While artificial intelligence and geopolitics dominated headlines at this year's World Economic Forum Annual Meeting, the prominence of sustainability topics appeared to diminish. However, Shannon Joly, Chief Marketing Officer of the global environmental disclosure platform CDP, suggested in a conversation that this might indicate sustainability is no longer just a slogan but is being integrated into corporate financial performance and long-term resilience strategies. During a pivotal year marked by global moves towards mandatory climate disclosure and the implementation of China's own disclosure standards, Joly shared how CDP is assisting global businesses, including Chinese companies, in building a "new normal" that benefits the planet.

Is the Sustainability Agenda Cooling Down? Reviewing the meeting's agenda, while topics directly related to sustainability seemed less prominent, Joly cautioned against concluding that action has stalled simply because sustainability was discussed or showcased less at the Forum. She emphasized that concrete actions are accelerating behind the scenes. "We might be using the term 'sustainability' less directly, but we are actually talking about it more from the perspectives of financial performance and resilience. Ultimately, it's the same thing, just framed differently," she stated. She views this as a sign that sustainability is deeply integrating into core business logic. "Considering risk exposure and how companies maintain long-term sustainability and resilience is bringing environmental issues directly into boardroom discussions." Citing data, she noted that the number of global companies disclosing through CDP remains stable, and more businesses are capitalizing on the economic opportunities associated with sustainability.

Building a Data-Driven Sustainable "Ecosystem" Amid challenges posed by geopolitical uncertainty, Joly stressed that business leaders need to focus more on operational resilience. She pointed out that the primary challenge today is not a lack of solutions but effectively utilizing existing systems. She explained that CDP's global environmental disclosure system provides a "unified, coordinated, and scientifically-based metrics" platform. Demand from the financial sector is a key driver: "Both investors and insurers are demanding this information to facilitate long-term financing and underwriting decisions." "One of the top reasons we see companies disclosing through CDP is because their customers are asking them to," Joly said. "Even smaller companies often provide environmental data and follow guidelines due to client requirements." She highlighted that the value of disclosure extends further: "Once suppliers provide data, it is used to support clients' sustainable supply chain management and procurement decisions. Furthermore, strong environmental performance can help companies secure favorable interest rates, aid financing, and attract investor interest." Technology is crucial for reducing the burden and enhancing reliability: "Technological advances can help streamline processes and lessen the load. CDP itself is exploring partnerships to make the disclosure process more insight-driven rather than data-entry driven, thereby helping even the smallest companies reduce their burden more quickly."

Rising Disclosure Rates and Economic Benefits for Chinese Companies Joly specifically acknowledged the progress made by Chinese companies in data disclosure: "We are seeing substantial growth in the number of companies disclosing through CDP across various industries and sectors in China. Notably, 74% of Chinese companies that disclosed received a CDP management or leadership score, which are the platform's two highest rating levels." She views this not merely as environmental action but also as a result of rational consideration of economic benefits: "Companies leading in environmental performance have realized $218 billion in economic opportunities. Chinese companies alone captured $27 billion in economic opportunities last year." With the introduction of climate disclosure standards by China's Ministry of Finance and the promotion of International Sustainability Standards Board (ISSB) standards, the synergistic value of the CDP platform is highlighted, especially as CDP has aligned its framework with international standards like the ISSB climate standard for 2024. Joly stated, "We were the first organization to fully align our climate disclosure metrics and questionnaire with IFRS S2. CDP's alignment with partners allows companies to use our disclosure system to achieve multiple objectives, including compliance." She revealed that CDP plans to release a specialized analysis report on the current state of climate disclosure among Chinese companies later this year and will actively communicate and explore collaborations with standard-setting bodies to better assist Chinese companies, particularly those operating internationally, in meeting relevant policy and regulatory disclosure requirements.

This year marks CDP's 25th anniversary. Reflecting on its journey, Joly stated that CDP "pioneered the field of 'environmental disclosure'." Looking ahead, she believes disclosure has become standard practice, and the trend towards mandatory reporting signifies that "environmental metrics are becoming a routine part of business practice and future economic success." For the next 25 years, technological investment is core. "CDP needs to invest in innovation and technology so that environmental data can drive decisions beneficial to the planet within business and capital allocation processes," Joly said. She expressed hope that "in 25 years, we might be able to operate an economy that is beneficial to the planet, where environmental metrics are simply a natural part of how we work."