Authorised IMDS & CDX Training & Consulting partner for
A new platform has been launched by environmental disclosure system CDP, a supplier of climate research, with the goal of aligning with growing global standards and simplifying and improving sustainability reporting for businesses. A new questionnaire that serves as the core baseline for CDP’s climate disclosure was presented as part of the new launch. It is linked with the new climate disclosure standard, IFRS S2, of the International Sustainability Standard Board (ISSB) of the IFRS Foundation.
A new category for plastic-related impact was added to CDP’s global environmental disclosure system last year, making it possible for investors and other stakeholders to monitor an organization’s performance in important environmental sustainability areas like water security, deforestation, and climate change. A record number of over 23,000 firms—a 24% increase from the previous year—disclosed information through CDP in 2023; these companies represented over 66% of the global market capitalization, or $67 trillion.
The launch of the new platform coincides with mounting pressure on businesses throughout the globe to adhere to a number of recently developed sustainability reporting requirements. The most well-known are the new climate (IFRS S2) and general sustainability (IFRS S1) reporting standards from the IFRS Foundation, which were introduced in June 2023 and approved by IOSCO, the main international policy forum and standards-setting body for securities regulators. The standards urge regulators to implement them into their sustainability reporting regulatory frameworks. According to recent data released by the IFRS Foundation, countries accounting for around 55% of the world’s GDP have already started implementing or adhering to the organization’s ISSB sustainability reporting criteria.
The new platform and alignment with ISSB standards, according to CDP, are intended to lessen the reporting burden on businesses and facilitate their compliance with the new standards. The organization also mentioned recent research showing that nearly 60% of businesses that responded to the vast majority of the CDP questionnaire already aligned with IFRS S2.
The European Sustainability Reporting Standards (ESRS) and the SEC’s upcoming climate disclosure rule will be reflected in CDP’s disclosure system, along with plans to consider additional sustainability reporting standards. Last year, CDP announced that it would align with IFRS S2. It also revealed plans to consider other sustainability reporting standards. In order to optimize the alignment of its disclosure system with the ESRS, CDP also announced in November 2023 that it has reached a deal with the European Financial Reporting Advisory Group (EFRAG).
In addition, CDP stated that it has advanced its alignment with other important standards, such as the TNFD and ESRS, and integrated climate, forests, water, biodiversity, and plastics into a single questionnaire and dataset. A stand-alone survey for SMEs was also made available by CDP, with the goal of enhancing capacity all along the global value chain.
With the launch of the new platform, CDP said that a record 75,000 firms have been asked to submit environmental data through CDP by financial institutions worth a record $142 trillion.