What Is the CDP and Why Is It Important?
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CDP, formerly the Carbon Disclosure Project, is a global nonprofit organization that for more than 25 years has encouraged companies, cities and governments to disclose and manage environmental impacts related to climate change, water security and deforestation. Through CDP reporting and CDP disclosures, organizations provide transparent data on their environmental performance and climate-related risks.
Investors, financial institutions, major purchasers and other stakeholders rely on CDP disclosures to assess environmental performance, risk exposure and organizational transparency. CDP scores play a significant role in business performance evaluations, investment decisions and supplier assessments, helping stakeholders compare organizations on their climate governance and environmental management. Failure to achieve a strong score may signal gaps in climate governance, data quality or overall environmental performance.
CDP environmental disclosures are most commonly completed by medium-to-large enterprises with material environmental exposure. Organizations that participate in CDP reporting and follow the CDP reporting framework improve transparency and enable stakeholders to evaluate environmental performance through CDP scoring and CDP ratings. This is particularly relevant for organisations that are:
Companies disclose environmental data on the impact their business activities following the CDP reporting framework, which provides structured guidance on reporting and ensures consistency and comparability across organizations. Key themes in CDP disclosures include climate change, water security and deforestation, reflecting the growing importance of these issues for sustainability, investor assessments and stakeholder transparency.
CDP is expected to release the detailed CDP 2026 scoring methodology in April, aligning with ESRS and other global sustainability standards. The update will include an “Ocean” module and refinements to forests and SME scoring. Organizations should review and update their CDP response strategies to ensure their disclosures align with evolving CDP sustainability expectations and continue to meet scoring and stakeholder transparency requirements.
Whether you are preparing your first CDP submission or looking to enhance your most recent report, Sphera, a CDP Accredited Solutions Provider, can guide you through the entire reporting process. Our services include CDP score improvement, helping organizations optimize disclosures, strengthen sustainability strategies and achieve better results. Contact us to set up a no-cost evaluation.
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