The Carbon Disclosure Project (CDP) is a globally recognized platform that enables companies to measure, disclose, manage, and share environmental information. Focused on three thematic areas – Climate Change, Water Security, and Forests, CDP provides a standardized framework for companies to report their environmental impacts and assess associated risks and opportunities . With thousands of participating organizations worldwide, CDP disclosures offer transparency and accountability, helping businesses align with global sustainability expectations. CDP is particularly relevant today as investors, customers, and regulatory bodies increasingly demand climate-related transparency.
A strong CDP score enhances a company’s reputation, demonstrates its commitment to environmental stewardship, and opens doors to green investment opportunities. Moreover, the data-driven insights from CDP reporting help organizations identify areas for improvement, optimize resource use, and build resilience against environmental risks. Participating in CDP allows companies to stay competitive while contributing to global sustainability efforts.
CDP’s Corporate Question bank aligns with the world’s most relevant frameworks and standards, and it also supports disclosures in line with:
Platform opens for Authorities requesting disclosure
Questionnaire made available
Corporate Disclosures begin (Submission window opens)
Scoring Deadline for Corporates (Submission window closes)
Once companies have decided to participate in CDP, they must familiarize themselves with the steps involved and the questionnaire applicable to them. Using specialist consultants and digital tools can help streamline this process. A successful CDP disclosure involves the following steps:
Sign up on the CDP Platform to receive the appropriate questionnaire based on the company’s sector and environmental focus. Familiarize with CDP guidelines, scoring methodologies, and deadlines. Review past performance.
Collect data on GHG emissions, energy use, water management, deforestation practices, and climate risks. Ensure the accuracy and completeness of the data.
Complete the relevant CDP Questionnaire, addressing each section. Prepare necessary documentation to support your answers.
Conduct a thorough review of the completed questionnaire and submit it to CDP by the specified deadline. Choose to conduct a third-party verification of the Data.
CDP will score your submission and provide feedback, indicating your performance in areas such as governance, risk, management, and disclosure quality.
To maintain good CDP Reporting Standards, Companies need to adopt a Methodology as follows:
Each organization will have to take a slightly different approach to their CDP Reporting process as data management varies across companies and there is no defined set of procedures to follow.
For First-Time Reporters: Get familiar with the CDP questionnaire, especially the Climate Change section. Prioritize disclosing Governance, Risks & Opportunities, and your Scope 1 & 2 emissions (leveraging your GHG accounting). First time reports should also attempt to answer qualitative questions even with initial detail. Companies can engage key internal stakeholders early to gather information and build awareness.
For Seasoned Reporters: Seasoned reporters can look at enhancing their scores through initiatives such as expanding and refining the Scope 3 reporting, seeking third-party assurance for emissions data. Seasoned reporters can also demonstrate climate action through developing and tracking robust emission reduction targets and conducting climate-related scenario analysis (integrating TCFD). Establishing board-level oversight on ESG, and developing sustainable supply chains are also other initiatives through which seasoned reporters demonstrate leadership.
Companies can overall work on investing in systems that improve data management for year-round data collection and verification.
Sustainext provides specialized support in CDP Reporting. Our team of professionals can support you throughout the entire process from a readiness assessment and gap analysis to a ratings improvement plan. The team can also advise on related areas such as GHG Accounting, Net Zero and climate risk assessments that can enhance your CDP disclosure.
As a Global Service Provider, we work with Clients from various sectors using a combination of consulting and technology, we can provide clients with a Managed Service that is cost effective, improves efficiencies and accuracies, and reduces turnaround times leading to greater client satisfaction.
