The latest insights from CDP, the global environmental disclosure system  

After a summer of global climate disasters, and the stark warnings that came with the IPCC’s Sixth Assessment Report in August, there is an urgent need for companies, governments and investors to drive action at scale.  

In September, CDP’s Science-Based Targets campaign launched, with 220 investors (holding $29.3 trillion in assets) asking 1,600 companies to set science-based emissions reduction targets in line with 1.5°C warming scenarios. Climate Week NYC also took place, calling for more ambitious action ahead of COP26.  

In August, Water Watch – CDP’s Water Impact Index was launched alongside World Water Week. The index is a first-of-its-kind deep dive into the impact of companies and portfolios on water security. 

Looking upstream: acting on water pollution 

In June, we saw global leaders meet at the G7 Summit and put climate change at the forefront of the international political agenda. The G7 recognised the need to increase the adoption of ambitious 2030 emissions reductions targets and net-zero goals aligned with a 1.5°C and resilient future, at the national and corporate level. G7 leaders have declared their commitment to move towards TCFD-aligned mandatory disclosure pathways and asserted that these reporting regimes should not only tackle climate change, but address disclosure with a broader environmental approach to include deforestation and water security. 

How TCFD recommendations can be bolder for a 1.5C future 

In response to the Task Force on Climate-related Financial Disclosures’ (TCFD) public consultation ahead of an update on its recommendations, CDP has gathered its key feedback and comments, considering the continually evolving landscape of environmental disclosure and the latest climate science. 

Four vital steps to demonstrate ambition and action 

In the aftermath of the IPCC report, and with COP26 fast approaching, Climate Week NYC was a moment for us to take stock and reassess whether our current goals and initiatives will truly help us achieve a net-zero world by 2050. For those looking to lead the way to a better, more sustainable future, CDP published four steps to take action. 

How can companies handle so-called 'residual emissions'? 

It is key that companies comprehensively calculate their carbon footprint, and then take ambitious measures to reduce emissions. However, some limited emissions may remain unavoidable. Those should be addressed via carbon compensation programs, ranging from purchasing voluntary carbon credits to investing in early-stage carbon offsetting projects.