CDP has evolved into one of the most important global benchmarks for corporate environmental performance. Today, it’s so much more than a questionnaire and score; it’s a strategic framework that drives transparency, operational improvement, and investor confidence.
CDP plays a pivotal role in helping organizations disclose their emissions, identify financial risk, and build accountability into their sustainability strategies. It also aligns with major global standards like ISSB (and formerly the Task Force on Climate-Related Financial Disclosures, or TCFD) as well as CSRD, giving companies a head start on increasingly mandatory climate disclosure rules.
Whether you're looking to understand what CDP reporting is or need to sharpen your corporate strategy to improve your CDP score, this guide will show you how to navigate the 2025 disclosure cycle and use CDP guidance for companies to turn compliance into competitive advantage.
We’ll cover the essentials of the reporting framework, what to expect in the 2025 disclosure cycle, and how to use CDP guidance for companies to unlock business value, reduce emissions, and meet growing expectations from investors, customers, and employees.
What is the Carbon Disclosure Project (CDP)?
CDP is a global non-profit that runs the world’s most widely used environmental disclosure system.
Since 2000, CDP has helped companies, financial institutions, cities, and governments disclose their climate change risks, emissions, and environmental impacts through standardized questionnaires, culminating in a widely recognized corporate score that benchmarks environmental performance and transparency.
In 2024 alone, over 23,000 companies reported to CDP, representing two-thirds of global market capitalization.
The CDP aims to improve transparency, drive action, and help respondents — whoever they may be — meet their sustainability goals and tackle key environmental issues like minimizing carbon emissions.
CDP aligns with key reporting frameworks like GHG Protocol, CSRD, and ISSB, making it a cornerstone of corporate sustainability reporting, though it is still considered a voluntary or optional framework.
What is CDP reporting?
CDP reporting is the process through which companies disclose quantitative and qualitative metrics as well as environmental data on climate, water, and forest-related topics. This is done via CDP’s questionnaire, which changes slightly each year to reflect new science, regulations, and stakeholder expectations.
Last year, the CDP questionnaire went through a big change to ensure ISSB alignment, but they’re not anticipated to make many changes this year.
This environmental information is then logged into the CDP Portal or submitted via API from one of CDP’s Accredited Solutions Providers.
Climate change
The climate change questionnaire includes detailed questions about greenhouse gas emissions, carbon footprint, energy use, climate risks and opportunities, and strategy alignment.
Water security
This corporate questionnaire focuses on how companies interact with water as a resource, including usage, sourcing, risk management, and impact across the supply chain.
Forests
Companies disclosing through the Forests questionnaire are asked to detail their impact on deforestation, particularly with regard to high-risk commodities like soy, palm oil, and timber.
Each questionnaire includes questions on governance, risk assessment, emissions disclosure (Scope 1, 2, and 3), targets, strategy, and value chain engagement.
Is CDP reporting mandatory?
CDP reporting is voluntary for now, but growing pressure from investors, supply chain partners, and regulators makes it de facto mandatory for many enterprises. Many companies report in response to investor requests, while others opt in as self-selected companies to stay ahead of the curve.
Responding to CDP also helps prepare for mandatory ESG disclosures under regulations like CSRD (Europe), CA SB 253 and SB 261 (US), or the IFRS Sustainability Standards (adopted via country-specific regulations globally).
Beyond sustainability reporting, many companies now use CDP scores strategically — for instance, comparing supplier scores to inform procurement decisions. This not only reduces climate risk but helps identify opportunities to cut Scope 3 emissions through greener supply chains.
CDP: The scoring and reporting process
CDP scores companies from A to F by evaluating organizations across four critical levels:
1. Sustainability disclosure
This level assesses the completeness and quality of submitted data. It focuses on whether companies have data collection systems in place to measure and report accurately.
2. Awareness
At this level, CDP evaluates whether the organization understands how its business interacts with and is exposed to environmental risks.
3. Management
Here, CDP looks for evidence of structured, effective management approaches — including goals, responsibilities, and policies aimed at environmental impact reduction.
4. Leadership
The highest scoring tier, Leadership, reflects companies that are implementing best practices, like science-based targets (SBTs), value chain engagement, and verified emissions reductions.
A high score enhances reputation and credibility. A low score or non-disclosure can erode stakeholder trust.
💡 Navigating other reporting frameworks, like CSRD? Here’s how to comply with those standards (because many of them overlap with those of CDP).
CDP disclosure cycle: What to know for 2025 and beyond
The 2025 cycle builds on the major questionnaire revamp of 2024. Fortunately, CDP has confirmed no major changes to the platform or questions this year. That gives companies a chance to refine their 2024 responses and improve their scores.
Key dates for 2025
May 21, 2025 marks the opening of the disclosure portal, and September 15, 2025 is the deadline for submissions to be scored.
Expanded themes
CDP will continue offering integrated modules that align with ESG frameworks. While biodiversity and plastics modules remain unscored for now, they’re expected to be incorporated into scoring in future cycles.
What does CDP reporting require?
CDP disclosures require detailed inputs across governance, emissions data, strategy, and value chain impacts. Here are the essentials:
Emissions data
Companies must report Scope 1 emissions (direct), Scope 2 emissions (purchased energy), and Scope 3 emissions (indirect) with as much accuracy as possible.
Climate governance
CDP asks for evidence of oversight from executive teams and boards on climate and sustainability issues.
Financial risk assessment
You’ll need to disclose the material financial impacts of climate-related risks and the scenario planning your company is adopting to mitigate them.
Environmental targets
Clear and time-bound targets are expected, ideally aligned with the Science-Based Targets initiative (SBTi).
