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CDP Unveils Cutting-Edge Sustainability Reporting Platform Aligned with IFRS Climate Disclosure Standard

CDP operates a comprehensive global environmental disclosure system, enabling investors and stakeholders to evaluate and monitor organisations' environmental performance across critical areas such as climate change, deforestation, and water security.

In 2023, an unprecedented 23,000 companies disclosed through CDP, a 24% increase from the previous year, collectively representing companies with a market value of $67 trillion, or over 66% of global market capitalisation.

This platform's launch coincides with rising global pressure on companies to adhere to new sustainability reporting standards. Among these are the IFRS Foundation’s newly established general sustainability (IFRS S1) and climate (IFRS S2) reporting standards, endorsed by International Organisation of Securities Commissions (IOSCO). Regulators worldwide are encouraged to incorporate these standards into their sustainability reporting frameworks. Recently, the IFRS Foundation disclosed that jurisdictions accounting for nearly 55% of global GDP are taking steps to adopt or align with ISSB sustainability reporting standards.

CDP’s new platform and its alignment with ISSB standards aim to reduce the reporting burden on companies and facilitate compliance with the new standards. Recent research indicates that almost 60% of companies already address the majority of the CDP questionnaire, which aligns with IFRS S2.

Emmanuel Faber, Chair of the ISSB, remarked:

“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.”

Last year, CDP announced plans to align with IFRS S2 and revealed intentions to incorporate additional sustainability reporting standards, including the new Taskforce on Nature-related Financial Disclosures (TNFD) framework, the SEC’s upcoming climate disclosure rule, and the European Sustainability Reporting Standards (ESRS). In November 2023, CDP also announced a collaboration with the European Financial Reporting Advisory Group (EFRAG) to align its disclosure system with the ESRS.

Sherry Madera, CEO of CDP stated:

“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.”

CDP has now integrated climate, forests, water, biodiversity, and plastics data, aligning with key standards, including TNFD and ESRS, into a single questionnaire and dataset. Additionally, CDP has released a standalone questionnaire for SMEs, aimed at building capacity across the global value chain.

With this new platform, CDP reported that financial institutions managing a record $142 trillion have requested environmental data disclosure from a record 75,000 companies through CDP.

Madera added:

“Every dollar an organisation 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.“

Associations play a pivotal role in driving climate action and ensuring members adhere to evolving environmental standards. As custodians of industry best practices, associations can provide essential guidance on sustainability frameworks like IFRS S2, simplifying complex reporting and easing compliance. In today's dynamic regulatory landscape, associations must champion robust climate strategies, advocate for global standards, and offer tailored support.

At Climate Action for Associations, we empower associations to lead by example, offering guidance on key subjects such as frameworks and climate initiatives. CAFA provides essential support and fosters community learning, helping associations effectively meet their sustainability commitments.

Find out more about becoming a part of the CAFA Collective here.



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