At YouSustain, we’re passionate about sharing knowledge on sustainability. One topic that continues to generate a lot of questions is the CDP. With growing uncertainty around reporting frameworks like the CSRD and the recent Omnibus proposal, many are asking: Is it still worth disclosing through CDP? The answer is yes, absolutely. Here’s why.

What Is the CDP?

CDP stands for the Carbon Disclosure Project. It is a non-profit organization founded in 2000 and operates an independent environmental disclosure system. This platform allows companies, cities, states, and regions to publicly report their environmental impacts and sustainability strategies.

Today, more than $ 127 Trillion in investor assets are linked to CDP disclosures. Over 31,500 companies have been requested to report through CDP, and in 2024 alone, 24,800 companies submitted their disclosures along with nearly 1,000 cities and states.

What Does CDP Ask For?

CDP focuses on three main environmental themes:

• Climate

• Forests

• Water

These used to be separate questionnaires but are now integrated into a single, consolidated format. Companies only need to respond to the categories relevant to their operations. For example, if your business has no connection (directly or indirectly through the value chain) to forest-related activities, you are not required to answer those questions.

The questionnaire includes over 400 questions, adapted by sector and company size. Financial institutions and cities receive tailored versions, and there is now a specific version for small and medium-sized enterprises (SMEs), making the process more accessible. 

At the end of the process, companies receive a score for each category. Scores range from A (the highest) to F (no response submitted). These ratings are public and offer valuable insight to investors and other stakeholders.

Why CDP Scores Matter

CDP scores can directly affect investor confidence and even influence stock market performance. Companies with strong CDP scores often experience positive market reactions when the results are published.

This scoring system also allows investors to compare businesses within the same industry. It becomes easier to assess who is leading and who is falling behind in environmental performance. For companies, this means greater visibility and the potential to access green financing or win customer trust.

CDP and CSRD: How They Connect

Even as the CSRD faces possible changes due to the Omnibus proposal, CDP has already taken steps to align its 2024 questionnaire with the CSRD requirements. This includes close alignment with the European Sustainability Reporting Standards (ESRS), TCFD, SBTi, IFRS, and TNFD.

CDP has also published a cross-reference tool showing how their questions match the ESRS disclosures. This reduces the burden of double reporting and encourages consistency between CDP submissions and your internal sustainability reporting.

Other recent updates to CDP include:

• Stronger emphasis on financial data, including risks, costs, and investment impacts

• Integration of double materiality, recognizing both financial and environmental perspectives

• More detailed governance questions, including board oversight

• Tailored questions for SMEs

• 100 percent verification now required for Scope 1 and 2 emissions, with increased focus on Scope 3

Why You Should Keep Reporting to CDP

Despite the shifting regulatory landscape, here are seven reasons to continue disclosing through CDP:

1. Stakeholder Expectations
   Even without legal mandates, investors, clients, and supply chains increasingly expect transparency on environmental performance.

2. Competitive Advantage
   CDP helps position your company as a leader by enabling direct comparisons with your industry peers.

3. Investor Visibility
   The platform gives investors clear, accessible data on how you manage climate risk, set targets, and govern your sustainability work.

4. Track Internal Progress
   Year-on-year scoring lets you measure how your company is improving over time and identify areas for further development.

5. Alignment with Existing Frameworks
   CDP integrates with widely used frameworks such as TCFD, TNFD, and the Science Based Targets initiative, streamlining your efforts.

6. Credible Data Through Verification
   Verified emissions data builds investor trust and strengthens your disclosures.

7. Risk Management
   CDP encourages early identification and analysis of climate-related risks that may affect your financial performance.

Final Thoughts

CDP remains one of the most reliable and influential platforms for environmental disclosure. It provides value regardless of the status of the CSRD and other regulatory changes. For companies seeking transparency, credibility, and a competitive edge, CDP continues to be a vital part of any sustainability strategy.

Want help navigating CDP or aligning it with your CSRD reporting?
Reach out to us at YouSustain. We're happy to support your journey.