When we started the Carbon Disclosure Project (now known as CDP) over fifteen years ago, the term disclosure was barely used in relation to climate change. Today, a major effort is underway to establish a global framework for climate-related financial disclosure. What has changed?
Disclosure is a word newly prevalent in the climate change discourse. In sum, it means companies measuring and reporting information about their environmental performance and impacts so that investors can better understand its relevance to the future of the business. In the face of unparalleled global challenges – climate change, water scarcity and deforestation – disclosure is a vital first step in managing and reducing environmental impact. And following last December’s unprecedented Paris Agreement, signed by over 170 countries last week in New York, business has a critical role to play in the transition to a clean, sustainable economy.