Carbon Disclosure Project

Responding to CDP (Carbon Disclosure Project):
What You Need to Know

Founded in 2000, CDP (Carbon Disclosure Project) is a global non-profit organization that helps companies and cities disclose their environmental impact. It aims to support thousands of companies, cities, states, and regions in managing their risks and opportunities on climate change, deforestation, and water security.


Headquartered in London, CDP Worldwide which is the Group’s holding company is registered in England and Wales. It has already created a system that resulted in a unique approach in terms of engagement on environmental issues across the globe. The world’s economy, including the largest companies, regard CDP as the main standard of environmental reporting, considering that it has the most extensive dataset on environmental action.


What Does the CDP Do?


CDP focuses on investors, companies, and cities taking the necessary action to create a sustainable economy by means of measuring and understanding their environmental impact. Their vision is to see a thriving economy that works for individuals and organizations in the long-term process.


Since 2003, CDP has started conducting an annual survey to gather details and information on greenhouse gas emissions by companies.

CDP Supply Chain


Today’s leaders are fully aware that climate risks and environmental impact don’t end at their offices. Institutional investors and consumers are more interested to see how organizations are taking social responsibility for their decision-making. Resiliency in supply chain and demand proved to be more crucial than ever amidst the global pandemic.

In response to this, CDP urges every company to take action and meet its sustainability targets by being a member of the CDP supply chain.


Why Should You Disclose as a Company? Here are the Top 4 Reasons


As one of the world’s oldest and most well-known sustainability reporting models, CDP has proven its value to the most refined and influential decision-makers.

In fact, CDP has the largest collection of self-reported environmental details and information and is the one responsible for creating a world-class approach that allows organizations of all kinds to measure, manage, disclose, and share energy efficiency data.

If you’ve never tried reporting to CDP before, below are the four reasons why you should:


  1. Performance standard – reporting to CDP is one of the significant ways of tracking your performance from time to time and assessing your organization’s performance against its competitors. Moreover, a CDP score is an easy and simple way to manifest sustainability leadership and your effort to work towards reducing carbon footprints that would mitigate climate change.
  2. Risk management – if you choose to not respond, it may result in negative reputational consequences. Investors and stakeholders may ask you why you choose not to respond when they had requested you to do so? Are you trying to hide something from your investors and the public?


To avoid such negative questions, responding to CDP is the most effective way to eliminate suspicion. Furthermore, responding to CDP will also indicate that you are indeed providing clear evidence that your organization is committed to long-term sustainability.


  1. Everyone is doing it – in 2020 alone, a record-breaking of more than 9,600 companies had disclosed to CDP. It is by far 14% more than in 2019, and a whopping 70% more than when the Paris Agreement was signed in April of 2016. This figure only means that the organizations involved are realizing the value in the burden it takes to report to CDP.
  2. Taking action– the CDP partners with different plans and projects that enhance sustainability in activities. If your company commits to CDP’s external initiatives, not only it will be on CDP’s website, but it will also gain meaningful action that you can effectively use to address carbon emissionsand climate change in general.


Final Thoughts


Responding to CDP should not be considered a chore or additional burden to your organization. Rather, it should be treated as an established framework that if done well, will not only help your business to stay on the right path but would also lead your organization in reaching the emission reduction targets. Responding to CDP will provide you a long-term, and efficient sustainability strategy that could enhance your business image and operations. CDP works to transform the way the world does business to prevent dangerous climate change and protect our natural resources. They see a world where capital is efficiently allocated to create long-term prosperity rather than short-term gain at the expense of our environment.

Evidence and insight is vital to driving real change. CDP uses the power of measurement and information disclosure to improve the management of environmental risk. By leveraging market forces including shareholders, customers and governments, CDP has incentivized thousands of companies and cities across the world’s largest economies to measure and disclose their environmental information. They put this information at the heart of business, investment and policy decision making.
CDP holds the largest collection globally of self-reported climate change, water and forest-risk data. Through their global system companies, investors and cities are better able to mitigate risk, capitalize on opportunities and make investment decisions that drive action towards a more sustainable world.