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