CDP unveils ISSB-aligned reporting platform

Sustainability disclosure initiative CDP has launched a new platform to facilitate climate reporting aligned with the ISSB (IFRS S2) standard.

The platform went live this week and will replace the former CDP climate change questionnaire for about 75,000 companies, bringing climate, forests, water, biodiversity and plastics issues together in one questionnaire and dataset. 

Commenting on the launch, CDP CEO Sherry Madera echoed her April comments to CSO Futures: “Every dollar an organisation spends on reporting is a dollar they cannot spend on action. This year, CDP is a better partner for corporates, cities, states and regions than ever before, making their disclosure even more efficient. 

“There are compelling business reasons to disclose environmental data: securing access to capital, driving business efficiency and responding to growing compliance requirements. These demands for disclosure affect core business success both at home and abroad. Our new platform launching today ensures that data disclosed once can be used by many investors, lenders, and procurement teams across the globe,” she said.

75,000 firms to disclose through new CDP platform

CDP estimates that financial institutions with US$142 trillion in assets have demanded that companies in their portfolios report on their 2023 impacts. The majority of these companies are well-prepared to make these disclosures, with nearly 60% of listed firms “already reporting the vast majority of data points aligned with IFRS S2 in CDP’s questionnaire”, the organisation notes.

Increasing corporate adoption of ISSB disclosures are partly driven by regulatory efforts to integrate them in mandatory reporting: more than 20 jurisdictions representing over half of global GDP have already started to implement ISSB guidelines in one way or another.

“With a record of success in driving the adoption of disclosure frameworks, CDP is an established, trusted tool that supports companies on their path to ISSB compliance. Our partnership will make life easier for companies to disclose relevant data to their stakeholders and will critically accelerate rapid global uptake of IFRS S2 and the availability of information so urgently needed by investors,” said Emmanuel Faber, Chair of the ISSB.

Harmonising the ‘alphabet soup’ of sustainability standards

CDP’s new platform is part of global efforts to harmonise the wide range of existing voluntary and mandatory sustainability standards, sometimes referred to as an ‘alphabet soup’.

In addition to its collaboration with the International Sustainability Standards Board (ISSB), CDP also worked with the Taskforce on Nature-Related Financial Disclosures (TNFD), as well as EFRAG, the EU body responsible for the European Sustainability Reporting Standards (ESRS) to align data points.

Meanwhile, the IFRS Foundation and EFRAG recently released guidance to help Chief Sustainability Officers navigate the alignment between ISSB standards and the European Sustainability Reporting Standards (ESRS).