In response to market needs, CDP is taking a sector-focused approach to disclosure and scoring in 2018 for our climate change, forests and water security requests.
This evolution in disclosure builds upon forward-looking metrics such as carbon pricing and science-based targets to indicate the progress companies are making. It ensures we continue to ask the right questions and gather the most meaningful data for companies and investors to better understand environmental risk and opportunities.
To advance the availability of financially relevant information for global markets, we are aligning our information request with the recommendations from Mark Carney’s Task Force on Climate-related Financial Disclosures. This harmonization will help to create efficiencies and optimize the reporting process for companies.
Please read this blog to find out more about how this move to sectors benefits companies.
For more information and guidance on disclosing from 2018 please visit our guidance pages.
Sectors introduced in 2018 include:
Companies outside of these sectors will receive a general questionnaire, as in previous years. Further sectors will be introduced in 2019.
In order to allocate sector-specific questions to companies CDP has developed a new Activity Classification System (CDP-ACS). This is a framework used to categorize companies by the most relevant sectors. CDP-ACS focuses on the diverse activities from which companies derive revenue and associates these with the impacts to their business from climate change, deforestation, and water security.
As a result, this new approach ensures a better understanding of company actions according to their environmental risk, opportunity, and impact and is essential for better comparability of data. Most industry classification systems group companies according to systemic risk. Whilst this can be useful for investors as they assess risk in their portfolios, it does not help truly understand and compare companies by environmental risk, opportunity, and impact.
Responses to investor requests must be submitted by August 15, 2018 to be automatically eligible for scoring and inclusion in CDP reports (where applicable).
Responses to supply chain requests must be submitted by August 29, 2018.