CDP

CDP (formerly Carbon Disclosure Project) operates the world's leading environmental disclosure platform, enabling companies, cities, states, and regions to measure and manage their environmental impacts. Over 23,000 organizations disclosed through CDP in 2024, representing over two-thirds of global market capitalization.

Framework Overview

CDP administers three main disclosure questionnaires covering climate, water security, and forests. Each questionnaire uses a structured scoring methodology to assess environmental performance and transparency.

Three Disclosure Areas

Climate Change — GHG emissions, climate risks, and decarbonization strategies

• Scope 1, 2, and 3 emissions reporting
• Climate-related risks and opportunities (TCFD-aligned)
• Emissions reduction targets and progress
• Climate governance and strategy

Water Security — Water management and water-related risks

• Water withdrawal, discharge, and consumption
• Water stress assessment by facility
• Water-related risks and opportunities
• Water stewardship initiatives

Forests — Deforestation-free supply chains

• Commodity exposure (timber, palm oil, cattle products, soy, rubber)
• Deforestation risks in supply chain
• Sustainable sourcing commitments
• Traceability and certification

Scoring Methodology

CDP uses an 8-level scoring system from D- to A:

Score	Level	Description
A	Leadership	Implementing current best practices
A-	Leadership	Strong performance with minor gaps
B	Management	Taking coordinated action on environmental issues
B-	Management	Coordinated action with some gaps
C	Awareness	Knowledge of environmental impacts
C-	Awareness	Awareness with limited action
D	Disclosure	Disclosing environmental data
D-	Disclosure	Minimal disclosure
F	Failure	Failed to provide sufficient information

Scoring assesses four progressive levels:

1. Disclosure — Measuring environmental impact
2. Awareness — Understanding environmental issues
3. Management — Implementing actions to address impacts
4. Leadership — Best practices and industry leadership

Why CDP Matters

Investor Demand

CDP disclosure is requested by 740+ institutional investors with over $136 trillion in assets. Many investors use CDP scores as a key ESG performance indicator when making investment decisions.

Supply Chain Pressure

Over 280 major purchasing organizations with $6.4 trillion in procurement spend request their suppliers to disclose through CDP's supply chain program. This creates cascading disclosure requirements throughout value chains.

Regulatory Alignment

CDP questionnaires are aligned with major reporting frameworks:

• TCFD — Climate questionnaire incorporates all 11 TCFD recommendations
• IFRS S2 — CDP climate data can support IFRS S2 disclosures
• ESRS E1 — CDP climate data supports ESRS E1 compliance
• GRI — CDP indicators map to GRI 305 (Emissions) and other standards

Public Disclosure

CDP responses are made publicly available (unless marked confidential), creating transparency and enabling stakeholder scrutiny of environmental performance.

Primary Source Documents

From ESG Library

• ESG Reporting Made Simple (IFRS/SASB) — Includes CDP-IFRS S2 alignment guidance
• Climate Change Reporting Made Simple — CDP climate questionnaire implementation

View all books →

How to Disclose Through CDP

Step 1: Register
Create an account at cdp.net and register your organization. Disclosure is free for companies.

Step 2: Select Questionnaires
Choose which questionnaires to complete: Climate Change (most common), Water Security, and/or Forests.

Step 3: Gather Data
Collect required data:

• Climate: Scope 1/2/3 emissions, energy consumption, climate risks, targets
• Water: Withdrawal/discharge/consumption by facility, water stress assessment
• Forests: Commodity exposure, deforestation risks, sourcing policies

Step 4: Complete Questionnaire
Answer questions through the CDP online response system (ORS). Questionnaires typically have 50-100 questions depending on disclosure level.

Step 5: Submit
Deadlines are typically July-August for annual disclosure cycle. Late submissions receive lower scores.

Step 6: Receive Score
CDP scores are released in December-January. Scores and responses are published on CDP website (unless marked confidential).

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CDP Climate Questionnaire Structure

The climate questionnaire has 12 modules:

C0: Introduction — Company details, reporting year, verification
C1: Governance — Board oversight, management responsibility
C2: Risks & Opportunities — Climate-related risks and opportunities identified
C3: Business Strategy — Integration of climate into business strategy
C4: Targets & Performance — Emissions reduction targets and progress
C5: Emissions Methodology — Calculation methodologies and standards used
C6: Emissions Data — Scope 1, 2, 3 emissions by source
C7: Emissions Breakdown — Breakdown by business division, facility, activity
C8: Energy — Energy consumption and renewable energy use
C9: Additional Metrics — Other climate-related metrics
C10: Verification — Third-party verification of emissions data
C11: Carbon Pricing — Internal carbon pricing mechanisms
C12: Engagement — Engagement with value chain on climate issues

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Achieving an A Score

To achieve A (Leadership) on CDP Climate, companies must:

Comprehensive Disclosure
Answer all relevant questions with complete, high-quality data.

Scope 3 Emissions
Report Scope 3 emissions across all 15 categories (or explain why categories are not relevant).

Science-Based Targets
Set emissions reduction targets validated by Science Based Targets initiative (SBTi), including Scope 3.

Climate Risks
Conduct climate scenario analysis (including 2°C or lower scenario), identify material climate risks and opportunities, integrate into business strategy.

Low-Carbon Products
Generate revenue from low-carbon products/services or invest in R&D for climate solutions.

Verification
Obtain third-party verification for Scope 1 and 2 emissions (minimum limited assurance).

Value Chain Engagement
Engage suppliers on climate issues, set supplier emissions reduction targets, provide incentives for supplier climate action.

Climate Governance
Board-level oversight of climate issues, executive compensation linked to climate targets.

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CDP Supply Chain Program

Over 280 major corporations request their suppliers to disclose through CDP's supply chain program:

Requesting Companies Include:
Apple, Microsoft, Walmart, Unilever, Nestlé, LVMH, Toyota, BMW, Johnson & Johnson, Procter & Gamble

Supplier Benefits:

• Demonstrate climate leadership to customers
• Identify emissions reduction opportunities
• Benchmark against peers
• Meet customer sustainability requirements
• Reduce climate-related business risks

Supplier Disclosure:
Suppliers complete the same CDP climate questionnaire but at no cost when invited by a customer.

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CDP Scores by Industry (2024)

Industries with Highest A-List Representation:

• Materials: 12% of disclosing companies achieved A
• Industrials: 10% achieved A
• Consumer Discretionary: 9% achieved A
• Information Technology: 8% achieved A

Average Scores by Region:

• Europe: B (highest average score globally)
• North America: B-
• Asia-Pacific: C+
• Latin America: C

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Related Topics

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