Carbon Disclosure Project (CDP)

The CDP (formerly the Carbon Disclosure Project) is a global environmental disclosure system that companies, cities, states and regions use to measure, manage and report their environmental impact. It has become one of the most widely used tools for disclosing carbon footprint data and wider environmental performance. Below we explain what the CDP is, how it works and why it matters.

What is the CDP?

Founded in 2000, the CDP is an international non-profit organisation that operates a global environmental disclosure system on behalf of investors, purchasers and policymakers. Its aim is to help organisations measure and manage their environmental impact across three core themes:

• Climate change
• Water security
• Deforestation

Through standardised questionnaires, the CDP collects detailed information on greenhouse gas emissions, climate risks and corporate sustainability strategies. Its data is used by investors, governments and other stakeholders to assess environmental performance. In 2024 around 25,000 organisations, representing roughly two thirds of global market capitalisation, disclosed through the CDP, and more than 22,000 companies disclosed in 2025, reflecting its role as a de facto standard for environmental disclosure.

How does the CDP disclosure system work?

Since 2024 the CDP has used a single, integrated questionnaire that brings together climate change, water security, forests, biodiversity and plastics, replacing the separate surveys used previously. The corporate questionnaire is now aligned with IFRS S2, the climate disclosure standard issued by the ISSB, so that companies report governance, strategy, risk management and metrics in a format investors already recognise.

Climate change

This part of the questionnaire covers GHG emissions across Scope 1, Scope 2 and Scope 3, climate-related risks and opportunities, and emission reduction targets and transition plans. Companies report both quantitative and qualitative data.

Water security

The water module looks at how organisations manage water-related risks, such as scarcity or pollution, and how they promote more sustainable water use across their operations and supply chains.

Deforestation

This section focuses on supply chains linked to forest-risk commodities such as soy, palm oil, timber and cattle, assessing the policies and practices companies use to prevent deforestation.

Once companies submit their responses, the CDP scores them against criteria such as transparency, data quality and progress towards environmental goals. Scores range from A (leadership) down to D- (disclosure), with a separate score for each scored theme, allowing companies to benchmark their performance against peers.

Benefits of disclosing through the CDP

Transparency and reputation

Disclosing environmental data through the CDP signals a credible commitment to sustainability and can strengthen a company's standing with investors, customers and other stakeholders.

Identifying risks and opportunities

The process of gathering and analysing data helps companies identify climate and resource risks, such as rising energy costs or water scarcity, and uncover opportunities for innovation, cost reduction and decarbonisation.

Access to capital

Investors increasingly favour companies with strong, transparent environmental performance. Disclosing through the CDP can support access to finance, as it shows that a company is managing climate risk and aligning with sustainability goals.

Preparing for regulation

As environmental reporting requirements grow, through frameworks such as Spain's Climate Change and Energy Transition Law 7/2021 and the EU's sustainability reporting rules, the CDP helps companies build the data and processes they will need for compliance.

The CDP's role in climate action

Beyond the benefits for individual companies, the CDP plays an important role in global climate action. By promoting transparency, comparability and accountability, it encourages organisations to adopt more sustainable practices and to set and track meaningful emission reduction targets. Its alignment with IFRS S2 also helps harmonise environmental disclosure with the broader sustainability reporting landscape.

The CDP and Manglai

Preparing a CDP response starts with a robust emissions inventory and good environmental data. At Manglai we help companies measure their carbon footprint, organise their environmental data and prepare their sustainability reporting, including disclosures aligned with frameworks such as the CDP and IFRS S2. Discover how Manglai can help you.