Carbon Disclosure Project (CDP)

What is CDP?

CDP reporting is an international disclosure system for environmental and climate data used by companies, investors, and governments alike. Originally founded as the Carbon Disclosure Project in 2000, the organization has evolved into a global standard for sustainability reporting. The goal is to provide reliable and comparable information about companies’ environmental footprints, thereby bringing transparency to the financial and real economy sectors.

The figures underscore the significance: In 2023 alone, more than 23,000 companies worldwide —including numerous market leaders—submitted information about their emissions, strategies, and actions to CDP. The trend is on the rise, as investors and stakeholders are increasingly submitting targeted disclosure requests through CDP. Companies can respond by completing standardized online questionnaires on climate change, forests, water, and, increasingly, plastics. CDP evaluates the completed questionnaires and assigns a score (A–D or F for “Failure to disclose”).

It’s important to note that participation isn’t limited to requests—companies can also voluntarily publish their data to signal to investors, customers, and partners that they actively prioritize sustainability.

The trend is clearly moving toward mandatory disclosure: Between 2021 and 2022, the number of climate-related requests submitted rose by 42%. At the same time, governments around the world are tightening their regulations, making CDP an important tool for strategically preparing for new reporting requirements.

Source: CDP - Company Ratings‍

The Strategic Importance of CDP

Over the past two decades, CDP has become the gold standard for environmental reporting. Both in scientific analyses and in investor rankings, it is regarded as the platform offering the greatest value. Founder Paul Dickinson therefore likes to compare CDP to EDGAR, the central database of the U.S. Securities and Exchange Commission (SEC): Companies that disclose information through CDP make their data visible to the entire financial market.

The data is regularly used by leading financial institutions such as Bloomberg, STOXX, and Goldman Sachs. Major investors such as the European Investment Bank, Aviva, BlackRock, and the New York State Common Retirement Fund also systematically request disclosures through CDP.

The benefits are obvious:

• Investors can analyze climate risks in their portfolios and make informed investment decisions.
• Companies gain insights into risks and opportunities along their value chains and improve their market positioning.
• Politicians and civil society use the data to shape climate policy and influence consumer decisions.
  

For example, CDP data is also incorporated into the UNFCCC Global Climate Action Portal, which supports policy-making processes.

CDP in the Context of Sustainability

CDP is a key component of global ESG reporting. For companies, participating not only entails additional work but also strengthens their strategic position.

• Ensuring comparability: Standardized questionnaires and scoring methods allow investors, customers, and the public to directly compare companies with one another.
• Regulatory relevance: Much of the data requested overlaps with European requirements such as the CSRD/ESRS.
• Ensuring interoperability: CDP is based on global standards such as the GHG Protocol, the Science Based Targets initiative (SBTi), and ISO 14064.
  

As a result, CDP is often seen as a bridge between voluntary disclosure and mandatory regulatory reporting. Companies that report systematically through CDP today gain an advantage for future CSRD compliance while also strengthening their credibility.

How does the CDP rating work?

The CDP rating is based on a comprehensive annual questionnaire divided into several modules. Companies answer questions regarding strategy, data quality, actions, and risks.

The following criteria, among others, will be evaluated:

• Governance & Strategy: How are responsibilities for climate issues defined? Are there measurable goals at the executive board level?
• Risks & Opportunities: What climate-related risks (e.g., carbon pricing) and opportunities (e.g., new markets for green products) are identified and managed?
• Emissions & Data Quality: How complete and reliable are the figures for Scope 1, 2, and 3? Are they audited by an external party?
• Goals & Actions: What reduction pathways are planned, and have they been validated by the SBTi?
• Transparency & Communication: Are assumptions, methods, and progress clearly documented?
  

In the end, CDP assigns a score ranging from A to D-:

The scoring thus shows not only whether data is available, but also how seriously climate management is being taken.

Why is the CDP rating important?

Many companies underestimate the impact of the CDP score. Yet it has an effect on several levels at once:

• Investor Relations: Major institutional investors such as BlackRock and pension funds use CDP data to make investment decisions.
• Reputation & Market Positioning: A good CDP rating builds trust among customers and business partners.
• Regulatory synergies: CSRD and EU Taxonomy data can be covered in advance through CDP reporting.
• Risk Management: Companies use this process to identify emission hotspots and supply chain risks.
• Benchmarking & Competition: Comparability reveals where a company stands relative to its industry peers—and where action is needed.
  

