The Carbon Disclosure Project (CDP) is a global non-profit that specializes in providing companies a framework for investors, companies, cities, and regions to measure and track their climate impact. CDP scores companies and cities based on the information they collect via the annual reporting process. This allows investors and stakeholders to visualize the progress and action being taken on climate change by the companies and cities they work with. Following the new year, CDP has unveiled a series of changes that users can anticipate. Read further for an overview of what these changes entail to ensure that you are well aware of the upcoming CDP season!
First and foremost, the updated deadline for submitting the questionnaire has shifted to September 2024, an extension from the previous end-of-July deadline. However, corporate scores are still to be published by the end of the same year as previously done. This change in the schedule is to allot time to effectively implement the necessary changes, and to give disclosers the time they need to adapt.
Another significant change involves introducing a new corporate disclosure system on an updated platform. Ultimately, this framework aims to streamline and enhance the efficiency of the disclosure process, designing an intuitive system and tailoring question appearances to each disclosing company. This platform will be available as early as April of this year.
The Corporate Questionnaire will also face a notable shift to an integrated form, starting in 2024. This change will unify the three topics of climate, forest, and water into one questionnaire, customized for the sector or business activity of the disclosing company. This is a move away from the three separate disclosures, introducing a more efficient strategy. This restructuring aims to avoid duplicate entries, simplifying and expediting the process. However, ratings will continue to be given individually for each of the three topics.
Additionally, CDP is working to align the questionnaire with the ISSB S2 Climate Standard of 2024, aiming to foster commitment beyond the precedent legal requirements.
CDP is also launching a Small and Medium Enterprises (SME) Questionnaire to advocate for the organizations that comprise 90% of global business. Collaborating with the European Financial Reporting Advisory Group (EFRAG), CDP seeks to shift towards the European Sustainability Reporting Standards (ESRS) by providing joint webinars and comprehensive resources that assist disclosers in meeting legal requirements. This effort intends to reinforce and facilitate the implementation of reporting standards.
These adjustments represent CDP’s commitment to advancing corporate transparency and efficiency in reporting. By fostering collaboration among stakeholders and leveraging innovative new strategies, CDP seeks to empower business and governments alike in their journey towards making an impact.
Measuring and reporting has the potential to open up new supply chains and opportunities for your company–giving you a competitive edge in any market while also making an impact. Ecolytics allows you to save on compliance, centralizes your metrics collection, and keeps you up-to-date with new reporting standards, including our all-inclusive package for reporting to CDP. The CDP reporting landscape is constantly developing, and Ecolytics is here to make it easier for you and your company.
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