Disclosure to drive evidence-based policy and action: an introduction to CDP’s Government Partnerships program

Tatiana Masmela, Lead – External Affairs

June 16 2023

Governments are undoubtedly essential to our ability to meet our global goals of limiting global warming to 1.5°C and halting and reversing biodiversity loss by 2050. We need governments to make bold and ambitious net-zero commitments, plans for their delivery and to work collaboratively with their international counterparts. But at the heart of government commitments and plans are the non-state actors who are essential to their delivery. A whole economy transformation is needed if we are to successfully transition to a net-zero, nature-positive world.

To accelerate action at the rate and pace needed, it is essential that policymakers and regulators urgently engage companies and subnational governments to enhance environmental transparency. This is also pivotal in ensuring governments have the data they need to truly track progress, identify gaps and areas of progress and ultimately, drive the transition.

The role of disclosure in tackling the environmental crisis is clear and has been confirmed by the many governments mandating disclosure worldwide, by the Intergovernmental Panel for Climate Change (IPCC) and most recently in Target 15 of the Kunming-Montreal Global Biodiversity Framework. As the world’s largest repository of corporate environmental data and the only independent, not for profit, global environmental disclosure system, partnering with CDP will be a vital means for governments to achieve their own goals and commitments.

CDP has long recognized this as a necessity, and through our Government Partnership program we engage and collaborate with policymakers, helping governments and other public institutions analyze the impact of non-state actors and spark meaningful action in their jurisdiction.

An important collaboration

Through the Government Partnerships program, policymakers can actively drive an increase in both the quantity and quality of environmental disclosure and action by corporates and subnational governments. CDP’s disclosure system, through which more than 18,700?companies?worth half of global market capitalization already?disclose, plays a critical role in supporting companies to?disclose?against new frameworks and standards.

CDP’s Government Partnership program is built around the principle of flexibility: no one size fits all. We recognize that no country,?region?or?jurisdiction?is the same or works within the same environmental or regulatory context.?So, our support will be tailored around a government or regulator’s?environmental priorities,?in line with ambitious scientific recommendations.?Through CDP’s engagement and capacity-building activities, governments can focus on ways to drive forward their?national?goals, from?promoting?1.5°C science-based emissions reduction targets?for companies and cities,;?or promoting zero-deforestation targets?throughout supply chains.

There are?a?number of?ways through which governments and regulators?already?partner with CDP:

Government endorsement?of disclosure

On behalf of governments, CDP invites companies and subnational governments to?disclose?information annually on their risks, opportunities,?impacts?and dependencies on the environment as well as their strategies for addressing those issues.

With an endorsement of CDP’s disclosure system,?governments?can?access standardized data and insights?that support the development,?refinement?and implementation of?evidence-based policies.?This robust and?comparable?information?is essential in allowing?policymakers to assess what action is currently being undertaken,?identify?gaps and engage the private sector to drive environmental action?by?setting science-based targets, transition plans and measures to protect and restore nature.

By endorsing CDP’s annual invitation to?disclose, governments send a strong signal to?corporations to progress their own transition journey, while?complying with?regulation on sustainability transparency and diligence;?and to shift their financial flows to 1.5°C and?a?nature-positive future. The government endorsement has proven an impactful mechanism of collaboration in Europe, where ministries?from France, the Netherlands and Italy?have endorsed CDP’s annual disclosure invitation in recent years, alongside the Brazilian Ministry of Science,?Technology?and Innovation.

"We have to strengthen reporting and sustainability approaches' consistency and visibility. This transparency effort encourages companies to take ecological transition into account within their investment decisions."?Christophe?Béchu, French Minister of Ecological Transition and Territorial Cohesion.

Bespoke projects

CDP?also?works with governments and regulators through bespoke projects designed to best fit?their specific requirements, local?contexts?and government systems, producing insights,?tools?and tailored information to enable them to meet their environmental goals in line with global frameworks and standards.?CDP’s global disclosure system is unique, supporting companies to?disclose?against new frameworks and standards?–?we aligned with the TCFD recommendations in 2018 and are set to integrate the ISSB climate disclosure standard from 2024.?This supports regulators in mandating disclosure, prepares companies, and provides a system through which they can?disclose?and share their data with a diverse set of global stakeholders.

The data collected through CDP disclosure?also supports the growth of sustainable finance markets and?provides?incentive for companies and their investors to improve their sustainability performance.?CDP’s disclosure mechanism is a tool that can bridge the gap between?capacity?building and tangible, robust disclosure that is aligned with global standards.

Our?platform can be used directly by regulators and policymakers, such as?our partnership with the Indonesia Stock Exchange .?Regulators and policymakers can also licence CDP’s disclosure questions and integrate them into their platforms, to cater for the needs of local stakeholders including SMEs,?as?with?the Hong Kong Monetary Authority .?This regulatory engagement is indicative of the rising profile of disclosure in the Asia?Pacific region more generally: in 2022?the increase in annual disclosures through CDP was highest in the Asia Pacific region.

Direct?access to robust data

Late last year, CDP launched the Government Dashboard:?an interactive tool which provides policymakers with direct access to data on corporate and subnational action at a national or jurisdictional level.?After registering for access, policymakers can?browse high-level overview data as well as thematic sheets on climate change, forests, water security and the TCFD.?The data available through the government dashboard will be pivotal in supporting governments with tracking and monitoring progress against their national and international environmental goals and commitments.

CDP data and insights have?shaped policy for more than 20 years, supporting governments and regulators to develop policies around mandatory environmental disclosure, which is now being implemented in most major economies.?Now, this invaluable data and insights will be even more accessible. The dashboard has been designed to ensure that data is comparable, easily accessed,?tracked?and?monitored?over time.

Explore a Government Partnership

If you would be interested in collaborating with CDP,?please reach out to the team at?[email protected] ?or find more information at?Government partnerships program - CDP .