CDP (formerly Carbon Disclosure Project)
CDP is a global non-profit organization that operates the world's largest environmental disclosure system. It collects self-reported climate, water, and forest data from thousands of companies, cities, and subnational governments on behalf of investors and purchasers, scoring disclosures from A (leadership) to D– (minimal).
CDP's annual questionnaire has become the de facto standard for corporate climate disclosure. Over 23,000 companies reported through CDP in 2023, representing more than two-thirds of global market capitalization. Disclosure is driven by investor demand: over 740 financial institutions with $136 trillion in assets are CDP signatories requesting data from their portfolio companies.
The CDP climate questionnaire covers governance, risk management, strategy, GHG emissions (Scope 1, 2, 3), targets, verification, and carbon pricing. Companies receive a score from A (leadership, demonstrating best practice in transparency and environmental management) to D– (minimal disclosure). A company that does not respond receives an F.
CDP recently aligned its questionnaire with ISSB S2 and TCFD recommendations, and it serves as an accepted reporting channel for CSRD compliance. This convergence means a single CDP response can satisfy multiple disclosure obligations.
Achieving a high CDP score requires comprehensive, verified emissions data, science-based targets, demonstrated reduction progress, and integration of climate risk into business strategy. Carbon accounting platforms like Gravity streamline the data preparation needed for strong CDP submissions.
Frequently asked questions
What is CDP? +
CDP (formerly Carbon Disclosure Project) operates the world's largest environmental disclosure system. It collects climate, water, and forest data from over 23,000 companies on behalf of investors and purchasers, scoring responses from A (leadership) to D– (minimal).
What is a CDP score? +
CDP scores range from A (leadership, demonstrating best practice) to D– (minimal disclosure). Companies that do not respond receive an F. Scoring is based on disclosure completeness, awareness of environmental issues, management practices, and leadership in environmental action.
Is CDP reporting mandatory? +
CDP reporting is voluntary, but investor and customer pressure makes it effectively required for many large companies. Over 740 financial institutions with $136 trillion in assets are CDP signatories requesting portfolio company disclosure.
Related terms
CSRD (Corporate Sustainability Reporting Directive)
The Corporate Sustainability Reporting Directive (CSRD) is the European Union's mandatory sustainability reporting law. It requires companies operating in the EU above certain thresholds to disclose environmental, social, and governance (ESG) information according to the European Sustainability Reporting Standards (ESRS), with third-party assurance.
SBTi (Science Based Targets initiative)
The Science Based Targets initiative (SBTi) is a partnership between CDP, WRI, the UN Global Compact, and WWF that defines and validates corporate greenhouse gas reduction targets consistent with the Paris Agreement goal of limiting warming to 1.5°C above pre-industrial levels.
Carbon Accounting
Carbon accounting is the systematic process of measuring, recording, and reporting the greenhouse gas (GHG) emissions produced by an organization, product, or activity. It follows standardized methodologies — most commonly the GHG Protocol — to quantify emissions across Scope 1 (direct), Scope 2 (purchased energy), and Scope 3 (value chain) categories, producing an auditable inventory that underpins disclosure, reduction planning, and regulatory compliance.
Scope 3 Emissions
Scope 3 emissions are all indirect greenhouse gas emissions that occur in an organization's value chain — both upstream (suppliers, purchased goods, business travel, employee commuting) and downstream (product use, end-of-life treatment, investments). Scope 3 typically represents 70–90% of a company's total carbon footprint.
TCFD (Task Force on Climate-related Financial Disclosures)
TCFD is a framework developed by the Financial Stability Board for disclosing climate-related financial risks and opportunities. It organizes recommendations around four pillars: governance, strategy, risk management, and metrics and targets. Though the TCFD disbanded in 2023, its framework lives on through ISSB S2 and CSRD/ESRS.