providers by using standardised reporting formats, metrics, and data presentation.
This allows stakeholders to easily compare professional service providers' disclosures and assess their environmental and social impacts. By promoting consistency and transparency, CDR facilitates a level playing field and drives positive change in the professional services industry.
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Client Disclosure Reporting ensures accountability for professional service providers by requiring them to disclose their client industries and revenue source. This transparency empowers stakeholders to assess the potential environmental and social impacts of a professional service provider's work and hold them responsible for their actions.
By disclosing their client base, professional service providers are encouraged to align their practices with sustainability goals, contributing to a more responsible and sustainable professional services industry.
Methodology
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Enhance reputation and trust
With ethical drivers becoming increasingly important in B2B and consumer decision-making, demonstrating your commitment to transparency and accountability has never been more important. Client Disclosure Reporting is an easy, and zero-cost way to show your stakeholders that you care about running your business in a transparent and ethical way.
Attract and retain talent and clients
Opening the doors of your business through Client Disclosure Reporting is a great way to differentiate your business — attracting and retaining clients and talent who are increasingly prioritising partners and employers who share their values.
Identify business opportunities
With 45% of professional services businesses still prioritising leads manually (Salesforce Trends in Professional Services, 2020), Client Disclosure Reporting can give you an edge over your competition. By analysing your business’s client and revenue mix, you’ll be able to more easily see gaps in your current client base, and identify new opportunities and areas for growth.
Reduce business risk
By understanding your client industry mix better, you can better mitigate against exposure to problematic industries, future-proof against potential risks, and reduce the risk of reputational damage.
Get ahead of reporting requirements
With some professional services businesses already facing mandatory reporting requirements, many others are seeing requests in RFPs and from existing clients to report on their voluntary commitments to environmental and social wellbeing. Quick and easy to complete, a Client Disclosure Report is a simple way to demonstrate your commitment to transparency and responsible business when you tender for work.
Visit our case studies page to find out how other businesses are already benefiting from Client Disclosure Reporting. -
Simple and free to use
Asking your suppliers for a Client Disclosure Report as part of your procurement process is a simple way to build trust with stakeholders and to demonstrate your commitment to supply chain transparency and accountability, as well as reducing reputational risk by ensuring our own values are aligned with those of the companies you work with.
Plus, it’s free and easy for suppliers to complete, and won’t get in the way of your existing procurement processes.
Build trust
Businesses and organisations today are facing a significant trust gap, as study after study shows declining levels of trust from investors, customers, and employees, at the same time as finding trust to be a more and more important factor in decision-making.
Demonstrate transparency
Stakeholders now demand more than just financial performance; they want businesses to actively address global challenges, and expect transparency on companies’ commitments to sustainability, environmental responsibility, social wellbeing, and ethical practices.
Check out our Resources page to see our Guide on how to include Client Disclosure Reporting in your Procurement processes.
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CDR can contribute to a more sustainable future by:
Empowering stakeholders: CDR empowers stakeholders to make informed decisions and hold professional service providers accountable for their actions. This can lead to increased pressure on professional service providers to adopt sustainable practices and contribute to a more sustainable future.
Encouraging professional service providers to align with sustainable practices: By disclosing their client industries and revenue sources, professional service providers can identify potential risks associated with their client base and take steps to mitigate them.
Promoting transparency and accountability: This can help to create a more responsible and sustainable business environment, where professional service providers are held accountable for their actions and encouraged to adopt ethical practices.
Driving industry-wide transformation: As more professional service providers adopt CDR, it can create a new standard for transparency and sustainability across the $6 trillion professional services industry.
Benefits and impact
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Visit our Resources page for the clearest view on how to complete your Client Disclosure Report.
Professional service providers can implement the Client Disclosure Reporting methodology by following the Step-By-Step Guide provided in the Client Disclosure Reporting methodology and available on the Resources page. This guide covers data collection, analysis, and reporting, providing a clear framework for professional service providers to follow.
Additionally, professional service providers can use the handy Client Disclosure Reporting Spreadsheet Tool (also available on the Resources page) to efficiently collect, organise, and analyse client-related data for CDR purposes. Seeking guidance from experts or industry organisations can also provide valuable support and insights.
And don’t forget to Register for your FREE 121 consultation with our team!
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Professional service providers should collect the following types of client data for Client Disclosure Reporting:
Client and organisational type: Whether the client is a for-profit organisation, non-profit organisation, or governmental organisation.
