CDP: Climate, Water, and Forest Disclosure

What It Is

CDP (formerly the Carbon Disclosure Project) is the world's largest environmental disclosure platform, running a global system for companies, cities, states, and regions to manage and disclose their environmental impacts. Founded in 2000, CDP collects self-reported data through an annual questionnaire covering climate change, water security, and forests (deforestation), then scores responses and makes the data available to investors and purchasers.

CDP operates as an intermediary between companies and the investors and customers requesting environmental information. When an investor or purchasing organization signs onto CDP's platform, CDP sends disclosure request letters to companies on their behalf. More than 22,100 companies disclosed through CDP in 2025, representing more than half of global market capitalization.

Since 2024, CDP has run a single integrated corporate questionnaire with separate scores for Climate Change, Water Security, and Forests; it also covers biodiversity and plastics, which are not scored. Its climate questions have followed TCFD's four pillars since 2018, and since 2024 the questionnaire has been aligned with the ISSB's IFRS S2. It collects detailed data on governance, risks and opportunities, strategy, targets, and performance metrics. CDP also collects data on supply chain emissions, SBTi targets, renewable energy, and verified emissions data.

CDP's scoring methodology evaluates responses across four levels: Disclosure (providing data), Awareness (demonstrating understanding of issues), Management (taking action), and Leadership (implementing best practices). Only companies that demonstrate strong action across all areas achieve the A List: 877 companies in the 2025 cycle, about 4% of the nearly 20,000 scored.

Who Uses It

• Companies requested by investors — in 2025, 640 investors with US$127 trillion in assets requested disclosure through CDP and use its data for investment decisions and engagement
• Supply chain participants — more than 270 major buyers (including Walmart and L'Oréal) used CDP Supply Chain in 2025 to request data from about 45,000 suppliers and assess their environmental performance
• Companies benchmarking performance — CDP scores provide a widely recognized benchmark for environmental management maturity
• Companies reporting to multiple frameworks — CDP disclosure data can be leveraged for TCFD, ISSB, and other reporting requirements
• Cities and subnational governments — CDP runs a parallel platform for cities and states/regions

Key Requirements

The climate change sections of CDP's questionnaire cover:

1. Governance — Board oversight, management responsibility, incentives linked to climate targets
2. Risks and Opportunities — Identification of physical and transition risks, financial implications, management processes
3. Business Strategy — Climate scenario analysis, transition plans, low-carbon products and services
4. Targets and Performance — Emissions reduction targets (including SBTi status), progress tracking, renewable energy targets
5. Emissions Data — Scope 1, 2, and 3 emissions with methodology and verification status
6. Energy — Energy consumption data, renewable energy procurement, energy efficiency measures
7. Carbon Pricing — Internal carbon pricing, exposure to carbon taxes and ETS
8. Engagement — Supplier engagement on climate, customer engagement, policy engagement

Responses are scored against sector-specific scoring methodologies, with the highest scores requiring verified emissions data, science-based targets, and evidence of leadership practices.

How to Implement

Phase 1: Preparation (2-3 months before deadline) Register on the CDP platform. Review the questionnaire structure and scoring methodology. Identify data owners for each section. Assess gaps against prior year response or against the questionnaire if first-time.

Phase 2: Data Collection (1-2 months) Gather emissions data (Scope 1, 2, 3), energy data, water data (if responding to water security), governance information, risk assessments, targets, and verification documentation. Coordinate across departments — sustainability, finance, operations, procurement, legal.

Phase 3: Response Development (2-4 weeks) Draft responses section by section. Prioritize completeness (all questions answered), specificity (quantitative data over qualitative), and evidence (verification, third-party assessments, board minutes). Review scoring criteria while drafting to ensure responses address what the scoring methodology rewards.

Phase 4: Quality Review and Submission Internal review for accuracy and consistency. Cross-check emissions data against other public disclosures. Submit by the scoring deadline (mid-September in the 2026 cycle); responses filed after it, up to the final close, are not scored. Consider engaging a consultant or verifier to review before submission.

Relationship to Other Frameworks

CDP serves as a reporting platform that connects to multiple frameworks:

• TCFD: CDP's climate questions have been aligned with the TCFD recommendations since 2018; the TCFD disbanded in 2023, and IFRS S2 now carries its recommendations
• GHG Protocol: CDP's emissions reporting requirements are aligned with the GHG Protocol Corporate Standard, Scope 2 Guidance, and Scope 3 Standard
• SBTi: CDP captures and reports SBTi commitment and validation status; a CDP response is one way to meet the SBTi's requirement to report emissions and target progress publicly each year
• ISSB: Since 2024, CDP's questionnaire has been aligned with IFRS S2, which CDP treats as the baseline for its climate disclosure
• CSRD/ESRS: CDP has worked with EFRAG since 2023, published a mapping to ESRS E1 in March 2025, and plans new mappings for the revised ESRS; CDP is not a channel for filing CSRD reports

Why It Matters

CDP matters because it creates accountability through transparency. By collecting standardized environmental data from thousands of companies and making it available to investors and purchasers, CDP has created market incentives for environmental management that regulation alone couldn't produce.

The platform's influence extends beyond disclosure. CDP scores are incorporated into ESG ratings, investment indices, and procurement decisions. Companies on the A-list gain reputational advantages in capital markets and supply chain relationships. Companies that refuse to disclose or score poorly face engagement pressure from investors and potential exclusion from procurement programs.

Because CDP's questionnaire uses IFRS S2 as its climate baseline and is mapped to ESRS, companies can reuse much of the same data across CDP, ISSB-based, and CSRD reporting.