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CDP, formerly the Carbon Disclosure Project, runs the world's leading environmental disclosure system — used by investors, companies, cities, and regions to manage and disclose their environmental impact. Over 22,000 companies representing two-thirds of global market capitalisation disclosed through CDP in 2024. If your company is not disclosing yet, a customer or investor is likely to ask for it sooner than you might expect.
What CDP Is and How It Works
CDP's questionnaires gather detailed, standardised environmental data across three themes: climate change, water security, and forests. Questions cover governance, strategy, risk management, emissions, and targets. The scope and complexity of the questionnaire varies by company size and sector, ensuring the assessment is relevant to each organisation's material impacts. Companies that make their scores public are listed on the CDP website's public scores database. CDP investor signatories and supply chain members who requested a company's disclosure can also access scores from companies that choose to keep them private. The questionnaire is designed to evaluate a company's entire environmental management approach — not just emissions figures — which is why preparation and internal alignment across functions matters considerably.
Why CDP Matters for Your Business
Disclosing through CDP delivers tangible business benefits across multiple dimensions. Reducing environmental impact through the actions CDP requires — cutting waste, improving energy efficiency, and strengthening supply chain governance — frequently delivers direct cost savings. Over 680 financial institutions with more than $130 trillion in assets use CDP data to inform investment decisions, making disclosure a material factor in capital access and cost of debt. CDP aligns with TCFD, the S&P Global Corporate Sustainability Assessment, GRI, and SASB, meaning a well-prepared CDP response provides evidence for multiple other reporting requirements simultaneously. Most of the world's largest companies disclose through CDP and increasingly expect their suppliers to do the same — meaning non-disclosure is becoming a supply chain risk as well as a reputational one.
The Rating Structure and Who Should Disclose
CDP assigns scores across five tiers: Leadership (A/A-), Management (B/B-), Awareness (C/C-), Disclosure (D/D-), and Failure (F). Each tier reflects progressively stronger environmental performance — Leadership requires not just disclosure but demonstrated ambition, science-aligned targets, and strategic integration of climate risk. Companies typically begin disclosing when a customer or investor requests it via a formal CDP letter to the board. However, waiting for a request to trigger action means starting the preparation process under time pressure. The companies that consistently perform well start treating CDP as an ongoing internal programme, not an annual questionnaire response.
How to Improve Your CDP Score
Six areas drive meaningful score improvement. First, disclosure quality and completeness — aligning responses with TCFD, GRI, and SASB and providing detailed Scope 1, 2, and 3 data, ideally with third-party assurance. Second, governance and strategy — board-level oversight of climate risk, integration with corporate strategy, and a concrete climate transition plan. Third, emissions reduction — SBTi-aligned targets, energy efficiency improvements, renewable sourcing, and an internal carbon pricing mechanism. Fourth, risk management — scenario analysis across physical and transition risks, and a decarbonisation roadmap supported by a double materiality assessment. Fifth, supply chain engagement — supplier emission disclosure, CDP Supply Chain Programme participation, and sustainable procurement policies. Sixth, stakeholder communication — publicly reporting climate progress through sustainability reports and CDP, and engaging investors and customers on climate commitments. For companies that have disclosed previously, reviewing prior CDP feedback and addressing identified gaps is the single highest-return action available before the next submission window opens.