Climate commitment goes by disclosure
Companies that want to operate on a global market must be able to demonstrate concretely, and publicly, that they can respond to increasingly stringent environmental and climate policies. In fact, investors and consumers are increasingly asking the private sector for more information regarding climate change, and how companies are contributing to the decarbonisation necessary to limit the rise in global temperatures below 1.5 ° C as required by the Paris Agreement .
Attention to the climate given by the private sector has always been at the center of CDP analyzes, which every year through its questionnaires guides the private sector to communicate effectively its strategies for measuring emissions and managing the risks and opportunities climate-related.
Already in 2019, more than 8,000 companies globally reported CDP, an increase of about 20% compared to the previous year which represents more than 50% of market capitalization globally, which confirms the growing centrality of sustainability at company level.
But despite the trend still today, too often, companies consider the reporting and dissemination of information relating to the climate as the final step of their climate strategy, the last stage of the "journey" for the correct management of their environmental impacts.
The CDP reporting system is actually much more: it is able to photograph the current situation of the private sector by presenting actions that companies have already taken, CDP does not invent anything assigns only a score that it is able to show to investors and market the company's level of preparedness in climate change mitigation.
It is important to underline that especially for investors an annual communication cannot be enough, companies must adopt sustainable practices and align themselves with a broader reference framework for a global and unprecedented climate action, the one necessary to ensure that the net-zero transition is real.
What can we expect this year from the reporting of climate-related information of Italian companies? In fact, the deadline set by CDP - August 26 - is missing 20 days for the replies to be sent by companies that want to join the CDP 2020 Reports and obtain their own score.
This year over 80 Italian companies have been asked to respond to the CDP questionnaires, a certainly interesting fact that confirms the growth and importance of disclosure in the private sector emerges by looking at the list of companies of the FTSE MIB, as of July 31, 2020: well 2 / 3 of these companies disclose their environmental data.
Another fact that confirms the growth of the attention of companies towards the fight against climate change, and above all the priority role they can play in the transition towards climate neutrality and sustainable development, is the consideration given to climate-related risks: more half of Italian companies have identified that climate risks could have a substantial financial or strategic impact on their businesses.
From the responses given by the companies, the risk most identified was that inherent in the increase in the severity, and intensity, of extreme weather events, and it is no coincidence since these have never been so evident and alarming as in recent years: the environmental impact of climate change is now quantifiable and evident to everyone.
It is important, however, that companies understand that we cannot talk about climate risks without considering the related opportunities, the value of climate-related opportunities is in fact far greater than the investment made.
Another interesting fact is certainly the increasingly important role, also in the reporting system, of science-based targets. Developing and validating "science-based targets" is now a leadership practice recognized by CDP's scoring system, companies that are able to adopt ambitious targets increase the trust of investors, customers, workers and organizations for the environment.
CDP in light of the growing urgency of the climate crisis, which will probably accelerate even more due to the Covid-19 emergency in recent months (the pandemic has in fact exerted further pressure on companies to reveal their climate-related risks), will have in future an increasingly central and guiding role. CDP questionnaires will increasingly align with net-zero emissions objectives and the decarbonisation level required to keep the global temperature rise below 1.5 ° C, as described in the Fifth Assessment Report of the Intergovernal Panel on Climate Change (IPCC ), and in the Paris Climate Agreement.
Since 2017 Carbonsink has been CDP's partner in Italy in Climate Change Reporting. As an accredited CDP partner, Carbonsink helps companies improve the compilation of the CDP questionnaire, assessing the company's climate risk both at a strategic and operational level.
The objective is to facilitate the use of the CDP reporting system regardless of the Company's level of preparation and to support the organization during the data collection and questionnaire compilation work, while at the same time facilitating all those activities useful for improving its strategy on climate as well as your CDP score.
Carbonsink has decided to adopt different approaches and strategies depending on the level of preparation of the company, also supporting all those companies that have never made disclosure, helping them in defining an ad hoc climate strategy that allows to communicate the concrete commitment in the towards climate change and obtain a leadership position in non-financial reporting and in sustainability indices.
Discover Carbonsink' services dedicated to CDP
More information on the Italian situation available in CDP Reports
Camilla Pollini, Communication Officer Carbonsink