Record 23,000+ companies disclose environmental impact through CDP, with urgency for action clear in wake of unprecedented global temperatures
- Written by: Daily Bulletin
- Published in News from Asia
- Record 23,000+ global companies – including listed companies worth over two thirds of market capitalization – reported environmental data through CDP in 2023
- USA, China, Japan, UK and Germany lead the way as home to the most disclosing companies
- Data gained from disclosure is essential to tracking progress against the Paris Agreement and the first Global Stocktake, set to conclude at COP28
- New Chief Executive Officer Sherry Madera shares CDP's plans for its new future-proofed platform as demand for environmental data grows and ahead of incoming regulation
Disclosures are up 24% from 2022 and 300% since the Paris Agreement
This represents a 24% increase in the number of companies that disclosed in 2022 and an increase of over 300% through CDP, the global non-profit that runs the world's environmental disclosure system for companies, cities, states and regions, since the signing of the Paris Agreement in 2015.
The positive global trend for corporate transparency and accountability continues, with companies disclosing through CDP based across the world, representing many tens of thousands of subsidiaries and divisions, and hundreds of thousands of facilities.
Most countries have seen growth in the number of disclosing companies, including a considerable increase in Asia, where the Republic of Korea and Cambodia more than doubled the number of disclosing companies since the previous year. The USA, China and Japan continue to make up the top three disclosing countries.
However, while reporting in three key areas has increased – on climate change, water security and deforestation – only 1% of companies reported on all three areas, underlining the need to enable better disclosure on nature.
City, state and region disclosure has so far reached over 1,100 in close to 100 countries. Reflecting the global reach of CDP's sub-national work, this covers cities from Austin to Auckland, and states and regions in each continent - such as Latin America, where nearly 90% of the Brazilian Amazon is covered by regions reporting to CDP. CDP-ICLEI Track, the world's leading climate reporting platform for cities, and CDP's disclosure platform for states and regions remain open for 2023 disclosure.
Sherry Madera, Chief Executive Officer at CDP said: "With over 23,000 businesses disclosing through CDP this year, it is clear that sustainability – and the data that underpins it - is not a 'nice to have', but an essential part of long-term success in the business community that is showing no sign of slowing down – nor should it.
"IPCC forecasts on our world's climate trajectory make for grim reading in what is set to be the warmest year on record. To take decisive action for the future of our planet, we need organizations to be measuring and managing where they are on their sustainability journey through disclosure.
"Without data we lack accountability. This accountability is vital and timely especially ahead of COP28 in Dubai which will deliver the first Global Stocktake.
Michelle Papayannakos, BBC Group Senior Sustainability Manager said:
"CDP has really helped the BBC to engage internally on climate change, increasing our maturity as an organization and providing a robust valuation of our current activities.
"CDP is also a core part of our decarbonization strategy for our supply chain, asking our top 450 suppliers to also disclose has enhanced engagement, transparency of data and most importantly, led to a ripple effect of development and action on climate change."
As the global landscape of mandatory disclosure expands, CDP is committed to align with the global baseline of climate-related financial disclosures delivered through the ISSB Standards to support companies and reduce the reporting burden, and ensuring investors and regulators have access to the data they need across regions and regulatory requirements.
Already aligned with the TCFD recommendations, CDP's 2024 questionnaire will align with the ISSB's climate disclosure standard (IFRS S2) and from next year will start to reflect the TNFD framework, encouraging more companies to report across both climate and nature matters. CDP has also committed to reflecting the SEC's upcoming climate disclosure rule and the European Sustainability Reporting Standards in its disclosure system .
Emmanuel Faber, Chair of the ISSB, said: "The demand from global capital markets for robust, consistent and accurate climate-related information is higher than ever, and with it the need for a disclosure eco-system that is easy to navigate for companies.
"CDP's work towards alignment with the IFRS S2 is incredibly welcome and timely, as it will further ease the reporting burden for thousands of companies, moving us one step closer to a common language for disclosures, while improving the consistency of climate-related information for investors and accelerating their access to this data. As companies prepare to implement the ISSB standards, it is positive to see yet another year of growth in voluntary disclosure through CDP."
Sherry Madera continues: "CDP recognizes its unique role and responsibility to accelerate action as the driving force for collecting primary environmental data from organizations for over 20 years.
"As the demand for sustainability data gets increasingly intense and complicated for organizations to negotiate, we have the expertise to prepare organizations – large and small – to meet the needs of their stakeholders. This is why in 2024, we will be making it easier and quicker to disclose and access data, through a new framework on a new and enhanced technology platform.
"These improvements will enable CDP to continue to push boundaries in environmental reporting and helps organizational leaders deliver impact for their company and for the planet."
Notes to editor
- CDP and the IFRS Foundation announced at COP27 that CDP will incorporate the International Sustainability Standard Board's (ISSB) IFRS S2 Climate-related Disclosures Standard [IFRS S2] into its global environmental disclosure platform from 2024, in a major step towards delivering a comprehensive global baseline for capital markets through the adoption of ISSB standards.
- Sherry Madera started her role as the new Chief Executive Officer of CDP on 3 October 2023.
- The Copernicus Climate Change Service (C3S), published its monthly bulletin on 5 October 2023, in which it reported that 2023 is on track to be the warmest year on record
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About CDP
CDP is a global non-profit that runs the world's environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 740 financial institutions with over $136 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 24,000 organizations around the world disclosed data through CDP in 2023, with more than 23,000 companies – including listed companies worth two thirds global market capitalization - and over 1,100 cities, states and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.
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