CDP (Carbon Disclosure Project)

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 What is CDP?

The Carbon Disclosure Project (CDP) is a global non-profit organization that runs the world’s leading environmental disclosure system. It enables companies, cities, and investors to measure and manage their impact on climate change, water security, and deforestation by reporting environmental data through CDP’s standardized framework.

Why is CDP Important?

• Investor Confidence: CDP scores help investors assess climate risks in their portfolios.
• Corporate Accountability: Encourages businesses to track and reduce their carbon emissions.
• Regulatory Compliance: Aligns with frameworks like TCFD and the EU Taxonomy.
• Competitive Advantage: Companies with strong CDP scores attract sustainable investors.

CDP Reporting Process

1. Companies respond to CDP questionnaires on Climate Change, Water Security, and Forests.
2. CDP scores businesses on their environmental transparency and performance (A to D-rating).
3. Investors and stakeholders use CDP data to evaluate climate-related risks and opportunities.

Who Reports to CDP?

Over 23,000+ companies, including major corporations like Apple, Unilever, and Microsoft, disclose environmental data through CDP. Many governments and cities also participate in CDP’s framework.