The need for businesses to track and monitor their environmental impact is growing. One non-profit organization ensuring this happens via an environmental reporting system is the Carbon Disclosure Project (CDP).
Thousands are already participating in this project which aims to collate data on climate risks and opportunities, energy efficiency, deforestation, carbon emissions, and water use. Continue reading to learn more about this project and how it can help businesses.
About the Carbon Disclosure Project (CDP)
The Carbon Disclosure Project (CDP) is a global non-profit that manages a system for environmental reporting by municipalities, corporations, and the world’s biggest organizations and companies across the globe. Thousands participate in the project by providing self-reported data and environmental information via the CDP portal to answer its yearly questionnaires.
The questions aim to gather data on organizational climate change opportunities and risks, water use, deforestation, energy efficiency, and carbon emissions. The non-profit organization was established in 2000 and has become one of the biggest sources of worldwide environmental performance data since then. By gathering this data, CDP enables stakeholders and investors to easily access climate information by request.
Additionally, they measure businesses according to their answers on their yearly questionnaire. The goal is to highlight leaders in various sectors as a means to incentivize environmental performance improvements. As a result, CDP encourages businesses to promote accountability, transparency, and environmental action in support of a more sustainable economic model.
Why is reporting to CDP important?
Reporting to CDP enables businesses and organizations to address worldwide risks of deforestation, water security, and climate change. These threats have only become more prevalent and need sustained actions to decrease the risk. This means moving toward a low-carbon economy.
Reporting to CDP shows your environmental targets and commitments and acts as an excellent initial step to reducing negative environmental impacts. Additionally, actions are incentivized by providing valuable information to interested parties in relation to environmental sustainability. This naturally appeals to consumers and investors.
The CDP also offers insights on enhancing targets to help you align with the latest science. Contributing to their database also means improved global knowledge base on crucial environmental problems. Their database measures the entire decrease and increase in polluting greenhouse gasses and natural resources. You will also have a greater awareness of your opportunities and risks to enhance your overall business strategy. Lastly, businesses that can distinguish themselves in relation to environmental impact will save on costs and enhance their overall brand purpose.
How to disclose through CDP?
Once a business has become a signatory of CDP, you will be given your very own dashboard. Here you can access the platform’s Online Response System (ORS). This will have lots of questions based on your company profile.
The dashboard will also house answers in relation to requesting authorities asking for information and the questionnaires they have requests to respond to. If you have not registered your contact information with a company before, you will have to complete a full form for permission to access your business dashboard.
Businesses that wish to take environmental action seriously should absolutely report to the CDP. Doing so will help them understand their environmental performance, identify risks and opportunities, and make improvements. Additionally, it will impress and attract investors and consumers and improve brand purpose and performance.