Companies that adopt a more transparent approach to reporting their environmental data and energy transition plans need to look beyond mere compliance. They must position themselves as leaders in their sector. Today, being recognized as a company committed to the environment is no longer just a question of brand value or attracting investors. It's also a concrete indicator of your influence and commitment to your entire value chain.
This is where the CDP score comes into its own. Not only have companies with an A-level CDP score, on average, outperformed others by 6% in stock market gains over the last decade, but the CDP score also enables organizations to better anticipate, make strategic decisions and take concrete action to accelerate their environmental transition.
But what is the CDP score? The CDP (formerly known as the Carbon Disclosure Project) is a non-profit organization that encourages companies to publish their environmental data by answering a questionnaire on three themes: climate, water security and forest management. On the basis of these responses, the CDP assigns a Level of Engagement Score, ranging from A to F, which assesses the transparency and quality of a company's environmental actions.
Each year, the CDP sends a questionnaire to companies, enabling them to disclose their environmental data. The responses are then evaluated by the CDP, which awards each company a score ranging from A to D-.
The CDP divides its score into four categories. These rating categories are as follows:
|
The Score |
What it means |
|
A/ A- |
Outstanding environmental performance, transparent communication and proactive impact management |
|
B/ B- |
Satisfactory reporting and management, but room for improvement |
|
C/ C- |
Major gaps in reporting and management, but some initiatives are taken |
|
D/ D- |
|
|
F |
Lack of sufficient information to evaluate |
From 2025 onwards, a single questionnaire is used for the 3 themes of climate, water and forests. But each theme is given a separate score. Within the questionnaire level, there are 4 levels:
|
Level |
What it means |
|
Disclosure |
Complete data disclosure |
|
Awareness |
Understanding environmental risks and impacts. |
|
Management |
Implementation of environmental actions or policies |
|
Leadership |
Adoption of industry best practices and capacity for innovation. |
The DALM (Disclosure-Awareness-Management-Leadership) framework forms the essential basis of the CDP rating system. It is used to assess the level of maturity of a company's environmental practices. The framework operates on a progressive basis: a company must first fully satisfy the criteria of one level before it can move up to the next. For example, to move from Awareness (C) to Management (B), criteria such as the definition of objectives and the risk management process will be taken into account.
The categories help to organize the CDP questionnaire and scoring. They correspond to different themes.
Governance: Board and management oversight, incentives for environmental action
Corporate strategy: Integrating environmental issues into planning and financial impacts.
Risk and opportunity management: Identifying, assessing and responding to environmental risks and opportunities
Objectives & performance: Environmental objectives, progress monitoring, and data verification.
Supply chain and traceability: Supplier commitments, raw material traceability, certifications.
Emissions/ Impact: GHG emissions, volumes of forest raw materials, water withdrawals and discharges
Policies and commitments: Zero deforestation commitments, water or climate policies, certifications used
Value chain impact: Upstream/downstream risks, financed emissions (for financial institutions)
Verification and transparency: Third-party data assurance, public reporting
The questionnaire is divided into 13 modules. These modules form the basis of CDP scoring. Each module is linked to one of the above-mentioned categories. For example, module 4 corresponds to the Governance category.
For 2025, the CDP has made a number of adjustments to its rating methodology. The questionnaire retains the simplified structure introduced in 2024. Climate, water security and forests continue to be assessed separately, as before, while the plastics and biodiversity modules remain unrated. The SME questionnaire has undergone minor modifications, mainly to improve clarity and lighten the response burden.
Data reporting helps to take positive action for the environment, and to make decisions that support their business strategies and objectives. Companies also know how much the market depends on data disclosure today. That's why companies ask CDP to collect data for them.
A good CDP score improves company's public image and reputation. It reinforces credibility with stakeholders and investors. The CDP A rating reflects exemplary transparency and responsibility. Companies that obtain this rating use it to reinforce their climate action. It's easier to secure investments when you hold a certificate of high transparency: which the CDP A rating represents.
Organizations can use data reporting as a strategic lever to steer their transition to net-zero. The CDP database represents a valuable source of market intelligence, widely exploited by industry leaders. It enables companies to better understand their needs, as well as the risks to which they are exposed. According to CDP data, companies have already saved over $13 billion by taking action on their scope 3 emissions. What's more, they identify a potential of $165 billion in future savings, at an estimated cost of just $94 billion (according to the 2024 report).
Achieving a high CDP score not only reinforces an organization's commitment to transparency and sustainability; it also sends a strong signal to investors, customers and stakeholders. The CDP questionnaire is structured around three main themes: climate, water security and forests. This segmentation enables a targeted, in-depth assessment of an organisation's environmental impacts and dependencies.
Environmental data reporting helps organisations to make informed decisions, align their actions with their business objectives, and adopt positive measures for the environment. In a context where transparency has become a strong market expectation, companies recognize the strategic value of CDP and actively solicit its data collection. A good score, in particular an A rating, enhances a company's reputation, reinforces its credibility with stakeholders and facilitates access to sustainable financing. This recognition thus becomes an asset for reinforcing climate action and securing investments.
A strong CDP score thus becomes an indicator of environmental maturity and a decisive competitive advantage in a world where sustainability is at the heart of strategic decisions.
ClimateSeed is a company committed to climate action, helping organizations take action both within their value chain and beyond.
Supported by AXA Investment Managers' impact fund, it is the trusted partner of organizations wishing to contribute to global carbon neutrality.
We also help companies prepare their CDP reports. Find out more about our service.
Since 2018, ClimateSeed has supported more than 200 organizations in their decarbonization and continues its international development to maximize its impact.
Do not hesitate to contact us to explore how ClimateSeed can help you implement specific strategies for your company.