Overall, the CDP serves as a signal to the market: an “A” score signifies proactive management and credible climate strategies, whereas a “D” or “F” can have negative effects on a company’s reputation and access to financing.

Typical use cases

Companies use CDPs not only for disclosure purposes, but also as a strategic tool:

• Preparing for CSRD/ESRS: Collecting data for the CDP makes mandatory reporting easier later on.
• Stakeholder communication: A good rating signals transparency and a sense of responsibility.
• Decarbonization Strategy: CDP is compelling companies to identify gaps in their climate strategies.
• Meeting investor expectations: Capital markets reward companies that disclose and manage their risks.
  

A real-world example: A mid-sized automotive supplier is using the CDP process to systematically collect Scope 3 data for the first time. The result: higher data quality in the CDP questionnaire, an improved rating, and a stronger negotiating position with OEMs.

Key Focus Areas of the CDP

In addition to reporting on climate change alone, CDP covers several topics that are becoming increasingly important to companies. As a result, disclosure becomes not only more comprehensive but also more relevant to a broad range of stakeholders.

• Climate Change: Focus on emissions, risks, targets, and strategies. The survey covers, among other things, Scope 1, 2, and 3 data, internal carbon pricing, and the role of corporate leadership.
• Water: Companies report on water-related risks and opportunities. According to CDP , at least $77 billion was at risk in supply chains due to water-related risks in 2023.
• Forests: Deforestation and land-use changes are considered key drivers of biodiversity loss. CDP is asking about measures to combat deforestation and protect ecosystems.
• Plastics: The focus is now on strategies to reduce plastic consumption and pollution, as well as on preparing for stricter regulations.

CDP Disclosure 2025 Timeline

To ensure a successful application, it is important to keep track of the deadlines. The 2025 disclosure process includes the following dates:

• March 31, 2025: Release of the final questionnaire and guidelines
• April 28, 2025: Publication of the scoring methodology
• June 9, 2025: Deadline for disclosure requests from investors and customers
• June 16, 2025: Start of the reporting cycle (opening of the CDP portal)
• September 15, 2025: Deadline for submissions to be considered
• November 17, 2025: Last chance to submit ungraded answers or changes

Challenges & Pitfalls

As valuable as CDP is, participating in it is just as challenging:

• High level of detail: The questionnaire is complex and covers many topics. Without internal coordination, there is a risk of incomplete responses.
• Scope 3 data gaps: Data is particularly hard to come by in global supply chains—yet it is often crucial for the rating.
• Resource requirements: Reporting is time-consuming and requires a clear mandate within the company.
• Misconceptions: Many companies rely on offsetting or short-term measures, which carry little weight in the CDP scoring.
  

The rule here is: The more structured your internal ESG data management is, the more efficient and successful your CDP reporting will be.

How can companies improve their CDP results?

Companies that want to achieve a good rating must do more than just fill out the questionnaire. A systematic approach is key:

• Understanding the rating methodology: Identifying which factors have the greatest impact on the rating.
• Analyze data from previous years: Use past scores to implement targeted improvements.
• Secure internal support: Actively involve management, the board of directors, and employees.
• Setting Science-Based Targets (SBTs): Defining ambitious and measurable climate goals.
• Use benchmarking: Compare your progress with that of your competitors to identify areas for improvement.
• Improve data quality: Provide complete Scope 1, 2, and 3 data.
• Incorporate external expertise: If necessary, consult accredited CDP partners and consulting firms.
  

Conclusion: CDP is not just an annual questionnaire, but a strategic tool that combines transparency, governance, and competitiveness.

Practical Tips for Businesses

To make your participation in the CDP effective, here are some concrete steps you can take:

1. Start early: Collect data in a timely manner, especially for Scope 3.
2. Clarify responsibilities: Clearly define roles and responsibilities within the company.
3. Integrating data processes: Linking CDP reporting with internal KPIs and CSRD data streams.
4. Use standards: Align methods with the GHG Protocol, SBTi, and ISO 14064.
5. Be transparent: Clearly communicate assumptions, data gaps, and limitations.
   

Companies that take these points to heart not only improve their CDP rating but also gain credibility and resilience in the market.

Further reading

• CDP – Official Website
• GHG Protocol
• Science Based Targets initiative (SBTi)
• European Commission – CSRD/ESRS