← Back to Teaching Sustainability
Ellie Thorson
August 29, 2025
As climate concerns rise and sustainability becomes central to how businesses operate, companies face increasing pressure to demonstrate their environmental accountability. Regulators, investors, customers, and corporate partners all expect transparency about environmental impact and management strategies.
Founded in 2000, the Carbon Disclosure Project (CDP) is a global platform enabling organizations to measure and share their environmental performance. The platform offers annual questionnaires and scoring systems that provide comparable ratings for corporate environmental disclosure and management effectiveness.
CDP reporting is technically voluntary but functionally essential. It represents "the most widely used sustainability and carbon disclosure system in the world." Increasingly, large corporations require suppliers to disclose through CDP as part of procurement and sustainability requirements.
CDP operates across more than 80 countries in both public and private sectors, applying to companies of all sizes. "Nearly 25,000 organizations disclosed through CDP in 2023 alone." Stakeholders use this data differently:
The process follows four steps:
1. Register - Create an account and register with CDP
2. Report - Complete a detailed questionnaire covering five themes:
CDP's questionnaire aligns with major frameworks including GHG Protocol, IFRS S2, ESRS, TNFD, TCFD, GRI, and others, enabling companies to meet multiple requirements simultaneously.
3. Verify - CDP may require third-party or internal verification of submitted data
4. Receive a Score - Organizations receive ratings from D- to A, with A List recognition for leadership. Non-disclosing entities receive an F rating.
CDP is emphasizing "granular, comprehensive data on indirect emissions" and strengthening requirements around Scope 3 emissions and value chain transparency. This shift acknowledges that indirect emissions significantly impact overall carbon footprints.
Transparency expectations continue growing. In 2023, "companies reporting through CDP identified $16 trillion in potential climate-related opportunities." Participation enhances credibility, strengthens investor relationships, and opens partnership doors.
CDP represents one of several major sustainability frameworks businesses must understand in 2025. As transparency expectations increase, navigating these frameworks becomes essential for meeting stakeholder demands, reducing risk, and identifying opportunities.