CDP, the not-for-profit that runs the global environmental disclosure platform for corporations, will incorporate the International Sustainability Standard Board’s (ISSB) IFRS S2 Climate-related Disclosures Standard (IFRS S2) into its global environmental disclosure platform, in a major step towards delivering a comprehensive global baseline for capital markets through the adoption of ISSB standards.
The IFRS S2, currently being finalized, will be incorporated into CDP’s existing questionnaires, which are issued to companies annually on behalf of 680 financial institutions with over US$130 trillion in assets.
The decision accelerates the early adoption of IFRS S2 disclosures, thereby providing investors with consistency of climate-related information they need sooner, and reducing the reporting burden on entities through an alignment of requirements.
“As the only global environmental disclosure platform, with over 18,700 companies worth half of global market capitalization disclosing in 2022, CDP is uniquely positioned to scale the early adoption of the ISSB’s climate standard across the global economy,” adds Paul Dickinson, CDP’s founder chair. “This will be critical in boosting corporate action and accountability, providing financial markets, governments and regulators with clear, comparable data to inform their decision making.”