CDP, the leading independent environmental disclosure system, has launched a new platform aimed at improving the efficiency of environmental reporting and promoting faster climate action. This move comes as a record 75,000 companies are requested to disclose environmental data through CDP. 

The new corporate questionnaire from CDP aligns with the ISSB (IFRS S2) climate standard, providing a foundational global baseline. It also incorporates key issues such as forests, water, biodiversity, and plastics into a single questionnaire and dataset. This alignment ensures a streamlined and harmonized reporting process, making it easier for companies to disclose comprehensive environmental data. 

CDP’s recent analysis indicates that nearly 60% of listed companies are already responding to the majority of questions in CDP’s questionnaire aligned with IFRS S2. This shows that many companies are well-prepared to meet the new disclosure requirements. Companies report that using CDP enables them to understand environmental impacts, drive climate action, increase ambition, reduce risks, meet regulatory requirements, and implement best practices. 

CDP’s new platform aims to reduce the reporting burden and make it more efficient. The platform is open to a record number of companies, cities, states, and regions. It includes a streamlined questionnaire that addresses climate, forests, water, biodiversity, and plastics. Additionally, a tailored questionnaire for SMEs helps build capacity across the global value chain. 

Sherry Madera, CEO of CDP, highlights the importance of efficient disclosure, noting that every dollar spent on reporting is one less dollar for action. The platform, developed with support from BCG X, aims to fulfill market demands for efficiency and enable faster environmental action through data. The launch event featured key figures from the ISSB, TNFD, and other organizations, underscoring the platform’s significance in global ESG reporting. 

The directive drives a greater focus on sustainability in business decisions. Two-thirds of Dutch respondents report increased consideration of sustainability due to the CSRD. PwC expert Willem Jan Dubois argues that the responsibility for CSRD compliance should lie with finance, given its role in external reporting, and stresses the importance of collaboration with strategy, sustainability, compliance, and business leaders for accurate and relevant reports. 

Sources: 

https://www.cdp.net/en/articles/media/financial-institutions-with-a-record-142-trillion-in-assets-demand-climate-and-nature-data-as-cdp-unveils-new-disclosure-platform 

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