CDP (Carbon Disclosure Project)

CDP operates the global disclosure system that enables companies, cities, states, and regions to measure and manage their environmental impacts across climate change, water security, and forests, providing the world's largest and most comprehensive dataset on corporate environmental performance.

Founded in 2000, CDP has grown from a single questionnaire sent to the world's largest companies to a comprehensive disclosure platform used by over 23,000 companies, representing more than two-thirds of global market capitalisation. CDP acts on behalf of over 740 institutional investors with assets exceeding US$136 trillion, making it one of the most influential mechanisms for driving corporate environmental transparency.

CDP Questionnaires

CDP operates three main questionnaires:

Climate Change — Covers governance, risks and opportunities, business strategy, targets and performance, emissions methodology, emissions data (Scope 1, 2, 3), energy, additional metrics, verification, and carbon pricing. The climate questionnaire is aligned with TCFD recommendations and ISSB standards.

Water Security — Covers current state, business strategy, risk assessment, water accounting, water-related targets, governance, and verification. Particularly relevant for water-intensive sectors including agriculture, mining, textiles, and food and beverage.

Forests — Covers forest-related risks and opportunities for key commodity supply chains (timber, palm oil, cattle, soy, rubber, cocoa, coffee). Aligned with the Accountability Framework initiative and the Kunming-Montreal Global Biodiversity Framework.

Scoring Methodology

CDP scores companies on a scale from D- (disclosure) to A (leadership), based on the completeness of disclosure, awareness of environmental issues, management of environmental risks, and leadership in best practices. Companies that fail to respond or provide insufficient information receive an F. The scoring methodology is updated annually and aligned with evolving best practices and regulatory requirements.

In 2024, CDP announced alignment with ISSB standards, meaning that from 2025, CDP questionnaires will incorporate IFRS S2 requirements, creating a single entry point for climate disclosure that satisfies both CDP and ISSB requirements.

CDP and ESG Reporting

CDP data is widely used by ESG rating agencies, investors, and benchmarking initiatives. CDP scores are incorporated into major ESG ratings (MSCI, Sustainalytics, S&P Global). The Science Based Targets initiative (SBTi) uses CDP as its primary disclosure platform. CDP's supply chain programme enables companies to request environmental data from their suppliers, extending transparency beyond direct operations.

Further Reading

• CDP — Official CDP platform
• SBTi — Science-based targets
• GHG Protocol — Emissions measurement

Related Topics

• TCFD — Climate disclosure framework
• IFRS S2 — ISSB climate standard
• TNFD — Nature-related disclosures