Sherry Madera, in Baku for COP29, says more companies are reporting on climate than ever, despite a pushback against ESG.
4 min
BAKU, Azerbaijan—With more than 23,000 companies representing some $6.4 trillion of purchasing power reporting their emissions through CDP, the not-for-profit charity formerly known as the Carbon Disclosure Project is one of the leading names within the corporate sustainability space.
The U.K.-based nonprofit, which has been operating since 2000, was set up to encourage companies to disclose their environmental impact, including their carbon footprint, water usage and effects on forests and nature.
But amid a recent backlash against environmental, social and corporate governance initiatives, and as clean-energy stocks have slumped this year, concerns are growing over how important climate and sustainability reporting has become to companies. Greenhushing, the idea of companies pursuing climate plans without announcing them, has become a common practice, mainly because they fear being called out for greenwashing.
But, according to CDP Chief Executive Sherry Madera, these doubts should be put aside. A growing requirement for mandatory reporting, improved data and companies’ willingness to engage with supply chains are all signs that corporate engagement with climate and sustainability is still top of mind.
WSJ Pro Sustainable Business spoke to Madera at COP29 in Baku to discuss corporate engagement with climate and the push for company disclosures. The conversation has been edited for clarity and length.
WSJ: How will the Trump victory affect company policy around disclosures?
Madera: Climate change doesn’t start and stop with elections—and neither does climate action. Leading companies aren’t waiting to be told what to do; they’re already disclosing climate data because they know transparency equals opportunity. With 86% of the S&P 500 now voluntarily disclosing, it’s clear: U.S. companies aspiring to be global leaders understand that climate action is no longer optional—it’s a necessity. Regardless of shifting political landscapes, the competitive advantage is undeniable: those who act now will secure access to capital, reduce risks and lead in efficiency. The future isn’t just about compliance; it’s about staying ahead in a global economy where sustainability defines success. Any administration that cares about the economy has to care about data, science and climate.
WSJ: How can you encourage the private sector to disclose more climate and supply-chain data?
Madera: CDP is 24 years old. So the idea of surfacing information for investors, customers, economists and government regulators to take action on climate is not new for us. But it’s really come into its own in the last few years when disclosures became mandatory in many places around the world or have been signposted to be mandatory in the next few years.
I think that there’s a real shift in thinking about just setting targets versus now implementation. If we find ways of making sure that the money flows to more sustainable investment options, I think that really underpins what we as economies are trying to do.
There’s a lot of talk about the pushback, but the data doesn’t show that for us. So year-on-year we’re growing at about 24% voluntary disclosures from companies worldwide and that includes countries that don’t have a mandatory disclosure plan in place, i.e. the U.S.
Businesses are willing [to disclose] not because they necessarily have the primary directive of saving the planet but they’re willing to share information and to disclose data because it’s a business necessity now.
WSJ: How do you see corporate disclosures evolving over the next few years?
Madera: I see more mandatory disclosure is coming into place around the world and I think that’s a great thing. CDP has been encouraging this for decades so that’s great with the qualifier that says actually harmonising what is being asked for from a mandatory perspective is advantageous.
The reality is if you look at principles, frameworks, standards and data, the data is quite consistent and it’s just about making sure you’re mapping it and tagging that data so it doesn’t need to be written multiple times. And that efficiency I think is going to be really important because essentially every dollar you spend on reporting is a dollar you can’t spend on action and that doesn’t seem right.
WSJ: Do you see the role of the chief sustainability officer evolving and becoming more aligned with the chief financial officer? Would that be a good thing?
Madera : I think it’s a good thing. The CFO needs to be convinced that there is value in investing in servicing this information, in disclosing and being transparent. So being closely linked to other elements of the business, particularly the CFO who really has a say on the money that’s being spent.
CDP works with over 300 of the world’s largest supply chain owners and they’re very keen on looking at their scope 3. Not because they just want to report on it, but because they want to actually dig into the data so that they can work with their supply chain to find out ways that they can lower their emissions.
A great example of this is Walmart. So the Walmart gigaton project is something that CDP was closely involved in setting up and they came in and then the project was to lower emissions by a gigaton in about 15 years and they came in and achieved that six years early and they did that because they looked at the data from their supply chain and they actively engaged with those members and supply chain in order to be able to help them change their energy mix, helping them to find renewables as an alternative.
WSJ: With fewer companies expected to attend COP this year, how will you encourage more of them to disclose?
Madera: I have the luxury of speaking to many international corporations as well as private companies and the main thing they say to me is they want clear policy because that allows them to have very clear steer on how it is that they can build their business to be a sustainable business.
What I would hope we can see more of particularly starting now and going all the way through to COP30 in Brazil, is that deeper engagement of companies that are working within these jurisdictions to be able to know really clearly what it is that they are going to be asked to contribute to those national goals and be an important part of them.
WSJ: Do governments influence company climate policy?
Madera: In 2024, I think over 70% of the world’s population has gone, or will go to the polls and obviously climate isn’t the only issue, but it is one of the issues in various places around the world.
Businesses do want clear signposting in terms of policies and in terms of government support or encouragement. More companies are continuing to disclose to ensure that they’re competitive.
But they’re also tending to be quieter about it than they were a couple of years ago. Before they were proudly screaming from the rooftops that they were transparent, and they were setting targets and they were making progress and these are their transition plans. What we’re finding is that they’re disclosing the data, but they’re doing so with less fanfare and less engagement with us to try and promote themselves.
