Carbon Disclosure Project (CDP)
The Carbon Disclosure Project is an independent not-for-profit organization holding the largest database of corporate climate change information in the world.
In 2010, 3,050 organizations from across the world’s major economies measured and disclosed their greenhouse gas emissions and climate change strategies through CDP. This information is made available at the heart of business, policy and investment decisions. Interested parties include institutional investors, ranging from pension funds to insurance companies through to blue chip companies holding a total US$ 71 trillion in assets under management, policymakers and their advisors, public sector organizations, government bodies and also academics and the publi
Why it pays to join CDP
Climate change can be called a problem of ‘deep uncertainty’. Many links in the chain of anthropogenic greenhouse gas emissions, physical changes in the climatic system and their socioeconomic impacts are difficult to quantify. However, financial and policy decision-makers often cannot simply rely on a best guess as to how the future will unfold, and the risks associated with climate change need to be embedded into their policies and strategies.
In order to proactively manage the risks, governments, global corporations and institutional investors must engage with their business partners. This includes requests for disclosure of emission levels, environmental impact assessments, as well as full disclosure and reporting on sustainability management policies and practices. Initiatives such as the Carbon Disclosure Project can be utilized in this context. Transparency as a consequence of disclosure, or simply meeting market needs, are good reasons for representatives to publish their organization’s greenhouse gas inventory and ultimately mitigate the risks of climate change.
CDP is worthwhile because it:
- ensures transparency of reported GHG data
- enables comparison of disclosed information
- serves as a preparation for possible legislative requirements
Reasons for verification
In the current carbon dependent economy, the integrity and robustness of this data is being questioned more than ever. When planning for investments, procurement and legislation, the level of assurance regarding data provided by corporations on greenhouse gas emissions should be as high as reasonably possible. Verification can provide credibility and reassurance regarding the integrity, completeness and transparency of the statements that are made.
Due to increasing concern about improving environmental quality, there has never been a better moment to harvest the benefits of having greenhouse gas emissions data independently verified. Verification is becoming a market access issue as global buyers and institutional investors are demanding proof of performance claims.
Some reasons for having your greenhouse gas information and data verified:
- Verification demonstrates a commitment to being fully transparent and accountable to stakeholders, and thus generates even more trust.
- Verification can differentiate a business from the competition – providing a distinct market advantage – and can therefore open up further business opportunities and markets.
- Verification enables a specific and precise claim of assurance and presents this in an easily understood form.
- Verification provides credibility to prospective buyers and investors, which reduces the risk inherent in the investment and procurement process. This facilitates investment in the business.
- Verified data increases corporate ranking in CDP’s league table.
- Verification can align a company‘s business strategy with government policy and regulation, which may be advantageous in any present or future applications for government funding support.