Corporate environmental accountability has become crucial in recent years, as stakeholders evaluate how companies are addressing climate change impacts and emissions. A key resource in this effort is CDP (formerly known as the Carbon Disclosure Project), an international non-profit organisation that helps corporations create sustainability programs aimed at reducing emissions and pollution into our environment. Keep reading to learn more about the role CDP reporting can play in helping a business move towards greater sustainability!
In today's world, environmental sustainability is a pressing concern for investors, companies, and the public. As climate change continues to affect people and the planet, stakeholders are increasingly interested in how companies are addressing the challenges posed by a changing environment. The "E" in environmental, social, and governance (ESG) reporting has gained significant attention, and CDP is helping addressing ‘E’nvironmental factors with its reporting framework. A Framework designed for companies to disclose their environmental impacts and efforts to reduce emissions, pollution, and other forms of environmental damage.
CDP reporting is a process through which companies score and share their environmental data. A broad range of stakeholders rely on CDP as a process for companies to report their environmental impacts and demonstrate they are managing the risks and opportunities associated with climate change, deforestation, and water security.
A CDP score provides a quick snapshot of how environmentally well a company is doing. CDP data reveals which companies are better long-term investments and helps investors manage environmental risks within their portfolios while assessing their investments' carbon footprint. It's not just investors that value CDP reports. More and more companies are turning to environmental scoring to evaluate their own environmental impact and of the third parties they work with.
The benefits of environmental reporting extend beyond accountability to investors and clients. They include:
There are many more advantages to gain. Transparency, standardisation and a culture of accountability create trust among investors, shareholders, and the public, contributing to a positive image for the business.
The additional advantages of reporting are significant when it comes to supply chain transparency. It helps identify supply chain risks, mitigate reputational risks and evaluate carbon-reduction performance compared to competitors – increasingly more important with Scope 3.
Ultimately by embracing greater accountability and transparency, companies become more attractive to sustainably-conscious stakeholders: investors, suppliers, customers, and employees.
Talk to Pulse Market about our ESG Passport designed to kickstart SMEs ESG journey.