What is CDP Reporting?

CDP (formerly Carbon Disclosure Project) is one of the most recognized and commended reporting frameworks in the ESG and sustainability universe, focusing on key areas such as greenhouse gas emissions, water usage, deforestation, and plastics.

CDP is a not-for-profit charity focused on encouraging environmental reporting to curb the catastrophic effects of climate change. Companies will submit environmental impact data each year for the year prior and receive a score from CDP. 

Why is CDP Reporting Important?

• Investor Demand: Over 700 financial institutions representing US$142+ trillion in assets are requesting 33,000+ companies to disclose to them through CDP in 2024. In 2023, over 23,000 companies disclosed through CDP representing about two-thirds of the global market cap.  

• Customer Demand: Through the CDP Supply Chain membership, more than 330 organizations with more than US$6.4 trillion in procurement spending requested thousands of suppliers to disclose through CDP in 2023. 

• Environmental Risk Management: The practice of evaluating climate and environment-related impacts through the CDP framework helps organizations identify risks and opportunities that may have otherwise gone unnoticed. Seven out of 10 companies agreed that disclosure through CDP helped them learn more about their environmental impact and impact management in a 2023 survey. 

• Support Regulatory Compliance: CDP reporting aligns with major standards and frameworks including the IFRS S2, ESRS, and TCFD, which are the basis for many major regulations across the world. This alignment helps reduce duplicate work when looking to comply with multiple regulatory disclosure requirements. 

• Reputation and Transparency: Demonstrating a commitment to sustainability through CDP reporting can enhance a company’s reputation and build trust with stakeholders. 

Key Components of CDP Reporting

• Climate Change: Organizations report on their greenhouse gas emissions, climate-related risks, and opportunities. This includes both direct emissions (Scope 1) and indirect emissions (Scope 2 and 3). 

• Water Security: This component assesses how companies manage water resources, including usage, risks, and conservation efforts. 

• Forests: Organizations disclose their impact on deforestation and forest management practices, aiming to reduce deforestation and promote sustainable land use. 

• Plastics: Information related to the production and use of plastic polymers, durable plastics, and plastic packaging is a recent addition to the CDP questionnaire. 

• Biodiversity: There is an inherent link between climate and nature-related changes with biodiversity, and CDP acknowledges this by including questions related to biodiversity impact.

Additional Information on CDP Reporting 

• CDP Scoring: Most disclosing organizations and cities report to CDP with the intent on receiving a rating. CDP scores range from A to F that are based on disclosure completeness and impact management. An ‘A’ score reflects an entity that demonstrates environmental leadership with environmental considerations integrated into its strategy and policy. 

• Reporting Period: CDP typically releases the annual questionnaire to respondents in March or April of a given year with the submission period running from June to September or October. In 2024, the CDP submission deadline is October 2 to be considered for scoring, and the reporting window closes on October 16. 

• Partner with a CDP Accredited Software Provider: Gathering and synthesizing data from across your organization and external partners into a consolidated and formatted report is often arduous and time consuming. Partnering with a CDP accredited software provider like IsoMetrix improves reporting efficiency, accuracy, and consistency when aligning to additional reporting frameworks like ISSB, TCFD, and ESRS.  

• Register and Prepare: Sign up on the CDP portal and review the available questionnaires and guidance documents.  

Find out how IsoMetrix can help you streamline CDP disclosures and support additional reporting standards and frameworks.