Reporting to CDP may seem challenging, especially for companies just beginning their ESG journey. What once was optional is now, more often than not, a condition imposed by clients and investors. In this article, we explain what CDP is, how the reporting process works, and why companies choose to seek advisory support.
Reporting to CDP – what, why, and how
What is CDP?
CDP (Carbon Disclosure Project) is an organization that promotes transparency in corporate activities related to climate, water, and land use. Each year, it invites companies to complete a questionnaire that helps assess their environmental impact and how they manage climate-related risks.
CDP is not only an ESG tool – it is also a valuable source of data for investors and analysts who rely on reporting outcomes when making financial decisions.
Why do companies report to CDP?
An increasing number of organizations choose to participate in CDP, even if not formally required to do so. Why? Because reporting to CDP brings tangible benefits:
- You enhance credibility – showing that you take ESG seriously and act transparently.
- You gain easier access to financing – CDP data can serve as leverage in negotiating terms, e.g., for loans.
- You understand climate risks – supporting long-term business resilience.
How does the process work?
The reporting process is cyclical. The questionnaire is published in spring, with submission deadlines falling in summer. Questions cover, among others, climate strategy, CO2 emissions (Scope 1, 2, and 3), reduction targets, risk management, and supplier engagement.
Scores are awarded on a scale from D to A. A higher rating means not only prestige but also greater stakeholder trust.
Challenges and difficulties
For many companies, reporting to CDP poses a significant challenge, particularly the first time. The main obstacles include lack of data – especially Scope 3 emissions (from suppliers), lack of time to collect and compile information requiring cross-departmental collaboration, and limited knowledge. The questionnaires are highly technical, demanding both knowledge of ESG terminology and an understanding of a complex scoring methodology. Additionally, many organizations lack dedicated teams or specialists responsible for environmental reporting.
Advisory support in CDP reporting – how we can help your company
An advisor can provide invaluable support, particularly if your company is reporting to CDP for the first time or lacks internal resources. External assistance is also essential when aiming to improve your score or align your CDP report with other ESG documents.
Working with our advisors allows your company to benefit from:
- Pre-reporting evaluation – assessing whether your company is prepared for reporting.
- Questionnaire completion – we help interpret CDP questions and develop response strategies.
- Data collection – we know where and how to obtain the necessary information.
- Score improvement – our expertise helps you achieve a stronger final rating.
Do you want to avoid stress and mistakes?
CDP as part of a broader ESG strategy
A CDP report is not the only reporting tool – it should complement other sustainability activities, such as Ecovadis, CSRD, or TCFD reports. A comprehensive approach is key – a well-structured reporting process allows the same data to be leveraged across multiple documents, e.g., in communication with investors and clients.
With a consistent approach, you:
- streamline processes,
- create a consistent narrative,
- stay ready for changing regulations and rising market expectations.
Step by step towards effective reporting
Whether your company has already been invited to CDP or is planning to join, early preparation is key.
The key steps include:
- Assembling a team responsible for ESG and environmental data.
- Reviewing available data and past reports.
- Establishing a timeline and milestones.
- Contacting an advisor to carry out a pre-reporting evaluation.