Revenue share: The percentage of the professional service provider's total revenue generated by each client.
Industry classification: The primary industry or sector in which the client operates, using standardised classification systems like Global Industry Classification Standard (GICS®) or International Classification of Nonprofit Organisations (ICNPO).
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While Client Disclosure Reporting (CDR) is built on the robust and recognised classification systems of GICS® and ICNPO, professional service providers may face challenges when implementing it:
Self-reporting bias: CDR relies on self-reported data, which can introduce potential biases or inaccuracies.
Complexity of diversified companies: Assigning a single GICS® or ICNPO code to companies with diverse operations can be challenging and may not fully capture their activities.
Subjectivity in code selection: The process of assigning GICS® or ICNPO codes can involve some level of subjectivity, potentially influenced by the professional service provider's perception of its clients or desire to present a specific image.
Focus on revenue-generating work: CDR focuses on paid client work, potentially excluding pro-bono projects that may be considered problematic by some stakeholders.
Addressing these challenges requires careful consideration and may involve additional measures to ensure data accuracy, transparency, and inclusivity.
By Registering to be a part of our CDR community you’ll receive a FREE 121 consultation where we can cover any questions you might have along the way, and connect you to other business who’ve completed Client Disclosure Reports for many years.
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To ensure the accuracy and completeness of client data in a Client Disclosure Report, professional service providers should:
Establish data governance policies: Implement clear policies and procedures for data management, including data quality standards and ownership.
Conduct cross-assessments: Assess data quality to identify and address errors or inconsistencies.
Use data cleaning and deduplication tools: Remove duplicate records and correct errors to ensure data consistency.
Train employees on data entry and management: Ensure employees understand the importance of data accuracy and are trained on proper data handling procedures.
Document data sources and verification processes: Maintain records of data sources and verification methods to support data accuracy claims.
Consider using third-party data verification services: Outsource data verification to ensure accuracy and reduce the risk of internal bias.
By implementing these strategies, professional service providers can significantly improve the accuracy and completeness of their client data, enhancing the reliability of their Client Disclosure Reports.
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The Client Disclosure Spreadsheet Tool (available on our Resources page) is the simplest way to complete your Client Disclosure Report.
It works best in Microsoft Excel, but if you don’t have access to Excel, then we’ve created a Google Sheet (also available on our Resources page).
Step 1: Log in to your (or create) Google account
Step 2: Go to ‘File’ and select ‘Make A Copy’
Step 3: Within the copied version, follow the instructions on the ‘Start Here’ page of the Google Sheet.
It is important you make a copy of the Google Sheet, otherwise you’ll not be able to edit the document and input your data to great your CDR.
Implementation and adoption
Integration with other sustainability initiatives
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Client Disclosure Reports can supplement other sustainability reporting frameworks, such as ESG reporting or BCorp assessment, to provide a more comprehensive and holistic view of a professional service provider's impact. By combining CDR with these frameworks, professional service providers can:
Enhance transparency: Provide a more detailed and nuanced picture of their sustainability performance.
Demonstrate alignment with industry standards: Show that they are meeting or exceeding industry expectations for sustainability.
Strengthen stakeholder relationships: Build trust and credibility with stakeholders by providing a more complete understanding of their sustainability efforts.
Identify areas for improvement: Identify gaps in their sustainability performance and prioritise areas for action.
For example, CDR can be used to supplement ESG reports by providing more granular information on a professional service provider's client base and its alignment with sustainable practices. This can help stakeholders understand the specific environmental and social impacts of a professional service provider's operations and assess its overall sustainability performance.
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Client Disclosure Reporting can help professional service providers prepare for potential future regulations and regulatory changes by demonstrating their commitment to transparency and accountability.
By proactively disclosing their client industries and revenue source, professional service providers can anticipate and address potential regulatory requirements.
Regulatory changes or new regulations may require professional service providers to modify their CDR reporting practices but professional service providers that have already adopted CDR may be better positioned to adapt to these changes.
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Professional service providers can demonstrate the value of CDR by highlighting its unique focus on client industry information and its ability to provide a more granular view of a professional service provider's impact. Additionally, professional service providers can emphasise the importance of CDR in building trust with stakeholders and promoting accountability.
Check out our About page for all the benefits of Client Disclosure Reporting for professional service providers and clients.
