CDP: definition, purpose, how it works, and why it matters
The Carbon Disclosure Project (CDP) is a global non-profit that runs the world's environmental disclosure system. Understanding CDP is crucial for businesses committed to transparency and sustainability.
What is CDP?
The Carbon Disclosure Project (CDP) is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
Founded in 2000, CDP works with over 680 investors with assets of $130 trillion to drive corporate and government action on climate change, water security and deforestation.
Why CDP Matters
CDP scoring provides a comprehensive assessment of your company's environmental performance. A strong CDP score can:
- Enhance your reputation with investors and stakeholders
- Improve access to capital and reduce cost of capital
- Demonstrate leadership in sustainability
- Identify risks and opportunities in your value chain
How CDP Scoring Works
CDP uses a detailed scoring methodology that assesses companies on four levels:
- Disclosure: Measuring the completeness of your response
- Awareness: Assessing your understanding of environmental issues
- Management: Evaluating your actions to address environmental impacts
- Leadership: Recognizing best practices and environmental stewardship
Key Steps to Improve Your CDP Score
Improving your CDP score requires a strategic approach:
1. Establish robust data collection systems
Accurate, comprehensive data is the foundation of a strong CDP response.
2. Set science-based targets
Align your emissions reduction goals with climate science.
3. Engage your value chain
Work with suppliers and customers to reduce Scope 3 emissions.
4. Implement governance structures
Ensure board-level oversight of climate-related issues.
5. Disclose transparently
Provide clear, detailed information about your environmental performance and strategy.
The Complete EcoVadis Guide
3 weeks to succeed in your CSR assessment
A proven, step-by-step method to maximize your score and turn your evaluation into a real advantage.
Practical AI & CSR insights—tools, studies, and templates, in your inbox
Good to know:
A CSR assessment does not measure what you intend to do, but what your company is actually able to demonstrate, supported by documents and indicators.
CSR Assessment Guide
Want to clearly understand where you stand and which actions to prioritise to succeed in your CSR assessments, without starting from scratch every time?
Related articles
CSR Assessment: Understand and Structure Your Strategy
A CSR assessment helps measure the maturity of your corporate social responsibility approach and move from an intuitive approach to a structured, stra...
Carbon Footprint: A Step-by-Step Business Guide
Measuring and reducing your carbon footprint is essential for any business committed to sustainability. This comprehensive guide provides practical ad...
5 Sustainability Mistakes That Waste Weeks of Work
Avoid these common pitfalls that derail sustainability initiatives and waste valuable time. Learn from the mistakes of others to accelerate your ESG j...
Ready to get
compliant? Ditto.
Turn your CSR program into a strategic advantage with a compliance copilot that's with you every step of the way.