Introduction to CDP

CDP Cost: How Much Does a CDP Disclosure Really Cost for a Company?

Participating in CDP may seem free at first glance, but it is demanding in practice. While CDP does not charge submission fees, a CDP disclosure requires significant time, internal resources, and a high level of formalisation. When anticipated and properly budgeted, however, it becomes a strategic lever for ESG credibility, commercial performance, and long-term efficiency.

Pierre Poirmeur

Co-founder and CEO of Ditto

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In this article, we break down the real cost of a CDP disclosure, the factors that influence it, and the levers to optimise the investment without compromising your score.

Understanding the Cost Structure of a CDP Disclosure

The Carbon Disclosure Project (CDP) does not operate like a traditional paid certification.

There are no mandatory registration or submission fees for companies being assessed.

However, CDP comes with significant indirect costs, mainly related to:

  • data collection and structuring,
  • coordination across internal teams,
  • drafting and formatting responses,
  • validation and overall consistency of the disclosure.
Good to know: CDP is funded by investors and large buying organisations (Capital Markets and Supply Chain members) that use CDP data to inform decision-making. Disclosure remains free for responding companies.

The Main Cost Drivers of a CDP Disclosure

1. Data Collection and Preparation

The first—and often largest—cost driver is time spent collecting and consolidating information, including:

  • existing environmental policies,
  • greenhouse gas emissions data (Scopes 1, 2, and often 3),
  • analysis of impacts, risks, and opportunities (IRO),
  • action plans and reduction targets.

This effort must be multiplied by the number of themes covered (Climate, Water, Forests, Plastics, Biodiversity).

When data is scattered, poorly formalised, or inconsistent, preparation time increases significantly.

2. Cross-Functional Involvement

CDP disclosures are rarely handled by a single person.

They typically involve:

  • sustainability / ESG teams,
  • top management,
  • finance teams,
  • sometimes procurement, operations, or suppliers.

Human cost increases with organisational size and reporting complexity, especially once Scope 3 is included.

3. Questionnaire Drafting and Translation

CDP assesses both the substance and the structure of responses, not just raw data.

Responses must be:

  • clearly structured,
  • aligned with CDP terminology,
  • consistent across sections.

In addition, the questionnaire must be submitted in English, Spanish, Portuguese, or Chinese.

For many French-speaking companies, this requires specialised rewriting and translation work, which is often underestimated.

4. Quality Assurance and Consistency Checks

CDP does not verify the data submitted.

Full responsibility for data accuracy rests with the company.

Quality control is therefore essential to:

  • avoid internal inconsistencies,
  • secure referenced evidence,
  • prevent score losses due to incomplete or poorly oriented answers.
Good to know: A partially completed or inconsistent response can result in zero points for the entire question, even if 90% of the work has been done.

How Much Does a CDP Disclosure Actually Cost?

The cost of a CDP disclosure depends less on CDP itself than on your starting point and the score you are aiming for.

Typical Cost Scenarios

  • SME – first disclosure, no immediate customer pressure
    → cost mainly in internal time (several dozen cumulative working days)
  • SME / mid-sized company – first disclosure with customer expectations (target score B)
    → high cost if done alone (time + risk), often optimised through methodological support
  • Company already rated – goal to maintain or improve score
    → cost focused on formatting, speed, and consistency
  • Company targeting an A / A-list score
    → a structuring process comparable to a full ESG project, with governance, trajectory, and formal transition plan

The main cost driver is not company size, but score pressure and data maturity.

Factors That Influence the Final Cost

Factor Impact on Cost
Quality of existing data Scattered data increases collection time
ESG maturity Well-equipped companies significantly reduce effort
Reporting scope Scope 3 and value chain increase complexity
Score expectations Higher targets require stricter formalisation
Language and drafting Specialised translation and rewriting required
Good to know: CDP is aligned with IFRS S2 and CSRD ESRS E1 standards: well-prepared reporting can be reused across multiple regulatory frameworks.

In-House vs. Supported CDP Disclosure: Cost Impact

Option 1 – Fully In-House Management

Pros:

  • full control over content,
  • limited direct financial cost.

Cons:

  • heavy operational workload,
  • risk of formatting and scoring errors,
  • difficulty understanding scoring subtleties.

This option is viable only when score pressure is low or after several years of structured disclosures.

Option 2 – Supported Disclosure

Pros:

  • significant time savings,
  • clearer understanding of scoring logic,
  • securing points that truly impact the score.

Cons:

  • additional financial cost,
  • need for internal coordination.

The higher the expected score, the more cost-effective support becomes relative to risk.

The Real Cost of CDP: Opportunity Cost

The cost of CDP is not limited to time spent.

A weak or poorly positioned score can:

  • complicate tender processes,
  • delay client decisions,
  • weaken relationships with key customers.

The cost of a poor submission is often higher than the cost of proper preparation.

Reducing Costs and Maximising CDP ROI

The most effective levers include:

  • centralising documents and evidence from the outset,
  • anticipating CDP several months in advance,
  • reusing data for EcoVadis, CSRD, and other frameworks,
  • tooling response structuring to limit repetitive work.
Good to know: A centralised ESG platform significantly reduces administrative burden and improves multi-framework consistency (CDP, EcoVadis, CSRD).

CDP Cost: Key Takeaways

Key Element Details
Direct CDP fees None
Main costs Human time, structuring, drafting, quality control
Average duration Around 3 months of preparation
Key driver Pressure on the target score
Main risk Underscoring due to formatting issues
Optimal approach Anticipation, structuring, and data reuse

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