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Carbon Disclosure Project

What is the CDP

CDP (Carbon Disclosure Project) is an ESG questionnaire developed by the global non-profit organization of the same name. Built on the values of transparency, accountability and collaboration, CDP serves as a cornerstone of sustainable finance.

Its mission is to transform environmental data reporting into a universal language. Through its “Accelerating the Rate of Change” strategy, CDP has expanded its horizons well beyond climate change: today, it includes tracking water resources, deforestation and supply chain traceability, directly linking corporate ecological performance with the decisions of major global investors

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How it works

How CDP works

At the heart of the system is an annual reporting process based on rigorous questionnaires, which are aligned with leading international standards (such as the TCFD framework -Task Force on Climate-Related Financial Disclosures – and the GHG Protocol).

CDP’s environmental tracking is divided into 4 strategic areas:

  • Climate change: tracking Scope 1,2 and 3 emissions, internal carbon pricing and decarbonization plans
  • Water security: assessing the impact and security of water resources across the entire value chain
  • Forests: preventing deforestation by tracking key commodities (timber, paper, soy, palm oil)

Regarding the Supply Chain module, disclosure is activated only upon the explicit request of customers who are members of the programme.

How it works

The scoring system (CDP Score)

Upon completion of the assessment, CDP awards an official score ranging from “A” (Environmental Leadership) to “D-“. Receiving an “F” does not reflect poor data quality; rather, it indicates a choice not to disclose the information requested by customers or investors, a risk that few companies can afford to take today.

Target Audience

Target Audience

CDP is aimed at all organizations that want, or need, to demonstrate their environmental transparency to investors, markets and major corporate buyers:

  • Large enterprises and multinationals
  • Small and medium-sized enterprises (SMEs)
  • Cities, states and regions

BENEFITS

Partecipating in CDP allows companies to improve their scores years after year

Efficiency and environmental ROI

measuring data allows companies to identify energy and water waste, translating into reduced operational costs and up to a 7-10% reduction in direct emissions within the first two years.

A boost toward B Corp certification

the progress tracked in the questionnaire directly boosts the points needed to achieve or maintain B Corp certification

Financial assets

over 700 global financial institutions use CDP scores to guide their investment decisions and assess portfolio risks.

Supply chain

responding to the questionnaire meets the demands of major global buyers and avoids a public "F" score for failure to disclose.

Compliance

a high CDP score streamlines compliance with the CSRD (Corporate Sustainability Reporting Directive). Furthermore, the process works in synergy with the SBTi (Science Based Targets initiative).

Protection against greenwashing

climbing the ranks positions the company as a leader in the green transition, eliminating the risk of greenwashing allegations thanks to third-party validated, science-based data.

Looking to improve your score and boost your competitiveness across the supply chain?

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CDP Consulting

How we support you

Ecoloop supports you with a modular, ongoing consulting service designed to maximize your score and optimize your processes.

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FAQ

What happens if my company decides not to respond to a CDP request?

If company chooses to ignore an explicit data request from an investor or customer, it will automatically receive an “F” grade (Failure to disclose). This public score can damage the company’s reputation and risks excluding it from ESG-sensitive markets or supply chains.

What is the difference between Scope 1, Scope 2 and Scope 3 emissions?

Scope 1: direct emissions from sources owned or controlled by the company
Scope 2: indirect emissions from the generation of electricity, heat or steam purchased and consumed by the company
Scope 3: indirect emissions generated throughout the entire value chain, including business travel, employee commuting, the use of sold products and supplier/costumer logistics.

Can SMEs also participate in CDP?

Absolutely. CDP has introduced a simplified SME questionnaire specifically tailored to the needs of smaller companies. This tool allows them to meet the demands of major supply chain buyers without facing the bureaucratic complexity reserved for multinationals.

How does CDP connect to the CSRD directive and B Corp certification?

CDP is fully interoperable with major international frameworks. The data collected for the questionnaire facilitates compliance with CSRD requirements (the European sustainability reporting directive) and provides quantitative evidence that directly improves your score for B Corp certification.

When is the CDP questionnaire due?

Data submission on the official platform typically takes place every year during the summer (between July and September). Ecoloop’s consultancy is ideally structured as an ongoing annual service: in the preceding months, we handle data collection and gap analysis; in the spring, we proceed with calculations and text optimization, before guiding you through the final data entry on the CDP web platform.

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