GHG Emissions, Regulation - November 9, 2022
CDP to Incorporate ISSB Climate-Related Disclosures Standard
CDP will soon be incorporating the International Sustainability Standard Board’s (ISSB) IFRS S2 Climate-related Disclosures Standard [IFRS S2] into its global environmental disclosure platform.
The announcement came ahead of the finance day at the COP27 conference, signaling a response to market demand for effective, consistent climate disclosures.
There are 18,700 companies that disclose environmental information through CDP through questionnaires issued annually on behalf of 680 financial institutions with over $130 trillion in assets. This will result in rapid adoption of ISSB climate data disclosure worldwide.
By incorporating ISSB’s standards, CDP will offer investors consistency on climate-related information and reduce the reporting burden on entities by streamlining requirements.
The G20, G7 and Financial Stability Board have already signaled their support for the adoption of the ISSB standards.
“As warnings of the closing window to avoid climate catastrophe grow louder, this global baseline standard for financial markets is an important step forward,” Nicolette Bartlett, Chief Impact Officer at CDP, said in a statement. “It will not only further support companies and financial institutions to build resilience and adapt, as climate risk disclosure was found to do by the Intergovernmental Panel on Climate Change, but to further increase ambition and action. Disclosure is the bedrock of action: what we don’t measure we can’t manage. We live in a global world and need a global understanding of the risks we face, the solutions available, the progress made and the laggards holding us back. CDP is pleased to put our weight behind driving the implementation of this long-awaited global Standard.”
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