Climate research and environmental information system provider CDP today announced the launch of a new platform aimed at streamlining and simplifying corporate sustainability reporting and harmonizing with emerging global standards. As part of the new launch, CDP has unveiled a new questionnaire aligned with the International Sustainability Standard Board’s (ISSB) new climate information standard, IFRS S2, as the basis for CDP’s climate information.
CDP operates a global environmental disclosure system, which allows investors and other stakeholders to measure and track the organization’s performance in key environmental sustainability areas, including climate change, deforestation and water security. Last year, a new category for plastic-related impact was added. In 2023, a record of more than 23,000 companies were disclosed through CDP, an increase of 24% from the previous year, and representing companies worth $67 trillion, or more than 66% of the global market capitalization.
The new platform comes as companies worldwide are under increasing pressure to comply with a range of new emerging 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 securities regulators, with a call for regulators to incorporate the standards into their regulatory frameworks for sustainability reporting. The IFRS Foundation recently revealed that jurisdictions representing almost 55% of global GDP have already taken steps to adopt or align with ISSB sustainability reporting standards.
According to CDP, the new platform and alignment with ISSB standards aim to reduce the reporting burden on companies and make it easier for companies to comply with the new standards, with new research showing that almost 60% of companies already responds to the vast majority of the CDP questionnaire in line with IFRS S2.
Emmanuel Faber, Chairman of the ISSB, said:
“With a record of success in driving adoption of disclosure frameworks, CDP is an established, trusted tool that supports companies on their path to ISSB compliance. Our partnership will make it easier for companies to disclose relevant data to their stakeholders and will critically accelerate the rapid global adoption of IFRS S2 and the availability of information that investors so urgently need.”
CDP announced last year that it planned to align with IFRS S2, and also revealed plans to consider additional sustainability reporting standards, including reflecting the new Taskforce on Nature-related Financial Disclosures (TNFD) framework in its questionnaire, and to reflect the SEC’s upcoming climate. 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 the ISSB, TNFD, EFRAG and other global frameworks to fulfill our role in the ecosystem, answer market demands for efficiency and enable faster environmental action through the power of data.”
CDP added that it has now combined climate, forests, water, biodiversity and plastics and made progress in aligning with the other key standards, including the TNFD and ESRS, by harmonizing them into one questionnaire and dataset. In addition, CDP announced the release of a standalone questionnaire for SMEs aimed at building capacity in 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 it cannot spend on action. This year, CDP is a better partner for companies, cities, states and regions than ever before, making disclosure even more efficient.”