The CDP (formerly the Carbon Disclosure Project) is an international non-profit organization that supports companies, cities, governments, and states in measuring, managing, and reducing their environmental impact. Established in 2000, it plays a central role in promoting environmental transparency through a standardized public disclosure system. By encouraging organizations to report their environmental data, CDP provides stakeholders (such as customers, investors, and regulators) with a clearer understanding of key issues and helps them make more informed and responsible decisions.
CDP focuses on three main areas:
Climate change, by collecting data on greenhouse gas emissions and the strategies companies implement to reduce them.
Water, by assessing how organizations manage this resource and the risks related to its scarcity or pollution.
Forests, by monitoring supply chains to limit deforestation and promote sustainable sourcing practices.
Founded in 2000, CDP has become a global benchmark for environmental reporting. Its geographical reach now spans over 90 countries, and it collaborates with thousands of companies, clients, local authorities, and financial institutions. Strategic partnerships with investors, governments, and NGOs further strengthen its influence.
CDP assigns scores ranging from D- to A to assess the environmental performance of companies and local authorities. These scores are based on three main criteria: transparency, management, and the outcomes of environmental actions taken by reporting entities.
Following the evaluation, CDP assigns a score to each company, ranging from D- to A. This rating system reflects the level of environmental commitment : an A score recognizes leadership, while a D indicates an early stage of awareness. An F is given to organizations that fail to provide sufficient data to be assessed. These scores are designed to encourage continuous environmental improvement by offering clear benchmarks and targeted recommendations.
This system encourages companies to improve their environmental performance by providing clear benchmarks and targeted recommendations.
F = Failure to provide sufficient information to CDP for evaluation purposes.
By attracting investors who prioritize ESG (Environmental, Social, and Governance) criteria, companies can gain easier access to financing. Moreover, disclosure enables organizations to identify climate related risks and sustainable growth opportunities, helping them develop more effective risk management strategies. It also contributes to corporate social responsibility (CSR) by demonstrating a company’s commitment to environmental protection and community well-being. Finally, by disclosing their environmental data, companies support the fight against climate change by aligning their strategies with the goals of the Paris Agreement and driving climate action forward.
In short, environmental disclosure is no longer just a regulatory requirement it has become a powerful strategic lever for building a more resilient, credible, and climate aligned business.
The CDP (formerly the Carbon Disclosure Project) pursues several key goals:
To motivate companies, cities, and governments to disclose their environmental data transparently, thereby strengthening accountability and building credibility with stakeholders.
To promote the reduction of greenhouse gas emissions by aligning corporate strategies with the goals of the Paris Agreement, including the setting of ambitious climate targets.
To encourage environmentally responsible practices such as sustainable water management and deforestation prevention by providing targeted recommendations and sector-specific benchmarks.
To support collective efforts to limit global warming by working with governments, investors, and NGOs to integrate environmental criteria into economic decision making.
CDP provides a structured framework for assessing the credibility of corporate climate transition plans. This framework is based on the analysis of 21 key indicators across several dimensions: governance, climate scenarios, risk and opportunity management, strategy, financial planning, emissions reduction targets, carbon accounting (Scopes 1, 2, and 3), policy engagement, and value chain involvement. These elements enable the collection of accurate data on greenhouse gas (GHG) emissions, as well as the concrete actions implemented to reduce them.
The goal is to align corporate strategies with a trajectory consistent with a +1.5°C world, in accordance with scientific recommendations and the requirements of major international standards (such as IFRS S2, ESRS, TPT, GRI, etc.). By disclosing this data transparently, companies reinforce their accountability to stakeholders and actively contribute to the fight against climate change. CDP thus plays a central role in supporting economic actors on the path toward credible, measurable decarbonization aligned with the Paris Agreement.
By assessing the impact of companies on water resources, CDP provides recommendations for more sustainable and efficient water management. Companies are required to disclose detailed information about their water use, including sources, withdrawal and discharge volumes, and to clearly identify water-related risks such as scarcity, pollution, and climate change impacts.