Supply chain engagement
Companies are encouraged to explain how they influence suppliers to measure and reduce emissions.
Scenario planning and internal carbon pricing
Leadership-level scoring may require disclosure of advanced practices like scenario planning or internal carbon cost mechanisms.
Depending on the sector, disclosures may include additional detail on issues such as land use, forest commodity sourcing, or water consumption.
6 best practices to improve your CDP score
Improving your score takes strategy, internal collaboration, and iteration. Here’s how to do it well:
- Start early: Begin preparations months in advance to gather the right data, engage stakeholders, and build a complete response.
- Map your data: Understand where data lives across departments and map it to the structure of CDP’s 2024 (or 2025) questionnaire.
- Prioritize high-quality responses: Focus on delivering strong, complete responses in one or two modules before expanding your questionnaire scope.
- Engage internal and external stakeholders: Ensure your ESG, operations, procurement, legal, and finance teams are aligned and understand the stakes.
- Set science-based targets: Setting SBTi-aligned targets and publishing climate transition plans strengthens both your internal strategy and your CDP score.
- Use CDP-accredited solutions providers: They can streamline your workflow, improve data quality, and validate alignment with CDP expectations.
Why report to CDP?
Reporting to CDP isn’t just about meeting external expectations — it creates tangible internal and external value.
Stronger risk management
Companies gain greater visibility into climate-related financial and operational risks, allowing them to act earlier and smarter.
Investor and lender confidence
Transparent CDP scores can improve your attractiveness to capital providers seeking low-risk, sustainable investments.
Competitive differentiation
Your environmental leadership can become a brand advantage and help attract like-minded customers, employees, and partners.
Better data for strategy
The data you collect for CDP can feed into broader ESG dashboards, scenario models, and decision-making tools.
Supply chain engagement
Responding to CDP helps you improve stakeholder management and respond to supplier disclosure requests with clarity and consistency.
CDP and the future of environmental reporting
CDP is becoming increasingly essential as environmental transparency becomes business-critical. Because CDP aligns with other leading reporting frameworks, it makes it easier to harmonize disclosures.
With new APIs and software integrations make reporting faster, more accurate, and scalable. For private companies eager to participate, CDP now includes a path for them to disclose, increasing pressure across all markets.
Finally, as emerging topics like biodiversity, plastics, and nature-related risk disclosures become more relevant to more organizations, future questionnaires are expected to integrate metrics regarding these themes.
Choosing the right tools for CDP reporting
Managing CDP disclosures without the right technology can be time-consuming and error-prone. The right platform can make all the difference. Look for platforms that support CDP’s structure, automate emissions calculations, align with other proliferating requirements and reporting frameworks, and enable team workflows.
- Interoperability: Ensure your software integrates with systems that track emissions, supplier data, and ESG performance.
- Scenario and reduction modeling: Advanced tools will help simulate future impacts and track progress against net-zero goals and climate targets.
- Accredited support: Consider working with a CDP-accredited software provider or consultancy for enhanced credibility and efficiency.
Approach the Carbon Disclosure Project with confidence using Pulsora
What is CDP reporting if not an opportunity to transform transparency into measurable progress? For companies serious about leading on climate change, engaging with stakeholders, and building resilient, future-ready business models, CDP offers a globally recognized platform to do just that.
Pulsora is the CDP software partner purpose-built for modern sustainability management. With intelligent data automation, seamless emissions tracking across Scope 1, 2, and 3, and integrated support for CDP questionnaires, Pulsora helps enterprises move from disparate spreadsheets to real-time insight and action. Whether you're aiming for your first disclosure or targeting the CDP A List, Pulsora provides the tools and confidence to get there.
Ready to simplify your CDP reporting and elevate your ESG strategy? Schedule a demo with Pulsora today.
FAQs:
Can private companies report to CDP?
Yes. CDP has introduced a private markets disclosure platform specifically designed for private companies. This enables them to report using a tailored questionnaire and contribute to transparent environmental performance, even if they aren't publicly listed.
How much does it cost to report to CDP?
CDP charges administrative fees for disclosure. The exact amount depends on company size, location, and whether the disclosure is in response to an investor request or self-initiated. Fees typically range from a few hundred to several thousand dollars, with subsidies available for SMEs.
What happens if we miss the submission deadline?
If your company misses the September 15 scoring deadline, your disclosure won’t be scored for that cycle. While late disclosures can still be submitted for transparency, they won’t contribute to your CDP score or A List consideration.
How is CDP different from other reporting frameworks?
CDP is unique in its focus on standardized, investor-grade environmental disclosures. While it aligns closely with frameworks like TCFD, ISSB, and CSRD, CDP is a platform for gathering and benchmarking detailed environmental data at scale, with a scoring system that rewards performance and leadership.
How does CDP's scoring methodology work?
CDP uses a tiered scoring system that evaluates companies on four levels: Disclosure, Awareness, Management, and Leadership. Each level reflects increasing sophistication in environmental action. To move from one level to the next, companies must meet minimum criteria—meaning if you don’t score well on Disclosure, you won’t be evaluated for Management or Leadership. Scores are calculated based on how comprehensively companies answer questions, the quality and completeness of data, alignment with best practices like science-based targets, and evidence of value chain engagement.
Will CDP reporting become mandatory?
CDP itself is a voluntary system, but many jurisdictions are moving toward mandatory climate and sustainability reporting. CDP aligns with these emerging regulations, making it a powerful preparation tool for complying with mandatory standards like the EU’s CSRD and the ISSB guidelines.
