· 2 min read
Illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: Over 23,000 companies, representing $6.4 trillion in purchasing power, are reporting environmental data through CDP (formerly the Carbon Disclosure Project)
• Despite global political and economic challenges, CDP CEO Sherry Madera emphasizes that climate disclosure is increasingly seen as a business necessity, not just an environmental initiative
• Companies are prioritizing transparency to secure competitiveness, mitigate risks, and access capital
🔭 The context: Corporate climate disclosures have grown by 24% year-on-year, even in regions without mandatory reporting frameworks, like the U.S.
• However, "greenhushing", quietly implementing sustainability strategies to avoid public scrutiny, has risen amid pushback against ESG
• Businesses now view disclosure as a means to align with supply chains, optimize investments, and future-proof operations
🌍 Why it matters for the planet: Transparent reporting enables businesses to lower emissions collaboratively across supply chains, contributing to global sustainability goals
• Initiatives like Walmart’s Gigaton Project, which achieved its emission reduction target six years early, highlight the transformative potential of data-driven collaboration
⏭️ What's next: Mandatory disclosure requirements are expanding globally, with a push to harmonize frameworks for efficiency
• Businesses are urged to integrate sustainability into financial strategies, with CFOs playing a critical role in funding disclosure and climate action initiatives
💬 One quote: “Transparency equals opportunity. Leading companies know climate action is no longer optional, it’s a necessity,” - Sherry Madera, CEO of CDP
📈 One stat: 86% of S&P 500 companies now voluntarily disclose environmental data, reflecting a growing commitment to sustainability
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