CDP, an independent environmental disclosure system, has launched a platform to enhance the efficiency of reporting on climate and nature.
This move is poised to usher in a new era of streamlined disclosure and prompt action, as financial institutions with a record $142 trillion in assets demand robust climate and nature data.
The new platform is accessible to a record 75,000 requested companies, along with cities, states, and regions. It aims to ease the reporting burden and facilitate agile disclosures. The rising global mandatory climate disclosure legislation has prompted CDP to align its new questionnaire with IFRS S2, the International Sustainability Standards Board (ISSB) climate standard. This alignment serves as the foundational baseline for CDP’s climate disclosure.
Additionally, CDP has harmonised its questionnaire with other key standards, including the Taskforce on Nature-related Financial Disclosures (TNFD) and the European Union standards (ESRS). This alignment not only drives efficiency for disclosers and data users but also supports compliance efforts in countries representing nearly 55% of global GDP, which are seeking mandatory full alignment with ISSB Standards.
CDP’s latest analysis reveals that nearly 60% of listed companies are already reporting most of the data points aligned with IFRS S2. The streamlined questionnaire, which integrates climate, forests, water, biodiversity, and plastics, empowers organisations to better assess environmental risks, impacts, and opportunities across their operations, supply chain, and financial decisions. For small and medium-sized enterprises (SMEs), CDP has introduced a standalone questionnaire tailored to their resources and needs, aiming to build capacity across this critical segment of the global value chain.
CDP CEO Sherry Madera said, “Every dollar an organization spends on reporting is a dollar they cannot spend on action. This year, CDP is a better partner for corporates, cities, states and regions than ever before, making their disclosure even more efficient. There are compelling business reasons to disclose environmental data: securing access to capital, driving business efficiency and responding to growing compliance requirements. These demands for disclosure affect core business success both at home and abroad.
“CDP is proud of our partnerships with the ISSB, TNFD, EFRAG and other global frameworks to fulfil our role in the ecosystem, answering market demand for efficiency and enabling faster environmental action through the power of data. Our new platform launching today ensures that data disclosed once can be used by many investors, lenders, and procurement teams across the globe.”
Emmanuel Faber, Chair of the ISSB, added, “CDP is the ISSB’s key global climate disclosure partner. We are delighted that CDP’s new 2024 questionnaire aligns with our climate standard IFRS S2 as the baseline for climate-related disclosures for investors. With a record of success in driving the adoption of disclosure frameworks, CDP is an established, trusted tool that supports companies on their path to ISSB compliance. Our partnership will make life easier for companies to disclose relevant data to their stakeholders and will critically accelerate rapid global uptake of IFRS S2 and the availability of information so urgently needed by investors.”
CDP continues to advance its disclosure system to meet market needs, investing in technology to allow an open cycle of reporting, further harmonising standards beyond climate, and ensuring the usefulness of disclosed data to drive change. Last year, companies representing over 66% of global market capitalisation disclosed their data to CDP. To underline CDP’s pivotal role in the ecosystem, the organisation is hosting the Global Disclosure Dialogue, an event featuring prominent speakers from Standard Chartered, NTT Data, Klabin, Nissay Asset Management, the Green Finance Institute, and more.
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
