Takeaways
- CDP is a global framework for organisations to measure and disclose environmental impacts.
- Reporting through CDP supports transparency, risk management and stakeholder trust.
- CDP scoring allows companies to benchmark performance and drive continuous improvement.
- SBTi provides a science-based approach to setting credible emissions reduction targets.
- Using CDP and SBTi together links target-setting with transparent progress reporting and real climate action.
Environmental responsibility is now a strategic business priority. Investors are assessing climate resilience, customers are looking for values-aligned brands, and regulatory expectations for transparency are growing. The Carbon Disclosure Project (CDP) is one of the most widely used systems for organisations to measure, disclose and improve their environmental impact. Participating in CDP helps companies strengthen credibility, reduce risks and create long-term value.
Table of Contents
What Is the Carbon Disclosure Project (CDP)?
CDP is a global non-profit organisation that operates the largest corporate environmental disclosure platform. Each year, CDP collects and evaluates environmental information from companies, cities and public bodies.
Organisations report on three core areas:
| CDP Theme | Focus Area |
|---|---|
| Climate Change | Greenhouse gas emissions, climate-related risks, governance and reduction strategies |
| Water Security | Water usage, water stress exposure, wastewater and resilience planning |
| Forests | Exposure to deforestation risks in supply chains and sourcing of commodities such as palm oil, timber, soy and cattle products |
CDP allows stakeholders to understand how organisations manage environmental risks and opportunities, and how they are adapting to a low-carbon and resource-resilient economy.
CDP’s Purpose and Values
CDP is built on four principles:
- Transparency: Sharing accurate and complete environmental information.
- Accountability: Demonstrating responsibility for environmental performance.
- Knowledge-building: Collecting data to improve understanding of climate and resource risks.
- Continuous improvement: Encouraging action and performance enhancement year by year.
These principles support better environmental governance and stronger organisational decision-making.
How the CDP Process Works
1. Invitation or Voluntary Participation
Organisations may be requested to disclose by investors or customers. Others choose to report voluntarily to demonstrate leadership.
2. Completing the Questionnaires
Companies complete one or more questionnaires based on their environmental impacts. Sectors with higher environmental footprints receive more detailed or sector-specific questions.
3. Submission and Scoring
Responses are submitted through CDP’s online portal. CDP reviews the information and assigns a score from A to F.
4. Data Analysis and Benchmarking
CDP data contributes to global research and corporate benchmarking. Companies use their score to evaluate strengths and areas for improvement.
What Information is Disclosed in CDP Reporting
Disclosures may include:
- Greenhouse gas emissions across Scope 1, Scope 2 and relevant Scope 3 categories
- Climate-related financial risks and scenario planning
- Water withdrawals, wastewater discharge and water stress exposure
- Supply chain exposure to deforestation-linked commodities such as palm oil or timber
This ensures environmental data is linked to business decisions and strategic planning.
Why CDP Reporting Benefits Businesses
- Strengthens Stakeholder Trust
Transparent reporting improves credibility with investors, clients, regulators and supply chain partners. - Improves Climate and Resource Risk Management
CDP encourages organisations to identify environmental risks early and plan mitigation strategies. - Enhances Performance Through Benchmarking
CDP scoring allows organisations to compare against peers and track improvement over time. - Supports Regulatory and Market Alignment
CDP disclosure prepares organisations for evolving sustainability regulations and procurement requirements.
CDP Scoring Overview
| Score | Meaning |
|---|---|
| D / D- | Early stage disclosure and data collection |
| C | Environmental awareness and risk understanding |
| B | Active management and implementation of reduction strategies |
| A | Leadership in transparency and action |
Progress is built through structured annual improvement.
Costs, Access and Support Tools
CDP provides guidance materials, scoring methodologies and reporting frameworks. Some CDP submissions are free while others require fees depending on company size, region and reporting category.
Companies can choose to report voluntarily and still receive a score, which is an effective way to build readiness.
A Practical Roadmap to CDP Reporting
- Register and determine applicable questionnaires
- Gather emissions, water and supply chain data
- Complete the CDP online disclosure form
- Review CDP scoring feedback
- Improve governance, data systems and reduction strategies
- Report annually and communicate progress
This creates a cycle of continuous improvement.
Introducing the Science Based Targets initiative (SBTi)
The Science Based Targets initiative (SBTi) provides companies with a methodology to set greenhouse gas reduction targets that align with climate science and the Paris Agreement temperature goals. SBTi ensures climate targets are credible and measurable.
SBTi is founded by CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).
How CDP and SBTi Complement Each Other
| SBTi Role | CDP Role |
|---|---|
| Defines how much and how quickly emissions should be reduced based on science | Provides the platform for reporting emissions and progress |
| Validates emissions reduction targets | Scores transparency and climate action performance |
| Sets forward-looking ambition | Measures and communicates actual impact |
SBTi focuses on target setting and direction. CDP focuses on transparency and progress tracking. Together, they ensure both credibility and accountability.
Business Benefits of Using CDP and SBTi Together
- Demonstrates environmental commitment backed by scientific evidence
- Improves climate governance, planning and decision-making
- Enhances investor confidence and sustainability ratings
- Supports long-term reduction of carbon risk exposure
- Lays the foundation for improved CDP scores over time
CDP provides a structured approach for organisations to measure, manage and improve their environmental impact, helping companies demonstrate accountability, strengthen resilience and build competitive advantage. It is not simply a reporting exercise, but a strategic tool that supports informed decision-making and long-term value creation. When organisations choose to set science-aligned emissions reduction targets through the Science Based Targets initiative (SBTi), CDP then becomes the platform to transparently report progress and reinforce the credibility of those commitments.
At Bernard Business Consulting, we support organisations in Malaysia and the region to design and implement science-aligned climate targets. This includes greenhouse gas accounting, emissions reduction planning and sustainability reporting to help businesses prepare for and progress toward SBTi commitments. Our practical guidance, tools and capacity-building programmes enable companies to integrate climate objectives into strategy, governance and day-to-day operations with clarity and confidence.
Contact us if your organisation is exploring or planning to adopt the SBTi, you may reach out to us to discuss the next steps.
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