A Carbon Disclosure Project (CDP) survey is a questionnaire that companies can complete to disclose their environmental impacts, allowing them to be assessed and scored on their environmental performance, which is a key component of Environmental, Social, and Governance (ESG) reporting.

The surveys are conducted by the Carbon Disclosure Project, global, investor-minded and non-profit organisation focused on promoting environmental transparency. It helps environmental reporting and encourages businesses to take action on sustainability issues. 

The CDP runs the world’s only independent environmental disclosure system for companies, capital markets, cities, states and regions to manage their environmental impacts. It believes that transparency drives action, and that disclosure of emissions data helps all stakeholders to make smarter decisions.  

According to the CDP, within two years of an investor request, companies disclosing through CDP reduce their direct emissions by 7-10%. Investors are more likely to engage with, and divest from, top emitters disclosing through the project.

Its funding comes from a combination of government and philanthropic grants and a mission-complementary fee for service, and the scope of environmental impacts can include:

• carbon emissions

• water usage

• land use

• deforestation

• waste management

• climate change strategies (1)

CDP surveys collect data on a company's environmental performance and assess the management of environmental risks and opportunities. This enabling investors and stakeholders to understand a company's sustainability practices and make informed decisions. 

The CDP aligns with the Paris Agreement by helping companies track and reduce emissions and supports the United Nations Sustainable Development Goals. 

Scoring system

Companies receive a CDP score based on their responses, ranging from A (leading performance) to D (low disclosure). 

The CDP assesses levels of detail and comprehensiveness in a company's response, as well as awareness of environmental issues, management methods, and progress towards environmental stewardship. (2)

The CDP advises that the scores are snapshots that can show companies and stakeholders how far along they are on the road towards operating in line with climate goals like the 1.5-degree limit.

Scoring methodology is fully aligned with the Taskforce for Climate-Related Financial Disclosures (TCFD) and with major environmental standards, thus providing a comparable dataset across the market. This can incentivise companies to measure and manage environmental impacts, with the potential to take a leadership role in the move to low-carbon and sustainable economic futures.

A CDP score demonstrates a company’s commitment and progress towards climate action to customers, investors and other stakeholders, boosting reputation while identifying areas for improvements to environmental strategy that can reduce climate risks.

How is a CDP score calculated?

The CDP methodology assesses level of detail and comprehensiveness in a response, as well as a company’s awareness of environmental issues, its management methods and progress towards environmental stewardship.

The CDP portal opens in April every year and submissions are due in July. 

Companies are assessed across 4 consecutive levels, representing steps on the climate action journey:

1. Disclosure (D-/D score). Every question is scored for disclosure. companies are awarded roughly 1 point per data point provided. This level features both D and D- score. To score a D over a D- organisations need to have disclosed a more extensive set of information.

2. Awareness (C-/C score). The differentiator between C- and C is the level of awareness a company shows in their response. It measures the comprehensiveness of a company’s evaluation of how environmental issues intersect with its business, and how its operations affect people and ecosystems.

3. 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.

4. Leadership (A score). Businesses must show environmental leadership, disclosing action on climate change, deforestation or water security. They must demonstrate best practice in strategy and action as recognised by frameworks such as the TCFD, Accountability Framework and others.

Companies will have taken actions like:

• setting science-based targets

• creating a climate transition plan

• developing water-related risk assessment strategies,

• reporting on deforestation impact for all relevant operations, supply chains and commodities. (2)

How CDP surveys contribute to ESG reporting

Standardised framework: CDP surveys provide a widely recognised and standardised way for companies to disclose environmental data, making it easier for investors to compare companies across different sectors. 

Investor transparency: By completing CDP surveys, companies can demonstrate commitment to sustainability and environmental responsibility to potential investors.  Transparency and accountability is seen as essential for building trust with investors and stakeholders. 

Risk assessment: CDP data helps investors identify companies with significant environmental risks and opportunities, allowing them to make informed investment decisions. Every year, 700+ Capital Markets Signatories ask companies for their data through CDP’s Letter to the Board campaign.

Benchmarking: Comparing a company's CDP score to industry peers can help identify areas for improvement in environmental performance.

Attracting ESG-Focused Investment: Companies that actively participate in CDP reporting and demonstrate strong environmental performance are more likely to attract investment from ESG-focused funds. CDP’s data allows capital market players to compare companies’ environmental commitments and performance.

Meet growing demand for disclosure: Demand for climate-related disclosure has increased significantly since the Task Force on Climate-related Financial Disclosures (TCFD) released its recommendations, according to the CDP.

Improved Reputation and Brand Value: Transparency and a commitment to environmental sustainability can enhance a company's reputation and brand value. (3)

The CDP advises that disclosure data can also accelerate rapid change among supply chains. One in every 10 companies now includes climate-related requirements in their supplier contracts. Three hundred and forty of the largest global multinationals engage with suppliers to disclose quality data through CDP's Supply Chain programme. (4)

Disclosing companies can also be better prepared for regulatory demands, which could range from transition plans and deforestation to supply chain duties. Reporting key environmental data is now mandatory in many major and emerging markets.

Bibliography

1 “CDP can support your environmental journey” (Accessed March 2025) https://www.cdp.net/en

2 “What is a CDP score?” (Accessed March 2025)  https://cdn.cdp.net/cdp-production/comfy/cms/files/files/000/008/898/original/Scoring_2023_-_short_explainer.pdf

3 “Benefits of Disclosure” (Accessed March 2025) https://cdn.cdp.net/cdp-production/comfy/cms/files/files/000/006/049/original/CDP_Benefits_of_Disclosure_brochure_2022.pdf

4 “Engaging the chain: driving speed and scale” (March 2025) https://cdn.cdp.net/cdp-production/cms/reports/documents/000/006/106/original/CDP_SC_Report_2021.pdf