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Carbon Disclosure Project

Topics Covered: Conservation and pollution related issues.

Carbon Disclosure Project

What to study?

For Prelims: Key findings and overview.

For Mains: Significance, performance improvements and challenges ahead.

Context: The CDP India annual report has been released by CDP (Carbon Disclosure Project) India.

The report examines carbon reduction activities of companies.

Top 4: United States of America secured the top spot followed by Japan, United Kindom and France.

Key findings:

  1. The boards of 98% of the firms directly monitor climate change risks with top management integrating these concerns in performance evaluation.
  2. 2/3rd of the 59 firms that were surveyed use climate analysis tools to formulate their business strategies.
  3. Improvement in disclosure rate has primarily been driven by investors who are actively pushing companies to reveal climate risks and take steps to reduce their carbon footprint.
  4. Among the key focus areas of Indian firms is renewable energy. According to the report, 23 companies reported renewable energy targets in 2019, a 44% rise over 2018. Of these, Infosys, Dalmia Cement and Tata Motors have reported 100% RE consumption.

Overall performance of India:

  1. India is now among the top five countries globally when it comes to adopting science-based target initiatives (SBT) with as many as 38 Indian companies in 2019 committing to going beyond policy requirements to plan urgent climate action, a significant rise from 25 firms in 2018.
  2. In 2019, up to 57 of the 59 responding companies stated that they have a process for risks assessment; 51 declared that their process of identifying, assessing and managing climate related risks is integrated into the multi-disciplinary, company-wide risk identification, assessment, and management process which is considered a best practice.

About CDP:

  • The CDP is a global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts.
  • It collects and collates self-reported environmental data in the world.
  • It is aimed at measuring the carbon reduction activities undertaken by different companies and firms operating in various countries across the globe.

Sources: the Hindu.