What is CDP? Reporting Framework, Scores, and Role in Sustainability

What is CDP & Why Does it Matter?

CDP is a non-profit organisation based in several countries and dedicated to assisting businesses, cities, and governments to quantify, manage, and minimise their environmental impact. 

CDP was founded in 2000 and collaborates with more than 700 financial institutions with assets valued at over $142 trillion and over 300 significant corporate buyers to gather environmental data using a standardised disclosure approach.

It is based on four main themes of the environment:

• Climate change, 
• Water security,
• Forests, and
• Biodiversity & Plastics (additional themes).

Through its effort to get organisations to disclose their greenhouse gas emissions, climate risks, governance arrangements, and value chain effects, CDP offers investors and other interested parties the transparency they require in making informed decisions on sustainability performance and environmental risk management.

What Drives Companies to Get a CDP Score?

There are several compelling reasons:

• Many of the largest financial institutions and asset managers are now demanding CDP information as part of their due diligence.

• Investment funds often insist that a minimum of a B or higher score on the CDP is a requirement before inclusion in their portfolio. 

• Supply chain requirements have also increased; after large companies such as Nike, Airbus, Bank of America, and Microsoft requested their suppliers provide information via CDP.

Moreover, there is an incentive for companies to be ready to meet new regulatory requirements.

CDP and Its Relevance To Sustainability

CDP has taken the centre stage of global sustainability initiatives since it has gone hand-in-hand with significant international frameworks and regulatory tools. The platform is entirely in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD); it presents companies disclosing via CDP with the task of governance, strategy, risk management, and metrics that are comprehensible to financial markets.

In the case of Indian companies, the CDP reporting aligns with the Business Responsibility and Sustainability Reporting (BRSR) framework required by SEBI, helping ensure regulations are complied with. CDP is also highly interoperable with:

• European Sustainability Reporting Standards (ESRS), 
• IFRS S2, and
• Progressively converging with GRI and SASB models. 

Companies disclosing comprehensive environmental data through CDP can leverage that single submission across multiple regulatory requirements, reducing complexity and ensuring consistency.

Understanding what CDP sustainability means, recognising it as a comprehensive approach that goes beyond carbon accounting alone. With the growing adoption of mandatory sustainability reporting around the world, CDP makes organisations leaders in transparency and anticipates future regulatory timelines. 

CDP Reporting Process and Framework

The CDP disclosure process follows a structured annual cycle that begins with data collection and culminates in a third-party assessment. 

In 2026, the expected timeline includes:

• Questionnaire release in mid-April, in the week of April 20
• Disclosure window opening in mid-June, in the week of June 15
• Closing in mid-September, in the week of September 14, for companies seeking a scored response, and 
• And mid-October, in the week of October 26, for unscored responses.

Disclosure requests are made by investors, customers, or supply chain partners to companies via the online CDP platform, but organisations have the option of voluntary disclosure. After the invitation, companies fill the CDP integrated online questionnaire that addresses climate change, forests, water security, and new modules on biodiversity and plastics.

The questionnaire is designed depending on the size of the company, industry, and the impact on the environment.

The framework mandates organisations to provide specific information in five major areas:

• Governance structures and board oversight
• Identification and assessment of climate-related risks and opportunities
• CDP carbon emissions data (Scope 1, 2, and 3)
• Environmental targets and transition plans
• Value chain engagement and supplier management

The extensive strategy makes sure that the CDP reporting framework captures not only what is emitted by a company, but also the manner in which the company governs, strategises, and addresses environmental issues. 

CDP Scores and What They Indicate

CDP scores operate on a four-tier maturity model:

Leadership scores (A- and A)

They represent the highest achievement; companies demonstrate science-based targets, transparent supply chains, and industry-leading environmental governance practices.

Management scores (B- and B)

Demonstrate that companies actively implement strategies to minimise environmental impact, such as setting emissions reduction targets and investing in renewable energy. 

Awareness scores (C- and C)

Indicate that organisations understand environmental risks and their business relevance, but haven't yet implemented comprehensive management measures. 

Disclosure scores (D- and D)

Evaluate the completeness of environmental data reported; a company at this level may measure emissions but take limited action.

A good CDP score starts at B- and higher, signalling credible environmental action to investors and stakeholders.

CDP Sustainability and ESG Alignment

CDP has evolved to function as a cornerstone of integrated ESG and sustainability strategy rather than a standalone climate tool. The platform's 2024 integration combined climate change, forests, and water security into a single questionnaire while systematically incorporating biodiversity and plastics disclosures.

This integrated approach naturally aligns with ESG reporting frameworks because CDP's requirements mirror what major ESG standards demand. Companies responding to CDP questionnaires collect and organise data that simultaneously satisfies:

• TCFD recommendations, 
• BRSR disclosure requirements,
• CSRD expectations. 

Moreover, the use of CDP scores is gaining momentum in the methodology of ESG rating agencies. This connection implies that the better the performance of CDP, the better the overall rating of ESG and investor opinion.

CDP Reports and How Stakeholders Use Them?

Financial institutions use CDP data to assess climate risk, manage portfolio risks, and determine long-term investment opportunities. 

For stakeholders requesting disclosure, CDP provides standardised, third-party assessed environmental data that replaces the need for multiple proprietary questionnaires, enabling more efficient resource allocation.

How Oren Can Help?

To organisations aiming at simplifying their CDP disclosure process and aligning CDP reporting with larger sustainability and ESG frameworks, Oren provides an integrated platform that:

• Centralises the collection of environmental data, 
• Streamlines reporting processes, and 
• Ensures alignment across CDP, BRSR, TCFD, and other critical frameworks. 

Oren has features that support enterprises and manufacturing firms with large supply chains to manage all the reporting overhead, while improving the quality of data so that your team can concentrate on producing real sustainability impact.

Frequently Asked Questions (FAQs)

Q1. What is the CDP?

The CDP is a global non-profit that collects, evaluates, and scores environmental data on climate, water, forests, and related impacts.

Q2. What is CDP disclosure, and who needs to report it?

CDP disclosure refers to the reporting of environmental information through the CDP platform, normally in response to requests from investors or customers, but organisations can also report it voluntarily.

Q3. Is CDP reporting mandatory or voluntary?

CDP reporting is optional, although investor pressure and regulation, such as BRSR, CSRD, and climate laws, render it practically compulsory for most businesses.

Q4. What data is included in a CDP disclosure report?

It contains governance, climate risks and opportunities, Scope 1-3 emissions, targets and transition plans, and value chain impacts with sector-specific requirements.

Q5. How is CDP different from other sustainability frameworks?

The CDP actively gathers and grades environmental information, which provides global comparability by standard, unlike guidance models like GRI, TCFD, or SASB.

Q6. What does a good CDP score indicate?

Scores from B- upward reflect active environmental management, while A or A- signals leadership, science-based targets, and strong governance practices.

Q7. How does CDP reporting support sustainability goals?

CDP improves transparency, drives emissions reductions, supports credible climate strategies, and incentivises continuous improvement through benchmarking and scoring.

Q8. What's the deadline for submission?

For 2026, CDP disclosures open in mid-June, scored submissions close in mid-September, and final unscored submissions close in late October.