CDP reporting in 2026: Why companies still need to take it seriously
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CDP reporting continues to play a critical role in how companies demonstrate environmental performance to investors, customers, and global supply chains. While the fundamentals of CDP disclosure remain familiar, expectations around quality, consistency, and year-on-year improvement have increased significantly.
For companies CDP is no longer just a voluntary sustainability exercise. It has become a commercial and reputational requirement, driven by multinational customers, investor expectations, and tightening ESG scrutiny across global markets.
This article focuses on why CDP reporting still matters, what has changed, and why maintaining or improving a CDP score requires continuous effort, not a one-off submission.
Why CDP reporting is still important for businesses
CDP remains one of the most widely used environmental disclosure platforms globally. Thousands of investors, lenders, and procurement teams rely on CDP data to assess environmental risk, resilience, and long-term value creation.
CDP reporting is important because it:
- Acts as a trusted signal to international customers and investors
- Supports access to global supply chains and tenders
- Demonstrates alignment with climate-related disclosure expectations such as TCFD and IFRS S2
- Strengthens internal understanding of climate risks, opportunities, and emissions exposure
- Supports long-term competitiveness as sustainability requirements continue to tighten
Increasingly, companies are not asked whether they disclose to CDP, but how strong their score is and whether it is improving.
What has changed in CDP reporting
One of the biggest misconceptions is that CDP reporting is static. In reality, the bar is raised almost every year.
Key changes companies are experiencing include:
- Higher expectations for data quality and completeness
- Greater emphasis on Scope 3 emissions and supply chain engagement
- Stronger scrutiny of governance, board oversight, and accountability
- Increased focus on transition planning, targets, and implementation
- Reduced tolerance for generic or narrative-only responses
For companies that previously scored well, this means standing still can result in a lower score, even if internal activities have not changed.
Why CDP scores can slip without continuous improvement
A common challenge we see is companies assuming that once they reach a certain CDP score, it can be maintained with minimal effort.
In practice, CDP scoring is relative and progressive. Scores can slip because:
- Questionnaires evolve year-to-year
- Scoring criteria become more detailed
- Peer performance improves
- Evidence requirements become stricter
- Targets and strategies are not updated
To maintain or improve a CDP score, companies must continuously develop internal processes, refine governance, and strengthen data management.
CDP rewards demonstrated progress, not intention.
The business advantages of a strong CDP rating
A well-managed CDP disclosure delivers tangible business benefits, particularly for companies operating in export-driven or investor-facing markets.
Key advantages include:
- Improved positioning in customer and supplier assessments
- Stronger credibility with international investors and lenders
- Better understanding of climate-related risks and opportunities
- Improved internal coordination across sustainability, finance, operations, and procurement
- Enhanced brand and reputation in competitive markets
For suppliers, CDP performance increasingly influences who stays on preferred supplier lists and who does not.
How many companies are reporting to CDP
CDP participation continues to grow year on year.
- Over 22,000 companies globally now disclose through CDP
- These companies represent a significant majority of global market capitalisation
- CDP data is used by hundreds of financial institutions to inform investment and risk decisions
- Supply chain requests are increasing, particularly from large multinationals
This growth means that non-disclosure or weak disclosure stands out more than ever.
The core principles of CDP reporting: What’s involved
While the detailed process is covered in our dedicated CDP guide, all CDP disclosures are built around a consistent set of principles:
- Governance: Board and senior management oversight of environmental risks
- Strategy: Integration of climate and environmental risks into business strategy
- Risk & opportunity management: Identification, assessment, and mitigation
- Targets & performance: Emissions, water, forest impacts, and reduction targets
- Metrics & data: Quantitative, auditable, and year-on-year comparable data
- Supply chain engagement: Managing upstream and downstream impacts
Strong CDP disclosures are evidence-led, structured, and aligned with recognised frameworks.
CDP: A compliance-driven reality
Globally, CDP disclosure are rarely driven by internal ambition alone.
Most companies disclose because:
- A key customer or investor requests it
- It is required as part of supplier sustainability assessments
- It supports broader ESG, climate, or transition reporting
- It is increasingly expected for large or fast-growing businesses
Companies that prepare early and approach CDP strategically are far better positioned than those reacting under time pressure.
How companies approach CDP improvement
For organisations that have already disclosed, improvement usually starts with:
- Reviewing previous CDP feedback
- Identifying gaps in governance, data, or strategy
- Strengthening internal ownership and accountability
- Improving data quality and documentation
- Aligning climate actions with disclosed commitments
For first-time reporters, the focus is on building a credible foundation rather than chasing scores prematurely.
Conclusion: CDP is not a one-off exercise
CDP reporting has evolved from a voluntary disclosure into an ongoing performance benchmark.
Maintaining or improving a CDP score requires:
- Continuous development of governance and processes
- Strong, consistent data management
- Alignment between strategy, targets, and action
- A clear understanding of evolving CDP expectations
Whether your organisation is disclosing for the first time or looking to strengthen an existing score, the right guidance can turn CDP from a compliance burden into a strategic advantage.
Would you like to find out more about CDP?
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