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CDP to Integrate IFRS' Climate Disclosure Standard

CDP, a provider of climate research and a platform for environmental disclosure, and the International Sustainability Standards Board (ISSB) of the IFRS Foundation announced today that CDP will incorporate the IFRS' new climate-related disclosure standard into its platform for environmental disclosure.

According to the organizations, hundreds of companies reporting environmental sustainability data through CDP will begin using the IFRS S2 Climate-related Disclosures, which are currently being developed by the ISSB, starting with the 2024 disclosure cycle.

CDP operates a global environmental disclosure system that allows investors and other stakeholders to monitor and track the performance of organizations in important environmental sustainability areas, including climate change, deforestation, and water security. The platform gives firms annual scores – normally issued in December of each year – on each of the key categories.

According to CDP, the connection will facilitate the rapid acceleration of the ISSB's disclosure obligations for climate data. This year, more than 18,700 companies with a combined market capitalization of approximately $61 trillion revealed environmental data on the CDP platform, an increase of more than 40% from the previous year.

Paul Dickinson, CDP's Founder Chair, stated:

"As the only global environmental disclosure platform, with over 18,700 enterprises representing half of the global market capitalization disclosing in 2022, CDP is perfectly positioned to accelerate the global economy's adoption of the ISSB's climate Standard. This will enhance corporate activity and responsibility by giving financial markets, governments, and regulators transparent, comparable data to influence their decision-making."

The ISSB launched the IFRS Sustainability Disclosure Standards in November 2021 at the COP26 climate summit in order to offer a worldwide baseline of disclosure requirements that may be adopted by governments and included in broader reporting systems. The ISSB announced initial versions of its standards for general sustainability and climate-related disclosures in March 2022, with the intention of publishing complete standards in 2023. The board has announced that the new standards will mandate Scope 3 emissions reporting and climate scenario analysis.

ISSB Chairman Emmanuel Faber stated:

"The ISSB is committed to establishing an effective and efficient disclosure ecosystem for global capital markets, which will result in decision-useful climate-related disclosures. By linking the CDP platform with the ISSB's climate-related Standard, we are decreasing the burden on entities and moving closer to a single disclosure language."

Today, at the COP27 conference, also announced the formation of a new partnership framework, kicking off with more than 20 partner organizations, aimed at assisting preparers, investors, and other capital market stakeholders to prepare for the adoption of the new IFRS sustainability reporting standards.

ISSB Chairman Emmanuel Faber stated:

"We are collaborating towards the introduction of meaningful sustainability disclosures for capital markets, which will equip market participants with the right information to facilitate improved economic and investment decision-making."

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