CDP to incorporate ISSB climate-related disclosure standards into global platform.
The week, CDP and the IFRS Foundation announced that CDP will incorporate the International Sustainability Standard Board’s (ISSB) climate-related disclosure standard into its environmental disclosure program. With 18,700 companies, worth half of global market capitalization, disclosing environmental information through CDP in 2022, this integration means there will be a rapid acceleration of early adoption of ISSB climate data disclosure across the global economy.
This decision from CDP it integrate with ISSB is a huge step towards consistency of climate related information and disclosures on a global scale. With this, investors and other stakeholders will get climate related information sooner, and it should reduce the challenges entities who are reporting will face since there will be a wider alignment of requirements.
“As the only global environmental disclosure platform, with over 18,700 companies worth half of global market capitalization disclosing in 2022, CDP is uniquely positioned to scale the early adoption of the ISSB’s climate standard across the global economy. This will be critical in boosting corporate action and accountability, providing financial markets, governments and regulators with clear, comparable data to inform their decision making.” - Paul Dickinson, Founder Chair at CDP
Further, CDP will also provide the IFRS Foundation with access to data on disclosures made against the climate standard for monitoring uptake and implementation of the standards and pursuing their continuous improvement.
“The ISSB is committed to delivering an effective, efficient disclosure eco-system for global capital markets, resulting in decision-useful climate-related disclosures. By aligning the CDP platform to the ISSB’s climate-related standard, we are reducing the burden on entities and moving a step closer to that common language for disclosures. With the demand for robust disclosure as strong as ever, we are delighted that 18,000 preparers will be voluntarily disclosing data structured to IFRS S2 from the 2024 disclosure cycle.” - Emmanuel Faber, Chair of the ISSB
