INSIGHT by the CDP
〉CDP, which runs the global environmental disclosure platform for corporations, has announced its intention to align with the newly released TNFD framework.
〉Nearly 20,000 companies reported environmental data through CDP’s global environmental disclosure platform in 2022, expected to increase in 2023.
〉CDP’s alignment, supported by the TNFD, will accelerate the implementation of the long-awaited framework for nature-related financial disclosure across the global economy.
〉Through CDP, investors, purchasers and policymakers can access nature-related information in a consistent, comparable, standardized format.
CDP, the non-profit which runs the global environmental disclosure platform for corporations, has announced its intention to align with the framework released today by the Taskforce on Nature-related Financial Disclosures (TNFD).
Initially focused on climate change, deforestation and water security, CDP has been expanding its scope in recent years to include biodiversity and plastic pollution. More than 18,600 companies disclosed through CDP on climate change in 2022, with almost 4,000 disclosing on water security and over 1,000 disclosing on forests. A further 7,700 responded to a series of biodiversity-related questions.
“CDP is delighted to announce our intention to align to align our global disclosure platform with the TNFD framework, which is an exciting opportunity for a unified response to the crisis of nature loss. With more than 18,700 companies, worth half of global market capitalization, disclosing through CDP in 2022 alone, this alignment will be critical in implementing the TNFD framework across the global economy, increasing harmonization, enabling access to standardized data, reducing the reporting burden on companies and paving the way for robust regulation on nature-related disclosure.”
-Nicolette Bartlett, Chief Impact Officer at CDP
CDP’s disclosure request is issued annually on behalf of more than 740 investors with over US$130 trillion in assets and 340+ major buyers with over US$6.4 trillion in purchasing power. CDP is the world’s largest repository of corporate environmental data, and is essential in providing investors, policymakers and other stakeholders, with access to information that is consistent, comprehensive and comparable across geographies.
“CDP has been operating the only global disclosure system for forests and water – key elements of nature – for over a decade. As such, many questions in our three questionnaires align with metrics within the TNFD framework. The TNFD also covers key areas such as oceans, which CDP has committed to expanding to alongside all other environmental topics. The TNFD framework will enable CDP to further accelerate our incorporation of more environmental topics by providing a robust set of good practice indicators on areas such as oceans and land. By working together, we will accelerate disclosure and action on nature across the economy.”
-Nicolette Bartlett, Chief Impact Officer at CDP
CDP is already exploring alignment with the TNFD framework, which will start to be reflected in its disclosure system from 2024. CDP has already successfully aligned its disclosure framework with various frameworks and standards, working in close collaboration with leading standard setters and regulators. For example, it aligned with the TCFD recommendations in 2018 and is set to fully align with the IFRS S2 climate disclosure standard from 2024. CDP is also looking to ensure its disclosure framework takes on board other impactful environmental reporting requirements where appropriate such as those being developed by, or mandated by, EFRAG in the EU, the ISSB, the US SEC, and other initiatives and bodies across the world.
| about
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 740 financial institutions with over $130 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Nearly 20,000 organizations around the world disclosed data through CDP in 2022, including more than 18,700 companies worth half of global market capitalization, and over 1,100 cities, states and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.
[1] Trends in CDP disclosure
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