Climate research provider and environmental disclosure system CDP today announced the launch of a new platform, which aims to simplify and facilitate sustainability reporting for companies and align with emerging global standards. As part of the new launch, CDP unveiled a new questionnaire aligned to the International Sustainability Standards Board’s (ISSB) IFRS Foundation’s new climate disclosure standard, IFRS S2, as the baseline for disclosure. of climate by CDP.
CDP runs a global environmental disclosure system, enabling investors and other stakeholders to measure and track the organization’s performance in key areas of environmental sustainability, including climate change, deforestation and water security, with a new category for impact related to plastic added last year. In 2023, a record of more than 23,000 companies disclosed through CDP, up 24% from the previous year, and representing companies worth $67 trillion, or more than 66% of global market capitalization.
The new platform comes as companies globally face increasing pressure to meet a range of new sustainability reporting standards. Among the most prominent are the IFRS Foundation’s new general sustainability (IFRS S1) and climate (IFRS S2) reporting standards, launched in June 2023 and endorsed by IOSCO, the leading international policy forum and standard-setter for regulators of securities, with a call for regulators to incorporate the standards into their sustainability reporting regulatory frameworks. The IFRS Foundation recently revealed that jurisdictions representing nearly 55% of global GDP have already taken steps to use or comply with its ISSB sustainability reporting standards.
According to CDP, the new platform and alignment with ISSB standards aim to ease the reporting burden on companies and make it easier for companies to comply with the new standards, noting new research showing that nearly 60% of companies already answer most of the CDP questionnaire is in accordance with IFRS S2.
Emmanuel Faber, Chairman of the ISSB, said:
“With a track record of success in driving the adoption of disclosure frameworks, CDP is an established and 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 the rapid global uptake of IFRS S2 and the availability of the information so urgently needed by investors.
CDP announced last year that it planned to comply with IFRS S2, and also revealed plans to consider additional sustainability reporting standards, including reflecting the Task Force’s new framework on Nature-related Financial Reporting (TNFD) in its questionnaire and to reflect the future climate of the SEC disclosure rule as well as the European Sustainability Reporting Standards (ESRS) in its disclosure system. In November 2023, CDP also announced an agreement with the European Financial Reporting Advisory Group (EFRAG) to maximize the alignment of its disclosure system with the ESRS.
Sherry Madera, CEO of CDP said:
“CDP is proud of our partnerships with ISSB, TNFD, EFRAG and other global frameworks to fulfill our role in the ecosystem, responding to market demand for efficiency and enabling faster environmental action through the power of data.”
CDP added that it has now combined climate, forests, water, biodiversity and plastics and advanced its alignment with other key standards, including TNFD and ESRS, by harmonizing them into one questionnaire and dataset. Additionally, CDP announced the launch of an independent SME questionnaire aimed at building capacity across the global value chain.
With the launch of the new platform, CDP noted that financial institutions representing a record $142 trillion have asked a record 75,000 companies to disclose environmental data through CDP.
Madera added:
“Every dollar an organization spends on reporting is a dollar they can’t spend on action. This year, CDP is a better partner for corporations, cities, states and regions than ever before, making their discovery even more efficient.”