Is it Worth Reporting Carbon Emissions to CDP? The Case for Reporting, including Data on Bloomberg Terminals

Recently two companies told us 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 (firms are not required to report emissions or can only report Scope 1). We disagree. While some of these critiques are valid and we 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 like Walmart, HP, and Bank of America asking their top suppliers to report as well) and 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 emission data reported to the CDP and then passed along to Bloomberg terminals (used daily by investors). We encourage firms to ensure their CFO and investor relationship officer are aware of trends like this.