If you’ve heard about CDP disclosure in meetings, you’re not alone. The Carbon Disclosure Project is now one of the most important environmental reporting systems in the world. Over 18,700 companies used it in 2023. But many companies still don’t understand how it works.
You might be doing your first CDP submission. Or you might want to improve your current approach. The disclosure process can feel confusing. The good news? It’s simpler than you think once you know the key parts.
Let’s look at everything you need to know about CDP disclosure. We’ll cover why it matters and the key components of successful participation.
What is CDP and why does it matter for your organisation?
CDP used to be called the Carbon Disclosure Project. It runs the world’s biggest environmental disclosure system. Think of it as the gold standard for companies being open about climate change, water security, and forest protection.
It started with climate focus. Now it’s a powerful platform that helps investors, companies, and governments understand environmental impacts and risks.
The system has three main questionnaires that companies can fill out:
- Climate change questionnaire – covers greenhouse gas emissions, climate risks, and reduction strategies
- Water security questionnaire – looks at water governance, risks, and care practices
- Forests questionnaire – checks supply chain impacts on forest ecosystems, including palm oil, timber, and soy
Here’s what’s interesting for your company. CDP participation isn’t just about sustainability anymore. Investors managing over $130 trillion in assets now use CDP data for investment decisions.
Beyond money, stakeholder pressure for CDP participation has grown significantly. Customers want transparency about environmental performance. Regulatory bodies use CDP data to make policy decisions.
Many companies also find that the disclosure process helps them improve by showing areas where environmental management could be better. This foundation of understanding leads us to the practical aspects of actually participating in the system.
Breaking down the CDP disclosure timeline and requirements
The CDP disclosure process follows the same annual cycle each year. This makes planning easier once you understand it. The questionnaires usually open in April.
Companies have several months to gather data and prepare responses before the July deadline. This might sound like plenty of time. But those months can go by quickly.
Not every company has the same requirements. Some companies participate voluntarily. They see CDP disclosure as a chance to show environmental leadership.
Others respond to investor requests through CDP’s supply chain programme. This is where large companies ask their suppliers to share environmental information.
The data collection requirements can be extensive. This depends on which questionnaires you’re completing. For climate change disclosure, you’ll need comprehensive greenhouse gas emissions data across all three scopes.
You’ll also need information about climate-related risks and opportunities. Plus details about your governance structures and reduction targets. The water and forests questionnaires have their own specific data requirements.
Each questionnaire is divided into modules that build step by step. You’ll start with governance questions about board oversight and management processes. Then you’ll move through risk assessment and strategy sections.
Finally, you’ll dive into targets, initiatives, and performance data. The structure makes sense. But the level of detail required can surprise first-time participants.
Many companies don’t realize that CDP expects supporting evidence for many responses. Simply saying you have climate policies isn’t enough. You need to show how these policies are implemented and monitored.
This evidence-gathering often takes longer than expected. So build extra time into your timeline. Once you submit your disclosure, understanding how it’s evaluated becomes crucial for future improvements.
How CDP scoring works and what your grade really means
CDP’s scoring system uses an A to D scale. But it’s much more sophisticated than a simple grading system. The scoring reflects four progressive levels of environmental stewardship:
- Disclosure (D) – basic disclosure without evidence of environmental awareness or action
- Awareness (C) – shows awareness of environmental issues and some basic management approaches
- Management (B) – demonstrates coordinated action and comprehensive management systems
- Leadership (A) – represents environmental leadership with excellent management systems, ambitious targets, and innovative approaches
Only a small percentage of companies achieve A-list status each year. This makes it a genuine mark of distinction in environmental performance.
What’s interesting about CDP scoring is that it’s not just about your current performance. The system rewards companies that show continuous improvement, ambitious target-setting, and transparent reporting about challenges as well as successes. This means that even companies in traditionally high-impact industries can achieve strong scores.
Your CDP score has real-world implications beyond bragging rights. A-list companies often see enhanced reputation, improved stakeholder relationships, and better access to sustainable finance. Poor scores can raise red flags with investors and customers.
Understanding the scoring system can help you focus your efforts where they’ll have the greatest impact. Rather than trying to perfect every aspect of your environmental programme immediately, you can prioritize improvements. Focus on those that will show progress through the maturity levels while building towards longer-term leadership.
Given the complexity of both the questionnaires and scoring system, many companies find themselves wondering whether they have the internal expertise to navigate this process effectively.
Ready to tackle your CDP disclosure?
CDP disclosure might seem complex at first. But breaking it down into manageable parts makes the process much easier. Understanding the system’s purpose, timeline, and scoring puts you in a strong position.
You can make strategic decisions about your participation and approach. You might be preparing for your first submission.
Or you might be looking to improve your current performance. Having the right expertise on your team can make all the difference.
At Dazzle, we understand that every company’s CDP journey is unique. Our flexible approach lets you work with pre-screened sustainability experts exactly when and how you need them. Our network includes specialists who focus on CDP disclosure.
They’re ready to support you whether you need comprehensive guidance or targeted assistance with specific challenges. Ready to get started?
Reach out to our team. We’ll connect you with the perfect expert within 48 hours.
If you are interested in learning more, reach out to our team of experts today.