CDP also encourages companies to adopt Science-Based Targets for Freshwater, which enable organizations to set specific quantitative and qualitative goals tailored to local ecological limits and societal challenges. Key recommendations include reducing water withdrawals, promoting reuse and the restoration of natural flows, and collaborating with local stakeholders to effectively address water-related challenges at the watershed level.
CDP’s forest management program places a strong focus on deforestation linked to supply chains particularly those involving soy, palm oil, and timber. The program aims to protect ecosystems and promote sustainable production. By monitoring deforestation practices and assessing the sustainability of supply chains, CDP encourages companies to adopt more responsible and environmentally conscious sourcing policies.
Companies are required to disclose information about their deforestation related practices, including the volume of commodities sourced from areas at risk of deforestation. CDP also evaluates the sustainability of corporate supply chains by examining forest management practices, environmental certifications, and no deforestation commitments. Through specific recommendations, CDP supports companies in adopting sustainable production practices, including the use of certified raw materials, the implementation of no deforestation policies, and collaboration with stakeholders to protect forest ecosystems.
The CDP (formerly the Carbon Disclosure Project) provides a detailed reporting framework and tools to help companies improve their environmental transparency. This framework is aligned with international standards such as EFRAG (European Financial Reporting Advisory Group) and the ESRS E1 (European Sustainability Reporting Standards), ensuring a consistent and comparable approach to environmental data disclosure. These standards enable companies to meet reporting requirements while promoting interoperability with other frameworks.
In addition, CDP offers sector-specific benchmarks that allow companies to compare their environmental performance with peers. These benchmarks, available on the CDP website, help identify weaknesses and set ambitious goals for improvement.
CDP also provides risk assessment tools, such as its questionnaire platform, enabling companies to better understand their vulnerabilities to climate risks, water scarcity, and deforestation. These tools, accessible through the CDP website, are designed to help companies identify risks and implement strategies to reduce their environmental impact.
Finally, CDP offers practical recommendations on reducing greenhouse gas emissions, improving water management, and implementing deforestation mitigation strategies. These recommendations are based on best practices gathered from participating companies and are detailed in CDP’s comprehensive guidance, available online.
The interoperability of these tools with standards like EFRAG and ESRS E1 enables companies to meet transparency requirements effectively while supporting their transition toward a more sustainable economy.
To improve their CDP score, companies can take several concrete steps:
By following these steps, companies can not only improve their CDP score but also enhance their credibility and appeal to investors and consumers. This contributes to environmental protection and creates long-term value.
At ClimateSeed, we help companies improve their CDP scores by supporting them in building structured climate strategies, setting ambitious targets, enhancing data collection, and fostering transparency in communicating their progress. This was the path taken by LISI Group, for example, which improved its CDP score from D to A- in 2024.
Are you also looking to strengthen your climate strategy and boost your CDP score? Please contact us.
Climate change has profound environmental, social, and economic consequences. It leads to extreme weather events, threatens biodiversity, and disproportionately affects vulnerable populations. From an economic perspective, it can result in significant losses and impact various sectors.
Businesses have a major responsibility in the fight against climate change. They must adopt sustainable practices, reduce greenhouse gas emissions, and manage their environmental impacts transparently. Initiatives like CDP are essential for promoting transparency, accountability, and climate action. By disclosing their environmental data and following CDP’s recommendations, companies can contribute to protecting our planet and building a more resilient and equitable future.
Sources
https://www.ibm.com/fr-fr/topics/carbon-disclosure-project
https://help.cdp.net/en-us/knowledgebase/article/KA-01083
https://resourcegovernance.org/sites/default/files/documents/ogp_divulguer-les-informations-environnementales.pdf
https://www.linfodurable.fr/finance-durable/professionnels/cdp-effets-dannonce-mais-peu-de-plans-de-transition-credibles-28153