CDP

Carbon Disclosure Project

Investor-grade climate, forests, and water questionnaires — A-List to D

Launched

2000

Governed by

CDP Worldwide (London, United Kingdom)

Audience

Institutional investors, purchasing companies, supply chain managers, policymakers

Mandatory

Voluntary

Report Format

Annual questionnaire response — rated A, A-, B, B-, C, D, D-, or F (non-disclosure)

Update Cycle

Annual; questionnaires updated each year; scores published December

Voluntary; but requested by 740+ institutional investors (€136T AUM) and 230+ major purchasing companies

Overview

CDP (Carbon Disclosure Project) runs the world's largest environmental disclosure platform. Over 23,000 companies disclose through CDP annually, responding to detailed questionnaires on climate change, water security, and forests. CDP scores companies on an A–D scale based on disclosure quality and performance. The A-List is the global benchmark for best-in-class environmental transparency.

Why It Matters for ESG Analysis

CDP is the primary platform through which institutional investors with €136T in AUM formally request environmental data from companies. A CDP non-disclosure or a low score is a direct red flag for ESG-focused investors. CDP's questionnaires are the most detailed and rigorous publicly available climate data collection mechanism — far more granular than most voluntary sustainability reports.

Key Requirements

Climate Change questionnaire

recommended

Governance, strategy, risks, opportunities, emissions (Scopes 1–3), targets, scenario analysis

Water Security questionnaire

recommended

Water risks, water withdrawal, water quality impacts, targets

Forests questionnaire

recommended

Deforestation risk in commodity supply chains (soy, palm oil, cattle, timber, cocoa, rubber)

Supply Chain programme

recommended

Responding to buyer requests via CDP's supply chain module

The A–F scoring system

CDP scores are based on four dimensions: Disclosure (what is reported), Awareness (understanding of risks and opportunities), Management (actions taken to manage environmental issues), and Leadership (best practices, verified data, ambitious targets). The A-List represents less than 2% of respondents — companies that demonstrate awareness of environmental risks, manage them in robust and comprehensive ways, and take leadership through transparent data, credible targets, and supply chain influence.

  • A / A-: Leadership — industry-leading practices, verified data, ambitious targets
  • B / B-: Management — taking coordinated action on climate/water/forests
  • C / C-: Awareness — understanding impacts but limited management
  • D / D-: Disclosure — participating but with limited ambition
  • F: Non-disclosure — did not respond to investor request

Data quality and investor use

CDP data is the highest-quality publicly available environmental dataset because it is collected through a standardised questionnaire with built-in validation, reviewed by CDP analysts, and used by institutional investors for active stewardship. Many ESG scoring providers use CDP data as a primary input. Companies on the CDP A-List typically receive better ESG scores from MSCI, Sustainalytics, and other major providers.

CDP and CSRD

The European Commission has confirmed that CDP disclosure substantially supports CSRD/ESRS compliance, particularly for ESRS E1 (Climate Change) and ESRS E3 (Water). Companies that fully respond to CDP's climate questionnaire have answered most of the quantitative data points required by ESRS E1. CDP is building a joint CDP-ESRS reporting pathway to reduce double-reporting burden.

Common Misconceptions

A high CDP score does not mean low emissions — a company can score A by disclosing its emissions transparently and having a credible reduction plan, even with very high absolute emissions.

CDP is not a regulatory requirement — but non-disclosure to investor requests is treated by ESG-focused investors as a negative governance signal.

CDP scores change annually — a company's score can improve or deteriorate year-on-year based on questionnaire responses and performance.

How OpenESG Scores CDP

OpenESG maps CDP scores for companies in our universe where data is publicly available. CDP scores are used as a strong positive signal for environmental data quality — a CDP A or B rating increases our confidence in the company's emissions data and environmental management practices.