Yesterday, Responsible Investor reported that the Carbon Disclosure Project (CDP) is merging with the Forest Footprint Disclosure Project (FFD) in the hopes of creating a more comprehensive disclosure system for natural resources. This merge should happen over the next 2 years, however it is unusual in the not-for-profit sector. The FFD, which was launched in 2009, is a disclosure system for deforestation. In 2011 the group sent out requests to 360 large companies worldwide on behalf of 74 financial institutions.

CDP Chief Executive Paul Simpson said: “Bringing forests, which are critically linked to both climate and water security, into the CDP system will enable companies and investors to rely on one source of primary data for this set of interrelated issues.”

This merger announcement comes just before the Rio+20 summit in Brazil, which is expected to see a series of announcements. The merge has already begun a transition process, and the CDP will begin managing the FFD’s operations from February 2013.

Here at BrownFlynn we agree the merge is a good idea. It will help to streamline voluntary disclosure efforts for both the CDP and responding companies. Further, this merge is evidence that voluntary corporate disclosure and accounting for ecosystems is growing in significance.

What are your thoughts on this merge? Do you think it’s a good idea? Does it make sense? Let us know!