Timeline for 2024 CDP Submissions

Summary: Anticipated Timeline for 2024 CDP Reporters
About CDP:
The Carbon Disclosure Project (CDP) is a global non-profit managing the largest voluntary environmental reporting platform. In 2023, over 23,000 companies, including 73% of the S&P 500, reported data to CDP, which is used by key stakeholders like investors and major corporate buyers.
Key Takeaways:

1. The 2024 CDP questionnaire has a revised scope and structure, integrating climate, forests, water security, biodiversity, and plastics.
2. There will be a significant increase in companies asked for data on forests and water security.
3. Companies need to ensure adequate resources for reviewing and validating responses to align with upcoming regulatory disclosures.
   The 2024 CDP Questionnaire:
   The revised questionnaire consolidates previous separate questionnaires into one, addressing broader sustainability topics. Companies should prepare to manage legal risks and avoid inconsistencies with compliance-driven reporting.
   Key Changes to the CDP Reporting Process:
4. Integration of climate, water security, and forests into a single questionnaire.
5. New questions on general environmental governance, strategy, and risk management.
6. Introduction of a double materiality approach.
7. Alignment with emerging ESG laws and regulations.
   Key Changes to Existing CDP Questions:
8. More detailed reporting on financial impacts and costs related to sustainability.
9. New questions on defining “substantive” environmental effects.
10. Deeper inquiries into the environmental competencies of senior leadership and formal board oversight.
11. Comprehensive disclosure on the use of environmental scenario analysis.
    Action Items for Reporting Companies:
12. Start preparing now, as the reporting deadline is September 18th.
13. Leverage existing ESG disclosures.
14. Ensure thorough review and validation controls.
15. Develop a clear definition of “substantive” environmental effects.
16. Integrate Finance into the sustainability program.
17. Adopt a practical and careful approach to expanding CDP disclosures.
    Conclusion:
    Companies need to adapt to the new CDP reporting process, balancing limited resources while ensuring accurate and comprehensive disclosures.