ESG (Environmental, Social, and Governance) refers to a set of criteria that is used to evaluate a company's performance and sustainability in these three areas. ESG reporting involves the disclosure and communication of information related to a company's ESG practices, policies, and performance to stakeholders.
CDP (formerly known as the Carbon Disclosure Project) is an international non-profit organization that operates a global disclosure system for companies and cities to report their environmental impacts and actions. The CDP provides a platform for organizations to measure, manage, and disclose their environmental data, including carbon emissions, water usage, and forest conservation efforts.
CDP reporting is a specific type of ESG reporting focused on environmental aspects. By participating in CDP, companies provide standardized data on their environmental performance, which can be accessed by investors, customers, and other stakeholders who are interested in evaluating the environmental sustainability of a company.
CDP reporting typically includes the following elements:
CDP reporting is increasingly important as investors and stakeholders are placing greater emphasis on environmental sustainability and ESG performance. It allows companies to benchmark their performance, identify areas for improvement, and demonstrate their commitment to addressing environmental challenges. Furthermore, it enables investors to make informed decisions by considering a company's environmental risks and opportunities in their investment strategies.