What is CDP?

CDP (formerly known as the Carbon Disclosure Project) is a nonprofit organization that runs the global environmental disclosure system for companies, cities, states, and regions to manage their environmental impacts. The organization’s goal is to accelerate environmental action by disclosing and transparently reporting on key environmental metrics. These disclosures help investors, businesses, and policy makers make informed decisions to tackle climate change, protect water resources, and preserve forests.

By providing a standardized, accessible platform for reporting, CDP enables organizations to track their progress, compare performance, and make data-driven decisions to improve their environmental footprint.

Why Disclose with CDP?

1. Drive Action on Climate Change
   Climate change is one of the most significant challenges of our time. CDP empowers businesses and governments to disclose their carbon emissions and set science-based targets to reduce them. This leads to actionable insights that contribute to global goals, like the Paris Agreement to limit global warming to 1.5°C.
2. Enhance Corporate Transparency and Reputation
   In today’s business environment, sustainability is no longer optional. Companies that disclose through CDP demonstrate leadership and a commitment to tackling environmental issues. This transparency boosts reputation, builds trust with stakeholders, and attracts Sustainable investors who are prioritizing responsible corporate behavior.
3. Access to Valuable Environmental Data
   CDP collects detailed data from thousands of organizations worldwide, creating one of the largest global datasets on climate change, water, and forests. This information allows companies and investors to assess environmental risks and opportunities, enabling better decision-making and risk mitigation.
4. Meet Regulatory and Investor Expectations
   Environmental disclosure is becoming increasingly important for regulatory compliance and investor scrutiny. CDP provides a platform for companies to meet emerging disclosure regulations and respond to investor demands for transparency in relation to climate risks, water stewardship, and forest management.
5. Drive Competitive Advantage
   Transparent reporting on climate, water, and forests allows companies to benchmark against peers, identify areas for improvement, and showcase their sustainability leadership. The CDP A-List, which recognizes the top performers in environmental disclosure, offers a valuable competitive advantage for companies striving for excellence in sustainability.

CDP Disclosures: Climate, Water, and Forests

CDP operates three distinct questionnaires that organizations can use to disclose critical environmental data:

1. Climate Change
   The Climate Change questionnaire allows companies to disclose their carbon emissions, climate-related risks, and mitigation strategies. It helps businesses track their greenhouse gas emissions (GHG), set science-based targets, and report on efforts to transition to a low-carbon economy. CDP’s climate data supports risk management and decision-making, and aligns companies with global climate goals.
2. Water Security
   The Water Security questionnaire focuses on how companies manage their water resources, addressing issues like water scarcity, water pollution, and responsible water use. Water security is a growing concern for businesses, especially in regions where access to clean, sustainable water is becoming increasingly challenging. CDP helps organizations identify water-related risks and implement effective water management practices.
3. Forests
   The Forests questionnaire is aimed at organizations with significant exposure to deforestation risks. It evaluates the impact of companies’ operations on global forests and encourages the sustainable sourcing of commodities like palm oil, soy, and timber. By reporting through CDP, businesses can help reduce deforestation, enhance biodiversity, and contribute to global forest preservation efforts.

Benefits of Disclosing with CDP

1. Access to Investor Networks
   CDP connects companies to a network of over 515 institutional investors managing over $106 trillion in assets. By disclosing their environmental data, organizations attract the attention of these investors who are increasingly making decisions based on ESG (Environmental, Social, and Governance)
2. Data-Driven Decision Making
   Through detailed and standardized reporting, CDP provides companies with a clear picture of their environmental performance. This data helps organizations make informed decisions, track progress, set meaningful sustainability goals, and prioritize actions to reduce their environmental footprint.
3. Benchmarking and Recognition
   CDP’s A-list recognition is awarded to organizations that demonstrate exceptional leadership in environmental performance. Being named to the CDP A-list increases visibility and reputation, positioning companies as leaders in sustainability and environmental responsibility.
4. Risk Mitigation
   CDP’s platform enables companies to assess climate-related risks and take action to reduce vulnerabilities. Whether it’s understanding the potential impact of carbon pricing, shifting regulations, or physical risks from extreme weather events, CDP disclosures help businesses make better decisions to future-proof operations.
5. Increase Stakeholder Trust
   Transparent environmental reporting through CDP helps build trust with customers, investors, employees, and regulatory bodies. It shows a company’s commitment to sustainability and corporate responsibility, which can result in enhanced customer loyalty and stakeholder engagement.