PSE is the world's first bourse to join Carbon Disclosure Project
The Philippine Stock Exchange Inc. (PSE) has become the first stock exchange to join the Carbon Disclosure Project (CDP) as a capital markets signatory, in a move aimed at strengthening its commitment to advancing sustainable finance and corporate transparency.
CDP is a global nonprofit organization that operates the world’s only independent environmental disclosure system, which is used by 22,100 companies representing two-thirds of global market capitalization. It helps investors, companies, and governments surface the information needed to make Earth-positive decisions.
As a signatory, PSE is now one of more than 540 global financial institutions, representing over $110 trillion in assets, collectively requesting companies around the world to disclose their environmental impacts through CDP.
“Our role as a capital market institution goes beyond facilitating investments. By joining CDP, we are signaling to our listed companies and investors that environmental transparency is essential to long-term value creation. We encourage all PSE-listed companies to disclose through CDP and demonstrate their commitment to sustainability,” PSE President and Chief Executive Officer (CEO) Ramon S. Monzon said in a statement.
PSE said CDP can be a useful tool for listed companies to identify how they can improve their systems, policies, and governance practices to become more sustainable.
CDP’s disclosure platform integrates best-practice reporting standards and frameworks in one place, with International Financial Reporting Standard (IFRS) S2 on Climate-related Disclosures serving as its foundational baseline. As such, companies can use CDP to identify and report climate-related financial risks and opportunities.
The disclosure platform also fully incorporates the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), with substantial or partial alignment with the European Sustainability Reporting Standards (ESRS) and the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD).
The questionnaire covers climate change, water security, forests, plastics, and ocean impacts. - James A. Loyola