What is CDP?

The CDP, Carbon Disclosure Project, is a non-profit organization that allows D'assess businesses on their climate change performance, deforestation, water management, plastic waste and biodiversity.

It is one of the CSR evaluations among others on the market.

Through our article, our experts answer all these questions:

• What is CDP?
• What are the benefits for businesses?
• Our advice for a successful CDP questionnaire

What is CDP?

The CDP, Carbon Disclosure Project, is a non-profit organization created in 2000 to meet the need of investors: to have harmonized data on the consideration of climate change by businesses.

With sound A to F score system, the CDP allows investors to rely on a confidence indicator to identify successful companies on climate change issues.

CDP was used by more than 750 financial players managing an asset portfolio estimated at over $136 billion.

Initially, CDP focused on climate change, and in particular carbon emissions, today, it has evolved to expand:

• To water resources, in order to address the problem of overconsumption of water directly linked to climate change,
• Deforestation, to ensure the maintenance of a forest ecosystem that guarantees a natural balance,
• The plastic, to assess the use, management and reduction of plastic waste,
• Biodiversity, to preserve and restore natural ecosystems.

The questionnaire on climate change, on biodiversity and the questionnaire on plastic waste are suitable for all companies, cities or regions that want to assess themselves. For water management and deforestation, in general, the main actors concerned are the sectors of activity that consume the most water and agriculture, mainly for deforestation.

The ambition of the CDP goes beyond a simple rating system, it invites companies to be transparent, to be responsible and to find solutions to improve their impacts on the carbon part, water, forests, plastic and biodiversity.

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CDP, understanding the scoring system

Through his questionnaire, The CDP assesses companies on their environmental performance and their level of commitment to reduce their impacts on the planet.

At the end of this questionnaire, the CDP ranks companies by score ranging from A to D, followed by an F for companies that do not have enough material to obtain a score.

This scoring system is called the “Level of Engagement Score.”

A - Leadership

These businesses understood the risks, impacts and opportunities and communicate transparently about their information on climate change, deforestation, water management, plastic waste or biodiversity.

In addition to understanding their challenges, they implement concrete actions and integrate them into their business strategy.

You can consult the list of A-rated companies on the CDP website.

B - Management

This score is given to companies that have aware of their impacts and are beginning to integrate these issues within corporate strategy.

It is a great first step that rewards companies that show will and are beginning to take actions to limit their impacts.

Contrary to the A grade, businesses are not considered leaders on all topics covered by the questionnaire.

C - Knowledge

Knowledge in English means knowledge! Very rightly, this score is awarded to businesses that are aware of their impact on the environment and biodiversity for example, but have not actions have not yet been implemented nor integrated these issues into business strategy.

D - Disclosure

It is the first grade that a company can obtain, it is awarded by the simple fact of completing the CDP questionnaire. It values companies that communicate information transparently, but have not taken any action or taken any steps to understand and limit their impact on the sustainability issue being assessed.

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What are the benefits of CDP?

Whether for the CDP or another environmental assessment, we advise you to prioritize those that make sense for your business and meet your sustainability challenges. Generally, The CDP is requested by investors to assess your environmental performance.

Our experts share you The 3 major advantages of CDP for a business, city, state, or region.

Competitive advantage

By adopting sustainable practices and communicating about the efforts implemented through the CDP, you can differentiate yourself from your competitors in the market.

A good CDP score indicates proactive management of climate risks, which makes it possible to Entrust investors and facilitates access to responsible capital.

Brand image

Participating in CDP shows your commitment to sustainability and transparency, which can improve the image of your business with customers, investors, and other stakeholders

Anticipation of regulations

If you are preparing for CDP, you are ready to share your environmental data and you are starting to think about questions about reducing your impact on climate change, water, forest, plastic, or biodiversity.

Depending on your progress in this process, you finally meet the various regulatory expectations. The CDP allows you to reduce the risks of non-compliance and avoid sanctions.

If your company is subject to the CSRD, some of your work produced for the CDP will be used for the ESRS E1 of the CSRD on environmental issues.
Indeed, since 2024, the CDP has been aligned with the ISSB climate standard (IFRS S2), which is itself aligned with the ESRS E1 of the CSRD.

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Our advice for a successful CDP questionnaire

Getting a good score on your CDP questionnaire requires a lot of investment on the part of companies. It is a proof of a real commitment to environmental issues.

To get the best possible score, we recommend that you follow these key steps:

• Make an inventory and define its risks, opportunities and impacts (IRO),
• Define your strategy and engage its teams,
• Choosing the right indicators to manage its data,
• Writing your policies and formalize the proofs of action,
• Set up an action plan in line with the ambitions of your business,
• Respond to the questionnaire transparently and detailed,
• Submit and Communicate publicly its results.

Find all the details in our next article on the 7 steps to get a good CDP score.

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To go further: use a tool

If you're embarking on an adventure, all of these steps can be complicated. Responding to the CDP questionnaire requires rigor and a lot of formalism.

To save time, you can use a platform that will centralize all your data and help you set up a robust environmental management system.

This management system, once produced for the CDP, can also be used for the environmental part in EcoVadis, the ESRS E1 in the CSRD and for other evaluations, certifications or labels.

Using a tool will allow you to share information to save time and focus on your strategy and the actions to be put in place!

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Conclusion

The CDP is a very robust framework that helps businesses engage on the topics of climate change, deforestation, water management, plastic waste and biodiversity.

It allows companies evaluated to be more transparent and more aware efforts to be made to improve their environmental practices. These efforts are valued by the various stakeholders, in particular by investors.

In this next article, we will share with you in detail the 7 steps to pass your CDP questionnaire and get a good score.