Stakeholder engagement and communication
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Professional service providers can effectively communicate their Client Disclosure Reports to stakeholders by:
Tailoring messages: Adapt communication to the specific needs and interests of different stakeholder groups.
Using clear language: Avoid technical jargon and present information in a clear, concise manner.
Employing visual aids: Enhance understanding with charts, graphs, and other visuals.
Engaging stakeholders: Foster open dialogue, seek feedback, and involve stakeholders in the process.
By following these strategies, professional service providers can build trust, strengthen relationships, and drive positive change.
And check out our Resources page for more guidance.
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Professional service providers should convey the following key messages in their Client Disclosure Reports:
Transparent and accountable processes: Outline the professional service provider's internal governance and due diligence processes for client selection, risk assessment, and impact mitigation. Demonstrate a commitment to transparency and accountability throughout the process.
Data-driven insights: Provide a detailed breakdown of the professional service provider's client base using Global Industry Classification Standard (GICS®) or International Classification of Nonprofit Organisations (ICNPO) classifications, highlighting the revenue share for each industry. This data can offer valuable insights into the professional service provider's environmental and social impact.
Methodology and limitations: Explain the CDR methodology used, including assumptions, limitations, and potential biases. Reference the official CDR website for further information.
Accessibility and clarity: Ensure the report is clear, concise, and easily accessible to a wide audience. Use visuals and plain language to enhance understanding.
Future plans: Outline the professional service provider's plans for improving the sustainability of its client base and reducing its environmental and social impact. This demonstrates a commitment to continuous improvement.
By effectively conveying these key messages, professional service providers can build trust with stakeholders, demonstrate their leadership in sustainability, and drive positive change in the professional services industry.
Check out our About page for more information.
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Professional service providers can address potential concerns or criticisms from stakeholders regarding their Client Disclosure Reports by:
Proactively addressing concerns: Anticipate potential concerns and proactively address them in the report or through supplementary materials.
Engaging in open dialogue: Foster open communication with stakeholders, actively seeking feedback and addressing their questions directly.
Providing transparent explanations: Clearly explain the methodology used for data collection, analysis, and reporting, addressing any concerns about accuracy or completeness.
Demonstrating progress and commitment: Highlight the steps the professional service provider has taken to improve its sustainability performance and reiterate its commitment to continuous improvement.
Incorporating feedback: Consider incorporating stakeholder feedback into future CDR reports.
By adopting these strategies, professional service providers can build trust, strengthen relationships with stakeholders, and demonstrate their commitment to transparency and accountability.
Register to join our community of Client Disclosure Reporters and receive a FREE 121 consultation to go over any questions you might have.
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Professional service providers can effectively engage with stakeholders to promote the value of Client Disclosure Reporting by tailoring communication, utilising various channels, encouraging feedback, building relationships, highlighting benefits, providing case studies, and involving stakeholders in the process.
By adopting these strategies, professional service providers can build trust, credibility, and support for CDR, driving positive change in the professional services industry.
Check out our About page for more on the benefits of CDR and our Resources page for more guides & support.
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The Client Disclosure Reporting methodology was developed by Futerra Solutions Union through a collaborative effort involving industry experts, disclosure experts, and academics. The CDR methodology is regularly reviewed and updated to ensure its continued relevance and effectiveness. This process involves:
Periodic assessments: Regular assessments of the methodology to identify areas for improvement or adaptation.
Stakeholder input: Seeking feedback from stakeholders, including companies, investors, regulators, and other organisations.
Alignment with global standards and regulations: Ensuring that the CDR methodology is aligned with evolving global standards for reporting and reflecting changes in relevant regulations and industry practices.
Technological advancements: Incorporating advancements in data collection, analysis, and reporting technologies.
By following these steps, the CDR methodology is kept up-to-date and continues to provide a valuable tool for assessing service providers’ impact.
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The Client Disclosure Reporting methodology prioritises the protection of client privacy and confidentiality. No sensitive data about individual clients, such as their names, specific projects, or proprietary information, is being published as part of the CDR.
The data released is anonymised, providing only aggregated information, including the client's industry and the revenue share derived from their business with the service provider.
This approach ensures that client confidentiality is maintained while still providing valuable insights into the service provider's overall client base and revenue streams.
Governance
Can’t find what you’re looking for?
Visit our resources page where you can download everything you need to create your own Client Disclosure Report.
Or register for a free 121 support call to answer any questions you might have about Client Disclosure Reporting and to help you get started.