Hearing About CDP Everywhere! Here's Why?
What is CDP?
CDP full form is carbon disclosure company. It was based on United Kingdom, Germany, and united nations of America. It helps companies and cities to disclose their environment impacts. They help the companies to avoid excessive use of greenhouse gases. Their motive is to have a sustainable economy which works for both humans and environment. It was established in the year of 2000 in UK. They are funded by government and philanthropic funds. They are governed by set of trustees and directors. CDP local offices are in 90 countries above. More than 500 cities measure and disclose data annually. In 2021, over 14 thousand companies disclosed by CDP.
Climate Change Risks
Based on 998 cities tracked by CDP, four out of five cities suffer with climate hazards like heavy rainfall, extreme heat, and drought. Quarter of cities are suffering with heat waves. It is expected to increase its frequency by 2025. Elderly and low-income households are highly exposed to climate hazards. Cities are prime cause for climate change. Cities are responsible for 70% of greenhouse emission. Between 2010 and 2020 deaths was 15 times more by floods, heatwaves in vulnerable areas. 62 percent of cities are suffering from climate hazards. It would increase more in future. While the cities are fining ways to control the carbon gas emission. It should also think about the poverty, as it is estimated by the world bank that 132 million people will suffer from poverty due to climate change. 10% of richest population are responsible for the emission, whereas only 50$ of the population is responsible for 7% of emissions.
A year long studies showed by McKinsey global institute researched about climate change impact in all countries in next three decades. It is said that India and Pakistan would be the first two countries to experience massive heatwaves. It would rise by 14% in 2050. Countries are expected to major at least in one major type on physical, human and natural capital by 2030. Increasing of global warming can lead to loss of money
What Cities Should Do Then?
Many countries faced issues in 2022 like floods in Pakistan and assam, extreme heatwaves in United Kingdom, water scarcity in Qatar. Many people are dying due to these problems.
The first key step to reduce carbon emission is to measure the problem 65% of the cities are taking actions for reducing caron emissions. 55% have taken climate change assessment. Second step is to set emission targets 46% of the cities have kept a target on carbon reduction. As the cities took some actions to reduce emissions, they found that the health condition of people was improving and the economic benefits has increased. Over half of the cities also saw rich biodiversity and more green space.
Need For 'People Centered Climate'
In December 2015. Leaders from all over the world shook hands to limit the global temperature. The economics of climate changed drastically. Coal prices were cheaper than the solar and wind energy. Electric vehicles were getting improved. But at the same time, the countries have faced severe wildfires, storms, and heat waves in the first half of 2019. Studies also showed that increase of half of the temperature can cause huge threat to the globe. As the climate change is increasing, people centred climate action starts with talking about the policies making process and consider the residents need while discussing the problem.
According to CDP these bring better results when it is targeted to the vulnerable groups like low-income households, elderly people, and citizens with health issues. The CDP also talked that government should help the cities to overcome the climate issues. CDP also advised the cities to set science-based targets and include the needs of the citizens. Over 700 major business took science-based target to reduce emissions. Some companies are also planning for a zero net emission by 2050. Some governments pledged for zero net emission goals. Over 68 countries took this pledge. Almost every city taking people centred climate action, over 95% identified the co benefits from the climate. It also improved air quality and reduction of health conditions. 85% have also noticed the social and economic benefits. Chicago, Athens, Hermosillo, Go yang city, and Auckland has witnessed cleaner air, improvement in health, economic and environment benefits.
Annual Disclosures By Corporate
In CDP’s new 2025 strategy, they recognised the urgent need for climate change, transparent plans from cites and companies. In next five years, CDP will broaden their spectrum of stakeholders to cover environment challenges. They will also determine whether zero net is achievable or not. India performance on climate action for 2050 has been rated high in GHG emissions and mild in renewable resources. In COP26, India declared that 1.5C will be achievable and achieve net zero emission by 2070.
Economic and financial goals in Zero net ambitions set by India are: India’s new climate goals will significantly compromise its target of a USD 5 trillion economy by 2024-25 according to global forecasting firm Oxford Economic. India will need to invest $200 billion p.a. of funding over the next two decades in order to become NetZero by 2070, accounting for progressive increases in expenditure as low-cost technologies are exhausted.
ESG full form is environment, social and governance reports. Its disclosures on details as GHG emissions, air pollution emission, energy use, etc. Many countries found the importance of non-financial disclosures through mandatory regulations
In July 2021, G7 finance ministers and central band members addressed the ESG for challenges multilateral economic cooperation. This was made mandatory in many countries like China, Japan, South Korea.
Science Based Targets
Science based targets helps companies to meet the recommendation of task force on climate related finance (TCFD) regarding targets. SBTI is one the growing initiative which is designed to highlight the needs to be science-based target and prove the transparency of decarbonization by corporates.
India leads the SBT disclosures and ranks 7th globally. 44% of Indian SBTI committed companies already set the targets related to different climate scenarios and others. As per 2021 data, 17 Indian companies set the most ambitious target for 1.5C future. Wipro was the first Indian company which validated SBTI net zero targets. The latest IPCC reports states that global emissions must be on declining stage between 2020 to 2025.
India’s goals to zero net target, requires more companies to set new targets by correct measures and disclosures. As the climate change can be seen in water scarcity, rising prices and polluted air, these factors can be risk for the companies as millions of dollars might be in loss. Aligning with CDP helps companies to be environment friendly and change to climate change mitigation for future.