CDP (the Carbon Disclosure Project) is an international NGO providing a climate change disclosure platform for investors, companies, organizations, cities, and states. No other organization is gathering this type of corporate climate related data and providing it to the marketplace. More than 7,000 companies submitted data in 2018.
Picture 1: From CDP.
It encourages companies and organizations throughout the world to measure, disclose, manage, and hopefully reduce their greenhouse gas emissions. CDP can therefore add new information to business decisions and can accelerate the speed of strategic changes within the company and throughout its supply chain.
Investors and analysts around the world are increasingly relying on CDP data among other data sources. Companies such as Sustainalytics, Morningstar, MSCI, Bloomberg and more seem to be relying on such data to provide its users with ESG (Environmental, Social, and Governance) ratings in their investable universes so that investors can better integrate ESG information into their investment decision-making.
CDP in the Nordic
It is interesting to observe submissions in the Nordic and how they are different between the countries. Although Sweden had the highest number of submissions, by far (see picture 2), it was Finland and Iceland who had the highest ratio of A and B scores from total scores (see pictures 3 and 4). Iceland had relatively few submissions but the scoring is improving between years.
Picture 2: Total Nordic submissions 298.
From Iceland’s point of view, there was only one company that received a scoring this year, Landsvirkjun (the National Power Company of Iceland). It increased its score from 2017 from C to B in 2018. This is a great example Landsvirkjun is making for other Icelandic companies who might consider supporting and submitting to this international climate change disclosure platform.
Picture 3: Total number of scores, A-27, B-40, C-45, D-36, F-130, N/A-20.
Picture 4: A or B scores, ICE-33%, SWE-18%, DK-12%, NO-28%, FIN-37%.
CIRCULAR solutions provides sustainability and ESG consulting and solutions and can support companies who are or are considering submitting to CDP. CIRCULAR provided Landsvirkjun with assistance in its 2018 CDP submission.
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