Climate research provider and environmental disclosure platform CDP and the International Sustainability Standards Board (ISSB) of the IFRS Foundation announced today that CDP will incorporate the IFRS’ new climate-related disclosure standard into its environmental disclosure platform.

According to the organizations, beginning in the 2024 disclosure cycle, thousands of companies reporting environmental sustainability data through CDP will begin doing so utilizing the IFRS S2 Climate-related Disclosures, currently under development by the ISSB.

CDP runs a global environmental disclosure system, enabling investors and other stakeholders to measure and track organization’s performance in key environmental sustainability areas including climate change, deforestation, and water security. The platform provides annual scores for companies – typically released each year in December – on each of the key categories.

According to CDP, the integration will support the rapid acceleration of the ISSB’s climate data disclosure requirements. CDP recently reported that more than 18,700 companies – worth nearly $61 trillion – disclosed environmental data through the platform this year, up more than 40% over the prior year.

Paul Dickinson, Founder Chair at CDP, said:

“As the only global environmental disclosure platform, with over 18,700 companies worth half of global market capitalisation 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.”

Launched in November 2021 at the COP26 climate conference last year, the ISSB is developing the  IFRS Sustainability Disclosure Standards, in order to provide a global baseline of disclosure requirements that can be used by jurisdictions and incorporated into broader reporting frameworks. In March 2022, the ISSB released the initial drafts of its standards for general sustainability and climate-related disclosures, and it aims to issue final standards in 2023. The board recently announced that Scope 3 emissions reporting and climate scenario analysis will be required under the new standards.

Emmanuel Faber, Chair of the ISSB, said:

“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.”

At the COP27 conference today, also announced the formation of a new partnership framework, kicking off with more than 20 partner organizations, focused on supporting preparers, investors and other capital market stakeholders to prepare to use the new IFRS sustainability reporting standards.

Emmanuel Faber, Chair of the ISSB, said:

“We are working collaboratively towards the implementation of effective sustainability disclosures for capital markets, which will empower market participants with the right information to support better economic and investment decision making.”

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