EHS glossary>Safety term

The Definition of CDP (Carbon Disclosure Project)

CDP, formerly the Carbon Disclosure Project, is a global non-profit that runs an environmental disclosure system where companies report on climate, water and forests and receive a score.

Plain-English definition
Real-world example
CDP (Carbon Disclosure Project) definition

Definition of CDP

CDP is an international non-profit organization, originally called the Carbon Disclosure Project, that operates a global system for companies, cities and governments to disclose environmental data. Companies respond to an annual questionnaire, often at the request of investors or major customers, and receive a score that is shared with those requesters.

What CDP Covers

  • Climate change: emissions, targets, governance, risks and transition plans.
  • Water security: water use, risks and stewardship.
  • Forests: deforestation risks linked to commodities such as palm oil, soy and timber.

CDP now uses an integrated questionnaire and aligns its climate questions with IFRS S2 under the ISSB standards.

CDP Scores

Scores range from A (leadership) through B (management) and C (awareness) to D (disclosure). Companies that are asked to respond but do not are given an F.

Example of CDP

A tier-one supplier to an automotive manufacturer received a CDP supply chain request. It used its GHG Protocol inventory, energy data and climate risk register to respond and earned a B score, which the customer used in its supplier scorecard.

Frequently Asked Questions: CDP

Is responding to CDP mandatory?

No, but customers and investors may expect it, and not responding can affect supplier ratings.

What is the CDP supply chain program?

It lets large buyers request environmental data from their suppliers through CDP, helping them measure Scope 3 emissions.

Is there a fee to respond?

CDP charges an administrative fee for many responding companies. Check CDP's current fee policy.

Part of SafetyIQ's EHS glossary: plain-English definitions of workplace health and safety terms.

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