Disclosure of State Entities’ Environmental Data Will Boost Prudent Fiscal Management, Reduce Risk Exposure and Enhance Financial Stability
June 25, 2021 – New York: In collaboration with New York State, CDP, a global environmental non-profit that runs the world’s largest and only comprehensive platform for companies, cities, states and regions to disclose environmental data and information, today announced it will develop a holistic environmental disclosure model tailored specifically for public authorities. Public authorities run critical systems used by millions of people each day – from airports to public transit, to wastewater. The new model of disclosure will allow government entities to more accurately and properly measure, mitigate and disclose climate-related information and take a consistent approach to measuring environmental impact and climate risk, which will enhance financial stability.
Several of New York State’s public authorities will begin to disclose their environmental impacts through CDP once the disclosure model has been developed. This will further strengthen New York’s and CDP’s efforts to advance climate risk disclosure at scale.
Clear, consistent and detailed data is crucial for regulators, investors, New York State businesses and consumers to understand these authorities’ environmental risk exposure and their direct and indirect contributions to climate change. This disclosure is a critical first step in measuring and mitigating climate-related risks and impacts.
Ultimately, the goal of the partnership is to drive environmental disclosure not just within New York State, but for the 20,000+ public authorities across North America. New York State and CDP advocate that disclosure is a planning tool to help public authorities measure and manage their environmental impacts while creating more efficient links to the capital markets – allowing capital to flow to critically-needed sustainable infrastructure projects.
Katie Walsh, Head of Cities, States and Regions at CDP North America, commented: “Our partnership with New York State is especially catalytic because our country’s public authorities – airports, housing, power grids and more – unlock enormous opportunities to act on climate change. We are at a pivotal moment as states and cities rebuild local economies from COVID-19 and the Biden Administration has set a goal to reduce climate emissions by 50% by 2030. By measuring and managing their climate risk and setting targets, public authorities offer a transformative pathway to break through barriers and deliver on a decade of climate action in every part of the country.”
New York public authorities are some of the most active in the world when it comes to building and operating large infrastructure projects which generate substantial benefits to surrounding communities, including historically disadvantaged communities. That experience also makes New York's public authorities experts in the world of finance and utilizing public resources to support the interests of the entire state. Encouraging public authorities to disclose their environmental impacts to CDP will help New York State improve the health and well-being of local communities, catalyze economic growth and enhance climate resilience.
CDP, with support from the New York State Energy Research and Development Authority (NYSERDA), will develop the next evolution of environmental disclosure that will precisely capture the specific needs and concerns of public authorities. This will serve as an invaluable tool for managing risk and informing investment decisions by the financial markets. The disclosure will be developed in alignment with the Task-Force on Climate-related Financial Disclosures, a framework that is concerned with the financial stability ramifications of climate change resulting from the potential mispricing of assets and misallocation of capital.
The partnership to develop this public authorities questionnaire is being announced in a moment of heightened awareness of infrastructure’s critical role in the climate crisis. The Biden Administration is focusing heavily on infrastructure investment to jumpstart environmental resilience in U.S. cities and states, as well as create jobs that will build back better after COVID-19 in a just and equitable manner.
Doreen M. Harris, President and CEO, New York State Energy Research and Development Authority (NYSERDA) said, “We are excited and proud to collaborate with CDP to develop guidance and a pilot questionnaire that will shape how data unique to the work of New York State authorities and other public authorities is captured. The knowledge gained through this effort will help inform the State’s future work and better allow us to make tangible progress towards reducing our carbon footprint and fighting climate change.”
CDP is the largest repository of corporate and municipal information on environmental impact. In 2020, over 10,000 companies and local governments disclosed through CDP, either at the request of their investors or customers, or of their own accord.
For more information, or exclusive interviews, please contact:
Anna Clark, Director, Communications, CDP North America, tel. +1 646-668-4184 | email: [email protected]
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 590 investors with over $110 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 10,000 organizations around the world disclosed data through CDP in 2020, including more than 9,600 companies worth over 50% of global market capitalization, and over 940 cities, states and regions, representing a combined population of over 2.6 billion. 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.