What is the CDP?

The Carbon Disclosure Project (CDP) is a non-profit organization thatassesses companies on their performance in terms of climate change, deforestation, water management, plastic waste and biodiversity. 

It is one of several CSR assessments on the market.

In our article, our experts answer all these questions:

• What is the CDP? 
• What are the benefits for companies? 
• Our tips for a successful CDP questionnaire

What is the CDP? 

The Carbon Disclosure Project (CDP) is a non-profit organization set up in 2000 to meet investors' need for harmonized data on how companies are taking climate change into account.

With its A to F scoring system, the CDP provides investors with a trusted indicator of which companies are performing well on climate change issues. 

The CDP has been used by over 750 financial players managing a portfolio of assets estimated at over $136 billion.

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

• Water resources, to address the problem of overconsumption of water directly linked to climate change,
• Deforestation, to maintain a forest ecosystem that guarantees a natural balance,
• Plastic, to assess the use, management and reduction of plastic waste,
• Biodiversity, to preserve and restore natural ecosystems.

The questionnaires on climate change, biodiversity and plastic waste are suitable for any company, city or region wishing to assess its own performance. For water management and deforestation, in general, the main players concerned are the sectors of activity that consume the most water and agriculture, mainly for deforestation.

CDP's ambition goes beyond a simple rating system: it invites companies to be transparent, to be responsible and to find solutions to improve their impact on carbon, water, forests, plastics and biodiversity.

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CDP, understanding the rating system

Through its questionnaire, the CDP assesses companies on their environmental performance and their level of commitment to reducing their impact on the planet.

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

This rating system is called the "Level of Engagement Score".

A - Leadership

These companies have understood the risks, impacts and opportunities, and communicate transparently on climate change, deforestation, water management, plastic waste and biodiversity.

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

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

B - Management

This score is awarded to companies that are aware of their impacts and are beginning to integrate these issues into their corporate strategy. 

This is a fine first step, rewarding those companies that have shown the will to take action to limit their impact.

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

C - Knowledge

Knowledge means knowledge! Quite rightly, this score is awarded to companies that are aware of their impact on the environment and biodiversity, for example, but have not yet implemented actions or integrated these issues into their corporate strategy.

D - Disclosure

This is the first rating a company can obtain, and is awarded simply by completing the CDP questionnaire. It is awarded to companies that communicate information transparently, but have not taken any action or implemented any measures to understand and limit their impact on the sustainability issue being assessed.

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What are the advantages of CDP? 

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

Our experts share with you the 3 major advantages of CDP for a company, city, state or region.

Competitive advantage

By adopting sustainable practices and communicating your efforts via CDP, you can differentiate yourself from your competitors in the marketplace.

A good CDP score indicates proactive climate risk management, which helps build investor confidence and facilitates access to responsible capital.

Image de marque

Participating in the CDP shows your commitment to sustainability and transparency, which can improve your company's image with customers, investors and other stakeholders.

Anticipating regulations

If you're preparing for the CDP, you're ready to share your environmental data and start thinking about how to reduce your impact on climate change, water, forests, plastics or biodiversity.

Depending on how far you have progressed in this process, you will eventually meet the various regulatory expectations. CDP enables you to reduce the risk of non-compliance and avoid sanctions.

If your company is subject to the CSRD, some of the work you produce for the CDP will be used for the CSRD's ESRS E1 on environmental issues.
In fact, since 2024, the CDP has been aligned with the ISSB's climate standard (IFRS S2), which in turn is aligned with the CSRD's ESRS E1.

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Our tips for a successful CDP questionnaire 

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

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

• Take stock and define risks, opportunities and impacts (RIO),
• Define your strategy and engage your teams,
• Choosing the right indicators to manage your data,
• Drafting policies and formalize proof of action,
• Set up an action plan in line with your company's ambitions,
• Answer the questionnaire transparently and in detail,
• Submit and publicly communicate results.

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

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To go further: use a tool

If you're just starting out, all these steps can be complicated. Completing the CDP questionnaire requires rigor and a great deal 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 of EcoVadis, the ESRS E1 in the CSRD and for other assessments, certifications or labels. 

Using a tool will enable you to pool information, save time and focus on your strategy and the actions you need to take!

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Conclusion

The CDP is a highly robust framework that helps companies commit to climate change, deforestation, water management, plastic waste and biodiversity.

It enables companies to be more transparent and aware of the efforts they need to make to improve their environmental practices. These efforts are valued by the various stakeholders, particularly investors.

In this next article, we share with you in detail the 7 steps to a successful CDP questionnaire and a high score.