Companies will have to set a much broader range of sustainability targets under draft new European Union reporting standards, environmental impact body CDP said on Tuesday.
Authorities across the world are writing reporting standards to combat 'greenwashing' where companies exaggerate their green credentials to attract investors pouring trillions of dollars into sustainable assets.late on Friday for public consultation. Final standards will be sent to the European Union's executive European Commission by November for adoption.
CDP has emerged as the world's biggest repository of environmental data submitted on a voluntary basis by companies, which are under pressure from their shareholders to disclose how they plan to navigate the transition to a lower-carbon future. "Just 5% of European companies disclosed strong targets covering their emissions, deforestation, and water use to CDP in 2021, so standardising disclosures on nature and biodiversity will be critical as nature clearly remains a blind spot for many companies," Wolfrum said.
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