This is a fairly wide reaching review of their approach to corporate disclosure, which CDP refers to as “Reimagining Disclosure”. In reality, it’s an evolution rather than a revolution, albeit a significant change for some elements of disclosure and for some sectors.
These sectors include:
- Energy Cluster: Oil & Gas / Electric utilities / Coal
- Transport Cluster: Transport vehicle manufacturers / Transport services
- Materials Cluster: Metals & mining / Chemicals / Cement / Steel
- Agricultural Cluster: Agricultural Commodities / Paper & Forestry / Food, beverage & Tobacco
There are two keys themes within this process. The first is that CDP are looking to adopt the recommendations from the Task Force for Climate-Related Financial Disclosure into their questionnaire framework. The most significant impact of these changes will be around how disclosing organisations incorporate climate change risk analysis into planning, strategy, and risk and opportunities reporting.
The second theme is a continued push towards sector specific reporting – for instance CDP will ask for organisations in the electric utilities or transport services sector to report against a specific set of criteria. To a large degree it’s likely that this change will be accommodated within the existing data collecting activities of most CDP respondents, but some preparation will be required to ensure robust data is available throughout the submission.
For some sectors (e.g. Agricultural Commodities), there will be further encouragement to report against all three programmes: Climate Change, Water and Forests. In some areas the reporting criteria is becoming more robust. The consultation, for instance, mentions substantive changes to the submission around context-based reporting – being able to identify water withdrawals from stressed water basins – and geolocation data for facilities exposed to significant risks.
As CDP’s only Gold Software Partner for Climate Change, Water and Forests, we’ll be responding to the consultation, which runs to the middle of September, on behalf of our clients. Our Gold Partner status means that Ecometrica is ideally positioned to assist with reporting across all programmes and assisting with the coming changes to the disclosure due in 2018.