CDP’s largest disclosure drive to include taxonomy reporting pilot

The list of high-profile signatories include France’s central bank.

More than 15,000 companies around the world will have the option to report against the EU green taxonomy and on plastics use for the first time.

Each of the selected company boards has received a request to disclose data on their environmental impact from green disclosure non-profit CDP, which is undertaking its biggest data collection drive this year.

A total of 746 financial institutions have endorsed CDP’s call for information, including CPP Investments, the European Investment Bank, Aviva, the New York State Common Retirement Fund and Storebrand.

Banque de France is the first central bank to join as a capital market CDP signatory. Singapore central bank MAS, which signed an MoU on promoting sustainability disclosures with CDP, is absent.

The number of reporting organisations routinely exceed the number of those initially contacted by the CDP. The body reported a record 18,700 disclosures in 2022 – a 38 percent increase from the year prior – but only solicited data from 10,400 listed companies.

A total of 680 financial institutions requested company disclosures via CDP’s reporting system in 2022.

Other sustainability topics in this year’s CDP disclosure template include climate change, deforestation, water security and biodiversity. The template is set to be updated in 2024 to incorporate soon-to-be-published global disclosure standards being developed by the International Sustainability Standards Board (ISSB).

“Despite suggestions that investors are deprioritising ESG considerations, this year’s letter to the board shows the complete opposite,” said Paul Dickinson, CDP founder and chair.

“What is more, regulation is coming,” said Dickinson. “Disclosure is already mandatory or soon to become so in most major economies, including the UK, EU, Brazil, Japan and the US. Companies still lagging behind are simply out of touch with market reality and are overestimating their own resilience.”

While stringent environmental and ESG reporting rules are anticipated in most of the world’s major markets, CDP provides a convenient disclosure route for companies not yet subject to these requirements or for those seeking foreign investment.

CDP also named a handful of high-impact companies that have so far refused its requests, including Berkshire Hathaway, Exxon Mobil, Saudi Aramco and Tesla.