Recently two companies told me they did not see the business case for reporting carbon emissions to the Carbon Disclosure Project (CDP).
Their rationale is that the reporting standards are too flexible because firms are not required to report emissions or have the option of only reporting Scope 1 emissions.
I disagree. While some of these critiques are valid and I hope the CDP moves toward verification, perhaps using The Climate Registry verification protocol, the CDP has become the leading registry for large companies, with firms including Walmart, HP, and Bank of America asking their top suppliers to report as well.
It also provides firms with an additional vehicle to market their environmental programs. Reported emissions information is increasingly being compared across companies by investors and researchers.
Here is a screen shot of emissions data reported to the CDP and then passed along to Bloomberg terminals, which are used daily by investors. I encourage firms to ensure their CFO and investor relationship officer are aware of trends like this.
Paul Baier is vice president of sustainability consulting at Groom Energy.