CDP (environmental disclosure)

CDP (environmental disclosure)
Name	CDP
Type	Non-profit organization
Founded	2000
Headquarters	London
Area served	Global
Key people	Paul Simpson
Focus	Environmental disclosure, climate change, deforestation, water security

CDP (environmental disclosure) is an international non-profit that runs a global disclosure system for companies, cities, states and regions to report environmental information. It facilitates standardized reporting on climate change, deforestation, and water security to inform investors, purchasers and policy makers, and it is widely used by global institutions and regulatory bodies. The organization interlinks corporate transparency with investor stewardship, supply chain engagement and public policy dialogues across multiple sectors.

Overview

CDP operates a voluntary disclosure platform used by thousands of respondents and by institutional stakeholders seeking environmental data, aligning with initiatives such as the Task Force on Climate-related Financial Disclosures and standards promoted by bodies like the International Organization for Standardization, United Nations Environment Programme Finance Initiative, and the World Economic Forum. Major users include asset managers such as BlackRock, Vanguard Group, and State Street Corporation, multinational purchasers like Walmart, Unilever, and McDonald's Corporation, and public actors including the European Commission, the United Nations Framework Convention on Climate Change, and national agencies. CDP’s questionnaires cover emissions, climate risks and opportunities, forest commodity sourcing, and water impacts, complementing reporting undertaken under frameworks such as the Global Reporting Initiative, Sustainability Accounting Standards Board, and the International Financial Reporting Standards Foundation.

History and Development

Founded in 2000 following investor initiatives led by groups including Institutional Shareholder Services and major financial institutions, CDP initially focused on greenhouse gas emissions disclosure among FTSE companies and later expanded globally to include thousands of companies and subnational governments. Over the 2000s and 2010s CDP scaled through partnerships with institutional investors, corporate procurement programmes and international organizations including Principles for Responsible Investment and the CDSB community, while responding to evolving policy landscapes such as actions by the European Parliament and national regulators. Leadership milestones involved collaboration with major corporate and financial actors including Royal Dutch Shell, Barclays, HSBC, and engagement with climate science from entities like the Intergovernmental Panel on Climate Change.

Reporting Framework and Methodology

CDP’s reporting uses structured questionnaires and scoring methodologies to collect quantitative and qualitative data on greenhouse gas inventories, climate risk management, mitigation targets, and water and forest impacts, designed to be compatible with reporting standards such as the Task Force on Climate-related Financial Disclosures and the Greenhouse Gas Protocol. Respondents provide data through an online portal and supporting evidence that enables scoring and benchmarking against peers including indexes like the FTSE4Good Index Series, the MSCI ESG Ratings, and the Dow Jones Sustainability Indices. Methodological components reference international taxonomies and legal benchmarks such as the Paris Agreement goals and reporting expectations shaped by regulators like the Financial Stability Board and agencies in jurisdictions including the United Kingdom, United States, and European Union.

Participation and Coverage

Participation spans large-capitalization companies listed on exchanges including the New York Stock Exchange, the London Stock Exchange, the Tokyo Stock Exchange, and the Shanghai Stock Exchange, as well as thousands of small and medium enterprises, municipal governments such as New York City, London (city), and São Paulo, and regional authorities. CDP’s data users include institutional investors representing trillions of dollars of assets, supply chain teams across sectors like automotive industry, fast-moving consumer goods, mining, and banking, and civil society organizations such as Greenpeace, World Wildlife Fund, and Carbon Disclosure Project partner entities. Corporate respondents encompass multinational firms including Apple Inc., Toyota Motor Corporation, Nestlé, BP, and Siemens.

Scoring and Disclosure Levels

CDP assigns letter grades and performance bands based on the completeness, quality and actionability of disclosures, applying tiers that recognize management practices, target setting, and demonstrated outcomes; these scores are used by investors and index providers for ESG integration alongside ratings from Moody's Investors Service, Standard & Poor's, and Morningstar. Performance recognition regimes have parallels with awards and standards such as the Science Based Targets initiative and certifications by bodies like Carbon Trust. Scoring methodologies emphasize validated emissions accounting consistent with the Greenhouse Gas Protocol scopes and with alignment to pathways described by the Intergovernmental Panel on Climate Change.

Impact and Criticisms

CDP has influenced corporate disclosure practices, investor engagement and procurement-driven environmental improvements, and its datasets underpin academic research by institutions such as Harvard University, University of Oxford, and Massachusetts Institute of Technology. Critics point to issues including voluntary participation bias, data quality and comparability concerns, potential greenwashing by disclosed entities, and the limits of disclosure without standardized assurance, concerns raised in forums involving the European Commission, International Accounting Standards Board, and NGOs like Friends of the Earth. Debates also engage market actors including BlackRock and regulatory reforms such as mandatory reporting legislations enacted in jurisdictions like the European Union and proposals from the U.S. Securities and Exchange Commission.

Governance and Funding

CDP is governed by a board and leadership team with links to major institutional stakeholders and collaborates with partners including World Resources Institute, UN Global Compact, and philanthropic funders. Its funding model combines donations, corporate sponsorships, and fees for services including data licensing provided to investors, index providers, and procurement programmes; prominent funders and partners have included foundations and institutions such as the Children's Investment Fund Foundation, Ford Foundation, and multilateral actors. Governance scrutiny and transparency are discussed in oversight contexts involving entities like the Charity Commission for England and Wales and in policy dialogues with the Organisation for Economic Co-operation and Development.

Category:Environmental reporting