Investor - CDP (2024)

FAQs

How do you respond to CDP? ›

If your organization is being requested to respond, CDP will notify you by email and will send you your access link to your company's dashboard and the ORS. You will need to register for a CDP account to access the system. If you already have an account for our website, you can sign in using your existing password.

 The CDP climate change (investor) questionnaire involves 15 questions regarding climate change, including a sign off section.

CDP – the global environmental disclosure nonprofit – has scored over 21,000 companies based on information reported through its climate change, deforestation and water security questionnaires. Just under 400 (2%) of these have been named on its 2023 A List for disclosing actionable, high quality environmental data.

Companies that are requested to disclose their data and fail to do so, or fail to provide sufficient information to CDP to be evaluated, receive an F score.

Management (B-/B score)

Companies that score a B have addressed the environmental impacts of their business and ensure good environmental management. A B-score indicates that a company is showing some evidence of managing its environmental impact but is not undertaking actions that mark it out as a leader in its field.

Benefits of disclosure

There are tangible business benefits to be gained from responding to your stakeholder's requests for disclosure: Protect and improve your company's reputation – build trust through transparency and respond to rising environmental concern among the public.

For all CDP corporate questionnaires, there are two versions: full and minimum. The full version contains all questions relevant to a company, including sector-specific questions and data points. The minimum version contains fewer of those questions, and no sector-specific questions or data points.

CDP focuses on environmental disclosures while EcoVadis also includes disclosures on Labor & Human Rights and Ethics.

Investors use our data on climate change, deforestation and water security to inform decision making, engage with companies, reduce risks and identify opportunities.

A CDP score reflects the level of transparency, action and progress an organisation is taking to reduce their GHG emissions, and is scored from A (the highest score) to D- (the lowest score).

How successful is CDP? ›

Investing in a CDP not only helps companies to achieve their goals and find stability during unstable times, but it pays off quickly. CDPs deliver value and return on the investment quickly. Three-quarters of respondents realized value in their CDP in less than one year and 89% within the first 18 months.

A CDP allows a business to tailor its communications and build lasting relationships with customers that improve retention rates and lower churn. CDPs are also a great way to reduce customer acquisition costs in favor of higher retention rates.

All of the questions are scored for the disclosure level. Some of the questions have no awareness, management or leadership level scoring associated with them. The CDP score is based solely on activities and positions disclosed in the CDP response, which are necessarily limited in nature.

The highest possible value of an F-score is 1.0, indicating perfect precision and recall, and the lowest possible value is 0, if either precision or recall are zero.

A customer data platform (CDP) is packaged software that creates a comprehensive customer database accessible by other systems to analyze, track, and manage customer interactions.

Carbon Disclosure Project - Wikipedia.

While many emerging regulatory disclosures are mandatory, like the EU's CSRD and SFDR, CDP's requirements are strictly voluntary. Many governmental reporting requirements focus on financial or non-financial disclosure requirements almost exclusively.

CDPs allows data to be democratized so it can be used across the entire organization (marketing, sales, customer service, support, etc.) A CDP allows a business to tailor its communications and build lasting relationships with customers that improve retention rates and lower churn.