ISSB Climate Disclosure incorporated into CDP platform

CDP and IFRS Foundation announced today at COP27 that CDP will incorporate ISSB’s climate-related disclosure standards into their global environmental disclosure platform.

CDP’s incorporation of the International Sustainability Standard Board’s (ISSB) Climate Related Disclosure (IFRS S2) is a major step towards the development of a comprehensive global baseline for capital markets.  IFRS S2 will be merged into CDP’s existing questionnaires for the 2024 disclosure cycle.

It should also be noted that on November 3, the ISSB confirmed that climate-related scenario analysis will be required for companies to report on climate resilience and to identify climate-related risks and opportunities to support their disclosures. The ISSB also agreed to provide support to preparers on how to undertake scenario analysis using the TCFD guidance.

The ISSB Climate-related Disclosures are consistent with TCFD’s framework – the key difference being that IFRS S2 is a standard, and industry specific – requiring disclosure of industry-based metrics, whereas TCFD are recommendations and not industry specific.  With the IFRS S2 – Scope 3 emission disclosure is mandatory.

ISSB also announced today a new Partnership Framework designed to support preparers, investors, and other stakeholders as they prepare to use the IFRS Disclosure Standards.