CDP stands for Carbon Disclosure Project, a global non-profit that provides a platform for companies, cities, and governments to disclose environmental data. It aims to help the world transition toward a low-carbon and sustainable future by promoting transparency on climate change, water security, and deforestation.

Environmental disclosure has shifted from being optional to essential. With climate risks rising and regulations tightening globally, CDP offers a recognized framework that helps organizations stay ahead of policy, investor, and market expectations. It is now a key pillar of ESG and sustainability leadership.

In 2023, over 23,000 companies, representing two-thirds of global market capitalization, disclosed environmental data via CDP. In Greater China alone, over 3,400 companies participated—an increase of 26% from the previous year—showing rapid adoption across Asia.

Climate Change
Water Security
Forests
Each includes core elements like governance, strategy, risk management, metrics, and targets. Companies can choose between a full version and a minimum version. The latter is for small companies or first-time responders with revenue under €250 million.

Several major changes include:
A single, integrated corporate questionnaire combining climate, forest, and water
Inclusion of plastic and biodiversity questions (not scored in 2024)
Introduction of a tailored SME version
Alignment with IFRS S2, ESRS, and TNFD reporting standards
Embedded supply chain questions instead of separate modules

CDP scores disclosures annually using a transparent framework, rating companies from D (Disclosure) to A (Leadership). The four levels are:
D/D- (Disclosure only)
C/C- (Awareness)
B/B- (Management)
A/A- (Leadership)
Scores reflect both completeness and quality. Only certain disclosures—especially full versions or supplier-related minimum versions—receive ratings.

Regulatory alignment: Stay ahead of emerging ESG disclosure laws
Reputation: Enhance brand image and investor confidence
Procurement inclusion: 95% of buyers use CDP data in supply chain decisions
Operational insight: Improve carbon accounting and data-driven decision-making
Competitive edge: 76% of firms say CDP improved their market position

By systematically reporting on climate, forest, and water risks, CDP helps businesses identify physical, transitional, and reputational threats. It also helps discover new opportunities, such as clean technologies, circular products, or green financing incentives.

CDP is open to all, but especially valuable for:
High-impact sectors (energy, manufacturing, food, retail)
Companies with global operations or suppliers
Firms under investor or regulatory pressure
Businesses aiming for ESG leadership or public listings

Begin by:
Registering on CDP’s platform
Reviewing the latest questionnaire and scoring guides
Assigning a cross-functional ESG task force
Collecting reliable environmental data
Submitting responses typically between May and July