Carbon Disclosure Project Series - Part 3

Always wondered what the Carbon Disclosure Project (CDP) is all about?

Learn all about CDP with our 7- part series around its History, Mission,and how it Benefits to your company.

Part 3 - How CDP Disclosure Works [Blog & Carousel]

CDP operates through annual questionnairesthat companies voluntarily (or at a stakeholder’s request) complete via anonline portal. The process and scoring are designed to be rigorous yeteducational:

• The Questionnaire: Each year, CDP     issues standardized questionnaires on Climate Change, Water, and Forests     (now integrated). Companies are asked to report both qualitative and     quantitative information on topics such as governance and strategy for     climate issues, emissions inventory (Scopes 1, 2, 3), climate-related     risks and opportunities, water usage and risk management, deforestation     policies in their supply chain, and more​. The     questions are comprehensive and aligned with global best practices (for     instance, CDP’s climate section mirrors the TCFD’s themes of Governance,     Strategy, Risk Management, and Metrics & Targets​). Companies upload evidence and data through CDP’s online     platform during the annual disclosure window (typically Q2–Q3 each year)​.
• Scoring Methodology: Once     submitted, responses are evaluated and given a score from A to F. CDP’s     scoring system has four levels – Disclosure (D), Awareness (C), Management     (B), and Leadership (A). A company’s score reflects how far along it is on     this progression.
   
  • A is the highest      performance band, indicating robust environmental leadership,      comprehensive disclosure, and strong governance. Achieving an A is      difficult – in 2023, under 2% of companies earned an “A” on Climate​.
   
  • B (Management) indicates that the      company is implementing management plans and actions on      climate/environmental issues.
   
  • C (Awareness) – a very common      first-time score – signals the company has assessed environmental issues      but may not have advanced to widespread action yet​.
   
  • D (Disclosure) is the baseline for      companies that are just beginning to disclose and have little prior data      or strategy in place.
   
  • A fifth designation, F, is given only if a company      fails to provide sufficient information or declines to disclose at all​ (essentially a “no show”).

The scoring isbased on a points system, but CDP simplifies it into these letter bands tocommunicate performance at a glance. Notably, CDP scores are relative measuresof transparency and action, not direct grades of a company’s absolutesustainability. The goal is to encourage year-over-year improvements – movingfrom disclosure toward leadership.

• Public Scores and Feedback: Each     responding company receives a scorecard. High scorers may earn a spot on     CDP’s annual “A-List,” which is seen as a mark of environmental     leadership. (For example, only ~20 companies globally might achieve a     “double A” in Climate and Forests in a given year.) Scores of all     disclosers (except those who choose private submission) are published on     CDP’s website for investors and stakeholders to review. This transparency     creates an incentive for companies to improve. CDP also provides guidance     on where points were lost, helping companies identify gaps. Over time,     many companies use CDP as a roadmap to strengthen sustainability programs     – for instance, by introducing new governance structures or setting     emissions targets to boost future scores.

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