measurement & reporting

In brief: CDP launches climate disclosure framework for SMEs

SMEs ‘risk facing competitive disadvantages if they are not brought on board’ with the energy transition, says The Carbon Disclosure Project.

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The Climate Disclosure Project, an organisation providing environmental impact reporting frameworks for investors, has launched a framework for small- and medium-sized companies of up to 500 staff.

The framework sets out the indicators that an SME should report on, such as annual emissions from purchased energy per unit of total revenue. Existing sustainability reporting guidelines “do not cater to SMEs. However, the transition is already underway, and if SMEs are not brought on board, they risk facing competitive disadvantages and losing out on low carbon opportunities”, the framework states.

CDP launched a private markets-specific framework in September, which has been adopted by investment firms including Coller Capital, Intermediate Capital Group, M&G, Neuberger Berman and Nuveen.