What is Carbon Disclosure Project,CDP?
CDP Part 1: CDP Overview
In light of the global spotlight on climate change, countries and companies alike are developing action plans to combat its impacts.
For example, under the recent Paris agreement. The United States said its greenhouse gas emission reduction target at 26 to 28 percent below the 2005 level.
The US has pledged to accomplish its reduction goal by 2030, which is only 14 years from now.
So, as an organization, how can we contribute to this ambitious effort?
One of the first steps is measuring the greenhouse gas emissions associated with our operations.
The CDP climate change report is one of the frameworks for quantifying an organization's contribution to global greenhouse gas emissions.
And for evaluating opportunities to step up actions on climate change.
What is CDP?
CDP, which used to be known as the Carbon Disclosure Project, is a nonprofit organization
representing about 822 financial institutions.
These institutions control over 95 trillion dollars in assets and they use CDP disclosures to inform their investment decisions with the goal of minimizing climate change risk in their
This is why many companies approach CDP, not only from the corporate social responsibility angle, but also to manage their investor relationships.
There are several different CDP reporting categories including climate change, disclosures supply chain, disclosures water usage and forestry management.
Of these, the climate change report is the most frequently reported because it is the version sent to investors.
Basically, the CDP climate change report is a set of questions that companies fill out to describe their activities as they relate to greenhouse gas emissions, generation, mitigation and energy consumption.
You can think of it as a 20 questions on climate change performance of an organization.
Although it is more than just 20 questions.
These questions are designed to convey two major aspects.
One, how thoroughly does the organization disclose its greenhouse gas emissions?
And two, how well does it manage its greenhouse gas emissions?
The reporting process helps companies account for and understand their own
The report also discloses corporate actions and strategies, helping stakeholders and
investors encourage positive changes in market behavior.
How does CDP reporting work?
Companies fill out a series of questions through an online system about how they manage climate change strategies, identify risks and opportunities, and set goals for emissions reduction.
The report also asks for specific calculations of scope one, two and three emission, and comparison to last year's performance.
For instance, it will ask you to provide your total global scope one emissions in metric
tons of co2 equivalent.
As I mentioned before, you get two scores on the CVP climate change report.
One for disclosure and one for performance.
CDP's disclosure score reflects how much detail is reported in the questionnaire.
In the performance score rates what level of action the company is taking to address
climate change strategy and reduce emissions.
How do I demonstrate my company’s climate strategy?
The questions in the CVP climate change report are not only about emissions but
also about the organization's climate change strategy.
CDP wants to know who manages the company's climate strategy and how it plans to respond to future risks and opportunities.
If your company actively engages with policymakers on climate change issues, you should describe how and why.
CDP encourages the use of science-based reduction initiatives and offers suggestions for
These can be implemented into an existing strategy or use to create one.
Reporting with CDP is a great way to evaluate the most effective greenhouse gas reduction strategies and find opportunities for efficiency.
It also showcases your company's environmental leadership to investors stakeholders and your industry.
For more information about how vital metrics can help you achieve your highest CDP score,
visit us at vitalmetrics-CDP.com.
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