Scaling the Standard
Insights from CDP’s IFRS S2-aligned disclosures
In 2024, CDP aligned its corporate questionnaire with the International Sustainability Standards Board's (ISSB) International Financial Reporting Standards (IFRS) S2 standard as its foundational baseline for climate disclosure, enabling over 24,800 companies worth two-thirds of global market capitalization to disclose IFRS S2-aligned data in a structured and transparent way. CDP is now the largest single source of consistent, globally comparable IFRS S2-aligned climate data for investors and decision-makers.
As jurisdictions representing more than half of global GDP move toward mandatory ISSB-aligned reporting, this snapshot provides critical insights from CDP disclosures on companies' progress on the path to ISSB compliance.
Are companies on the path to compliance? Global analysis of IFRS S2 alignment through CDP
In 2024, 83% of disclosing companies – representing more than half of global market capitalization – reported on the vast majority of IFRS S2-aligned questions through CDP, demonstrating that companies disclosing through CDP are strongly positioned to meet emerging regulatory requirements.
of assessed companies are disclosing against at least 80% of IFRS-S2 aligned questions
of companies provided full responses to the aligned questions on governance
of companies provided answers to all aligned questions on climate-related metrics
Identifying gaps
The majority of companies are responding to climate governance-related questions, with 85% providing all information required in response to the aligned questions on the processes they use to manage their climate-related risks and opportunities. Risk management disclosures are strong, with 58% providing full responses to the aligned questions. However, gaps remain in the extent of responses against other IFRS S2 components.
Climate-related metrics saw the lowest levels of response, with only 25% of companies providing answers to all aligned questions. Half of the assessed companies responded to at least half of the aligned questions on the use of climate-related scenario analysis to assess their climate resilience.
These findings highlight key areas for companies to further the extent of their IFRS S2-aligned reporting as mandatory disclosure requirements approach.
How policymakers can collaborate with CDP
As more jurisdictions introduce mandatory disclosure, CDP is uniquely positioned to support governments and policymakers incorporating IFRS S2 into regulation, providing a globally accessible platform for disclosure of ISSB information and a means to track its uptake across the economy.
CDP has a proven track record in scaling the adoption of disclosure frameworks and standards. For example, our 2018 questionnaire alignment was a primary driver behind the mainstreaming of TCFD-aligned reporting globally, which subsequently informed the first wave of mandatory disclosure regulation.
Case-study: Advancing ISSB-Aligned Disclosure in Brazil
More than 1,100 Brazilian companies – representing 86% of the country’s total market capitalization – disclose through CDP. Now, through a first-of-a-kind partnership, CDP and Brazil’s market regulator, the Comissão de Valores Mobiliários (CVM), are working together to strengthen sustainable finance and market transparency in Brazil. CDP data is shared with CVM to provide the regulator with critical insight into the market’s readiness for regulation as Brazil prepares to implement its own mandatory disclosure framework based on the ISSB Standards.
For publicly traded Brazilian companies, disclosure through CDP provides a strong foundation for preparing sustainability reports in line with incoming regulatory requirements and is supporting companies on their path to ISSB compliance.
How to engage with CDP to align with ISSB
CDP is ISSB’s key global climate disclosure partner and the ISSB’s climate standard is the foundational baseline for CDP’s climate disclosure. Together with the disclosed dataset, the questionnaire provides an effective tool to support companies on their path to ISSB compliance.
By disclosing through CDP from June to September 2025, companies will disclose data directly to their stakeholders and subsequently the wider global market, including IFRS S2-aligned climate data.