May 3, 2022 (Berlin): Commenting on the release by the European Financial Advisory Reporting Group (EFRAG) of the draft European sustainability reporting standards, CDP CEO Paul Simpson said:
“The EU has shown leadership in creating sustainability standards covering companies’ impacts on people and planet, as well as environmental-related risk information – what the EU calls "double materiality". With the environmental crisis needing immediate attention, this much needed strengthening of EU disclosure rules will bring more accountability, a better understanding of risks and opportunities and of the progress against EU and global goals, and will raise the bar on what is expected from companies. For example, CDP data shows just 1 in 20 listed companies have strong targets to reduce emissions, water use and deforestation impact, and around 50% of emissions reported aren’t covered by science-based targets to align with 1.5 degrees. Corporates are not moving fast enough to ensure what they do align with our planet’s limits. That’s why these standards’ requirement that companies report a wide range of relevant science-based environmental data is so key.
With 13,000 companies currently disclosing environmental data to CDP, we are committed, through mainstreaming the European standards and other emerging global standards at scale through our disclosure system, to providing global capital market actors with a one-stop shop to access comparable, high-quality sustainability data produces under different global standards.”
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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 680 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. Over 14,000 organizations around the world disclosed data through CDP in 2021, including more than 13,000 companies worth over 64% 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.