The variety of corporations publicly disclosing environmental information by means of the CDP platform has soared 24 p.c within the final 12 months, with over 23,000 listed corporations worldwide publicly reporting on their environmental efficiency.
The annual replace from the more and more influential disclosure platform confirmed that listed corporations that collectively boast a market capitalization of $67 trillion, accounting for over two-thirds of whole market capitalization, now present some type of environmental impression information on their enterprise by means of the platform.
The U.S., China, and Japan proceed to make up the highest three disclosing international locations, however there was additionally substantial progress in Asia the place each South Korea and Cambodia greater than doubled the variety of disclosing corporations in comparison with 2022.
CDP works on behalf of traders to put in writing to listed corporations requesting their present info on their carbon emissions, impression on water and forests, provide chain administration and plans to boost their environmental efficiency. The ensuing disclosures present traders and different stakeholders with comparable info on the environmental and climate-related dangers and alternatives a enterprise faces.
The platform has gained vital prominence in recent times, as extra traders name on listed corporations to offer correct environmental information. Immediately’s report confirms that the variety of corporations disclosing by means of the platform has elevated fourfold because the Paris Settlement in 2015.
Nevertheless, CDP warned that disclosures from the overwhelming majority of listed companies remained incomplete, with just one p.c of corporations offering information on all three of its focus areas: local weather change, water safety and deforestation.
The replace additionally confirms that rising numbers of public sector our bodies are reporting by means of the platform, with disclosures supplied by over 1,100 metropolis, state and regional governments in near 100 international locations.
Sherry Madera, chief govt at CDP, mentioned it was clear that environmental reporting had turn into a mainstream apply for the overwhelming majority of the world’s largest companies. “With over 23,000 companies disclosing by means of CDP this 12 months, it’s clear that sustainability — and the information that underpins it — shouldn’t be a ‘good to have’, however a vital a part of long-term success within the enterprise group that’s displaying no signal of slowing down — nor ought to it,” she mentioned. “IPCC forecasts on our world’s local weather trajectory making for grim studying in what is about to be the warmest 12 months on document. To take decisive motion for the way forward for our planet, we want organizations to be measuring and managing the place they’re on their sustainability journey by means of disclosure.”
Michelle Papayannakos, BBC group senior sustainability supervisor, mentioned a standardized strategy to carbon reporting and environmental disclosures can play a vital function in enabling the event of efficient decarbonization methods.
“CDP has actually helped the BBC to interact internally on local weather change, rising our maturity as a corporation and offering a sturdy valuation of our present actions,” she mentioned. “CDP can also be a core a part of our decarbonization technique for our provide chain. Asking our prime 450 suppliers to additionally disclose has enhanced engagement, transparency of knowledge and most significantly, led to a ripple impact of improvement and motion on local weather change.”
The information comes simply days after the Taskforce for Local weather-related Monetary Disclosures disbanded after its suggestions on disclosure finest practices had been adopted by the Worldwide Sustainability Requirements Board (ISSB), which gives a world commonplace for company sustainability reporting.
CDP mentioned its requests for info from listed corporations had been already aligned with the TCFD suggestions and that it could align its 2024 questionnaire with the ISSB’s local weather disclosure commonplace (IFRS S2). From subsequent 12 months it can additionally begin to mirror the not too long ago launched Taskforce on Nature-related Monetary Disclosures (TNFD) Framework in its info requests, it mentioned.
“CDP recognises its distinctive function and accountability to speed up motion because the driving power for gathering main environmental information from organizations for over 20 years,” mentioned Madera. “Because the demand for sustainability information will get more and more intense and sophisticated for organizations to barter, we’ve got the experience to arrange organizations — giant and small — to satisfy the wants of their stakeholders. For this reason in 2024, we will likely be making it simpler and faster to reveal and entry information, by means of a brand new framework on a brand new and enhanced know-how platform.
“These enhancements will allow CDP to proceed to push boundaries in environmental reporting and helps organizational leaders ship impression for his or her firm and for the planet.”
Emmanuel Faber, chair of the ISSB, welcomed the alignment between the CDP platform and the ISSB’s new requirements.
“The demand from international capital markets for strong, constant and correct climate-related info is increased than ever, and with it the necessity for a disclosure eco-system that’s straightforward to navigate for corporations,” he mentioned. “CDP’s work in direction of alignment with the IFRS S2 is extremely welcome and well timed, as it can additional ease the reporting burden for 1000’s of corporations, transferring us one step nearer to a standard language for disclosures, whereas enhancing the consistency of climate-related info for traders and accelerating their entry to this information.
“As corporations put together to implement the ISSB requirements, it’s optimistic to see one more 12 months of progress in voluntary disclosure by means of CDP.”