So they’re keeping their heads below the parapets, it doesn’t mean that the data is not there and it’s not moving.
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Strong family financial planning can help reduce taxes and support younger generations. From intrafamily loans and asset gifts to inheritance disclaimers, strategic cooperation can create meaningful financial benefits—when families have the trust and structure to make it work.
4 min
Happy is the family whose members—parents, grandparents and grown children—trust each other enough to cooperate on shared goals, especially financial ones. When that is truly the case, Uncle Sam’s tax rules can help as well.
This matters especially now that mortgage rates are above 7%, and many families are looking for ways to help younger members. If the elders have resources and are confident younger ones can cooperate, a family loan could make homeownership possible while providing the elders with a useful income stream.
Other strategies can actually lower taxes, such as when funding 529 plans or Roth IRAs, or when someone inherits a traditional IRA with required withdrawals larger than they will need.
Here are three strategies useful for functional families.
It is perfectly legal for families to lend money to a relative for a down payment or even a private mortgage.
But it is important not to cut corners, says Ryan McKeown, a CPA with Modern Wealth Enhancement in Minnesota. If the loan is for a down payment, be honest with the mortgage provider and have a formal agreement. The lender owes tax on the interest payments received.
If the loan is for a private mortgage, both sides should have legal representation with a formal written agreement, including payment terms. The lender owes tax on the interest, and the borrower often can deduct it if he or she itemizes.
To avoid IRS trouble, the interest rate shouldn’t be lower than the agency’s Applicable Federal Rate at the time of the loan. Currently that is about 5% for loans longer than nine years; about 4.5% for loans three to nine years; and about 4% for loans three years or less. Currently, traditional mortgage rates are generally above 7%.
In addition, the lender could use the $19,000 annual gift-tax exemption (described below) to forgive some or all of the interest or principal annually. If both lenders and borrowers are married, that is up to $76,000 a year. There is no tax for the borrower on such forgiveness, because it is from a gift.
If you’re going this route, McKeown advises against having a fixed plan to forgive the debt. Instead, do it in one-off letters specifying the amount—and keep careful records. Otherwise the IRS might try to treat the loan as a taxable gift.
Powerful tax-saving moves for families often use gift-tax provisions. Under current law, anyone can give anyone else up to $19,000 of assets annually, free of gift tax. That means a married couple with three grandchildren could give them a total of $114,000 in 2026.
The gifts can be cash or other assets, like stock. For noncash gifts, the cost basis—which is the starting point for measuring taxable gain after a sale—“carries over” to the recipient. So if someone buys $1,000 of stock and gives it away when it is worth $5,000, the recipient’s cost basis is $1,000. If the recipient later sells the shares for $8,000, the taxable gain is $7,000.
Here’s an example showing how gifts could save a family taxes. Grandma is a widow of modest means, while her child and spouse have prospered. The couple has two children, and they want to contribute $5,000 to a 529 college-savings plan for each—but they need to sell stock to do it. Their tax rate on the sale would be 18.8%, and they would need to sell about $11,000 of stock.
However, Grandma’s federal tax rate on the stock sale is 0%. If the couple gives $10,000 of shares to Grandma, she could sell them, pay no tax, and fund the grandchildren’s 529 plans. This saves about $1,000 of tax.
These moves are legal, and they could be used in other ways, such as to help a young person fund a Roth IRA.
But trust among family members is essential: Under the law, givers can’t put conditions on a gift. Grandma could use her stock proceeds to take a cruise, but she makes 529 contributions instead.
Mark Sellner, a retired tax attorney and CPA living in Sarasota, Fla., uses this strategy. His children sell stock he gives them and fund 529 plans for his grandchildren.
The family’s tax savings aren’t huge, but he likes other benefits. The sales by his children don’t boost his adjusted gross income, which in turn could raise his Medicare Irmaa premiums or his 3.8% surtax on net investment income.
Sellner doesn’t worry about his children using the funds for another purpose.
“There can’t be any strings attached to gifts. Of course, it is up to us to decide whether to make them in the future,” he says.
Two caveats: The “kiddie tax” applies to most children under age 24, and it is levied at the parents’ rate on investment income above $2,700 in 2026. Consider this before making gifts to a young person.
Investors who give away stock also forgo the step-up, an important provision that exempts assets held at death from capital-gains tax.
Sellner knows he’s losing a step-up, but says, “The children could use a little more now. Why should they wait 20 years to get it?”
A disclaimer is a highly useful strategy in which one heir renounces an inheritance in favor of another heir. Assuming family members cooperate, this can save taxes.
Here’s one example. Dad died and had a large traditional IRA that he left to Mom. She has enough assets and income to cover her expenses, and she lives in a state with a stiff estate tax. The inherited IRA would put her estate over the threshold.
Also surviving are three young-adult children. If Mom disclaims all or part of Dad’s IRA within nine months of his death, that amount could go directly to the children. They will have 10 years to empty the account, and the family as a whole will likely save estate and income taxes.
Disclaimers have many key details, especially regarding beneficiary documents. Although heirs have great freedom in choosing what assets to disclaim, the rules about who gets disclaimed property are rigid. It is best if the original owner names tiers of heirs so that if one disclaims, the next recipient is clear.
