Late in May, we once again welcomed key CDP stakeholders for our flagship event in our region – the CDP US Workshop. While it was wonderful to reunite with allies in our shared mission, the Workshop was also a reminder that the climate crisis is truly at our doorstep.
At CDP, we know that data lies at the heart of the United States response to the climate crisis. This is why we have invested in major changes to our disclosure system, which we discussed at length throughout the day.
But many challenges and opportunities remain for the biggest US economic actors, which we explored throughout the event. Here are our main takeaways from this year’s US Workshop.
1. From postcards to our new CDP Portal
As I reminded our audience at the Workshop, CDP has come a long way in nearly twenty-five years. CDP started by sending out 245 postcards to companies requesting their data. Now we have launched a new, advanced digital Portal for corporate disclosure.
In her keynote presentation, Chief Impact Officer Nicolette Bartlett discussed key changes to the CDP system beginning this summer, including our new streamlined, single questionnaire, ongoing work to align with other frameworks, improved disclosure for SMEs & financial services companies, CDP’s brand new and improved disclosure Portal, plus key updates for the public sector.
2. Open dialogue on CDP’s future
Nicolette and Director of Supply Chain and Reporter Services, Simon Fischweicher, then opened an engaging conversation about CDP’s future, focusing on the biggest questions our stakeholders have been asking us about our future direction.
Participants offered their opinions and participated in an open discussion on issues such as the possibility of opening the disclosure cycle to a year-long rolling basis. Companies said this could prove challenging as it may prompt them to push back their inputs and delay scoring, which could make apples-to-apples data comparisons more difficult. Participants also reinforced the fact that Scope 3 disclosure remains a primary challenge as it is still in its infancy and it remains difficult to get supplier numbers in time to meet deadlines.
3. CDP supports environmental reporting compliance
Throughout the morning, presentations focused on the rise in mandatory reporting frameworks, with a focus on EU taxonomy. For disclosers, compliance is now a priority. Many are already subject to mandatory reporting, especially US companies operating in Europe.
Audience members at the Workshop learned how CDP’s new questionnaire advances our already-strong alignment with the world’s most relevant environmental frameworks and standards. CDP has committed to being the first platform working hand-in-hand with ISSB to have the first tagged and aligned data set in 2024. From this year forward, CDP disclosure is aligned with the ISSB climate standard (IFRS S2). You can learn more about CDP’s alignment with disclosure frameworks and standards here.
4. Driving nature disclosure
Another sustainability hot topic that we explored at the US Workshop: disclosure on nature. Conversation revolved around organizations wanting to take action on projects such as funding tree restoration. Within this context a question was posed: how do you get started in setting science-based targets for nature and who needs to be involved?
Here emphasis was made on the fact that forest cover changes over time, requiring a holistic view of nature. This very much depends on access to biodiversity data to ensure the right steps are taken in the protection of specific areas and species. As one of the participants stated, there must be a “nature data fusion” where we are able to merge all viable data sources and tools in order to yield the best insights for nature-based solutions.
5. Involving the public sector
Across the day, attendees from both the private and public sector discussed how public sector disclosure and action supports economic security and the health of the planet.
In a session on investor use of public sector disclosure data, Brown Advisory provided a brief presentation on their sustainable investing philosophy. They emphasized that, for them, value is about the intersection between climate and nature as well as capital and community – all of which should be underpinned by good governance.
In a session focused on public-private partnerships for emissions reductions, panelists explored how such collaborations at the local level are achieving emissions reduction targets, digging into their action plans and the incentives for all stakeholders involved. Although cities account for roughly 76% of global carbon emissions, since they are shaped and financed by the private sector, some control only 4% of their emissions – making such collaborations critical for impactful decarbonization in cities everywhere.
6. Activating private markets
For years, CDP has supported private companies as their interest in sustainability and disclosure has grown. In a session focused on private markets and opportunities for asset owners and fund managers alike, participants explored global trends in activating private companies to begin their sustainability journeys. Private companies, it was stressed, should not try to set net-zero targets without a pathway to actually getting there. A good practice is to bring carbon reduction/ESG into the normal diligence process.
The conversation turned to the importance of engaging with the full value chain around sustainability issues in order to bring private companies to the table. Walmart, for example, ties its supply chain financing to CDP suppliers’ data and scores. In other words, they are using financial incentives to drive private companies to disclose and take action.
7. Progress toward impactful decarbonization
While attendees at the Workshop explored emerging topics and critical updates in the sustainability space, we also dedicated much of the day to upskilling participants on decarbonization.
In a session focused on the low-carbon transition, participants discussed strategies for success, including transition plans, risk and opportunity reporting, net-zero targets and supplier engagement, offering their own insights into best practices. Another session dedicated to addressing Scope 3 emissions, highlighted the huge risk but also huge opportunity in supply chain engagement around decarbonization, since 71% of companies disclose their Scope 1 and 2 emissions but only 20% disclose their purchased goods and services emissions. Panelists emphasized how collaboration is key to understanding and reducing Scope 3 emissions.
For all who attended, I hope the Workshop was a reminder that CDP is here to set you up for success. We are evolving to best serve your needs, to continue to point you to best practices, provide cutting-edge technical knowledge and bring you into collaboration with like-minded partners.