Importance of Environmental Reporting

Disclosing environmental data through CDP allows organizations to be transparent about their environmental impacts, risks and opportunities. This assists investors, policymakers and other decision-makers. Environmental reporting also enables companies to benchmark themselves against peers, identify areas for improvement, and showcase leadership.

Key Areas of Focus

The CDP's questionnaires cover multiple interconnected areas related to climate change, deforestation and water security:

  • Climate Change: Disclosures related to greenhouse gas emissions, climate risks/opportunities, and climate governance
  • Forests: Impact on forests from operations and supply chains
  • Water Security: Water usage, risks from water crises, and strategies

Notable Disclosure Insights

Some high-level insights from CDP disclosures in recent years:

  • Over 90% of disclosing companies report being impacted by climate-related risks
  • Deforestation is a major risk factor across agricultural supply chains
  • Water insecurity is increasing globally due to climate change

References

  • Carbon Disclosure Project — Wikipedia CDP piggybacked on GRI's concept of environmental disclosure in 2002, focusing on individual companies rather than on nations. At the time CDP had just 35 investors signing its request for climate information and 245 companies responding. According to the organization, as of 2022…
  • Carbon Disclosure Project - Sustainable Development Goals — United Nations CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information.
  • Carbon Disclosure Project (CDP) Environmental Reporting — Ecometrica CDP (formally known as Carbon Disclosure Project) runs the largest global disclosure system, covering thousands of companies, cities, states and regions. For decades businesses have voluntarily disclosed their global greenhouse gas emissions to CDP.