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.
Copyright 2020, Dow Jones & Company, Inc. All Rights Reserved Worldwide. LEARN MORE
The Australian leather house has opened an immersive four-day pop-up in Manhattan, unveiling its Bloom Collection and redefining what a product launch can look like.
Following the successful launch of its Palais Collection, MAISON de SABRÉ has unveiled a new modular handbag system offering more than 720 styling combinations.
Investors are bracing for a bumpier fall stock market due to shifting odds of a Federal Reserve interest-rate increase and other macro challenges.
3 min
The stock market had a decent summer. Investors are bracing for a bumpier fall.
In the past couple of months, equity investors cheered soaring profits at big companies, shrugged off jitters in the bond market and nudged megacap tech shares back near records.
Now, as the post-Labor Day stretch begins, a number of new challenges lie ahead: ever-shifting odds of an interest-rate increase from the Federal Reserve. Sky-high expectations after a stunning earnings season. The persistent threat of higher consumer prices as fighting in the Middle East drags on.
“You’re moving from this earnings-driven market to this macro-driven market with the Fed, inflation and interest rates in focus,” said Keith Lerner, chief investment adviser for Truist Advisory Services. “It tends to be a choppier period.”
Historically, every major U.S. stock index experiences its worst average return in September. The Dow Jones Industrial Average has slid an average 1.1% in the ninth month of the year, in data that dates back to the 19th century. The S&P 500 has seen the same average decline—and for every September dating back to 1928, the benchmark ends the month lower more than half of the time.
Analysts caution against reading too much into those seasonal patterns. But in recent weeks, new reasons for investor caution have emerged. One of the largest: the looming threat of an interest-rate increase from the Fed, which announces its next policy decision on Sept. 16.
Chairman Kevin Warsh’s decision to ditch forward guidance and take more of his cues from markets has muddied the waters for investors when it comes to monetary policy. That has left traders scouring Fed governor speeches and economic-data reports for clues on the central bank’s next move.
“There’s going to be a lot of eyes on those numbers,” said John Luke Tyner, head of fixed income and portfolio manager at Aptus Capital Advisors.
The past couple of weeks offered just one example of how frequently those expectations can change. After Warsh struck a hawkish tone during remarks on Aug. 28, the odds of a hike at the Fed’s next meeting jumped from 35% before the speech to 58%, according to CME FedWatch data.
On Thursday, Fed governor Christopher Waller made a case for leaving rates where they are. Interest-rate futures showed coin-flip odds between a hike and a hold. Then Friday’s robust jobs report amped up rate-hike bets once more, back to a roughly 60% chance of higher rates after the meeting.
“Rates have really been driving the car for equities the last few weeks,” said Ross Mayfield, an investment strategist at Baird.
That uncertainty comes as an unruly bond market could put pressure on stocks. Treasury yields have marched higher for much of the summer, driven by concerns about rising oil prices, growing U.S. budget deficits and a deluge of tech-company bonds now competing for investors’ cash. Last week, the rout went global, pushing yields to multiyear highs in Japan, Germany and the U.K.
Higher bond yields can drag on stock prices and lift borrowing costs for companies and consumers across the economy.
Rising prices remain the top concern for bond traders, and continued fighting between the U.S. and Iran has done little to ease those worries. The national average price of diesel climbed to a record of $5.850 on Friday, according to AAA. That is up from $3.712 a year ago.
Investors will get more insight on the path of prices this week, with the much-awaited consumer-price index report due Friday and a reading on producer prices Thursday.
With another blockbuster earnings season in the books, some analysts have also warned that any boost from the third-quarter reports due in the coming months could be minimal. Back-to-back quarters of standout profits have raised expectations and made it especially difficult to impress traders. Custom-chip company Broadcom, for example, said Wednesday that it more than tripled its earnings and nearly doubled its revenue. Shares slipped 2.7% the next session.
Many analysts note there are plenty of reasons not to panic. The economy is in impressive shape, thanks to a healthy labor market and the rippling effects of the artificial-intelligence investment boom. Profits are booming at America’s biggest companies. The Cboe Volatility Index has dropped to its lowest levels of 2026. Credit spreads are tight, a sign bond investors aren’t concerned about economic conditions that could hurt companies.
But the mood has shifted from the euphoria that felt tangible when the Nasdaq was notching back-to-back records early this summer. The question, Mayfield said, is whether the fundamentals that have bolstered the bull market so far can stretch the rally into 2027.
“There are more anxieties or uncertainties about the backdrop,” he said. “It does feel like a transitional moment.”
