Carbon Disclosure Project (CDP) Reporting 2024..... All you need to know!

CDP stands for the Carbon Disclosure Project and they are a not-for-profit charity that is in charge of the global reporting disclosure for investors, companies, and regions to measure and publicly acknowledge their environmental impacts. CDP is internationally considered to be the “gold standard of environmental reporting” and their data is widely used to take environmental action and track progress around the world.?

In the realm of environmental accountability, few entities hold as much weight as the Carbon Disclosure Project (CDP). As a leading not-for-profit charity, CDP spearheads global reporting disclosure efforts, empowering investors, companies, and regions to measure and transparently acknowledge their environmental impacts. Their meticulously curated data serves as a catalyst for environmental action, guiding stakeholders in their quest to mitigate climate change and foster sustainable practices.

Let’s look at the global numbers:

• A record 23,200 companies disclosed through CDP in 2023, a 24% increase from the 18,700 companies that disclosed in 2022. However, more than 38,000 companies, worth at least US$26.6 trillion in market capitalization, failed to respond to the request for environmental information from their investors and clients.
• In 2023, 10 companies awarded as “A-Rating” across all three thematic questionnaires. 346 companies made the 2023 Climate Change "A" List. 30 companies made the 2023 Forests "A" List. 101 companies made the 2023 Water Security "A" List.
• Supply chain emissions account for 11.4x more than a company’s direct emissions. Suppliers reported that engagement from CDP Supply Chain members drove 70 million tCO2e of emissions reduction initiatives. 39% companies that disclose on climate change engaged their suppliers in 2022. While just 41% of companies reported emissions for at least one Scope 3 category.

By embracing CDP certification , organisations not only demonstrate their commitment to transparency but also gain access to a wealth of resources and insights that can inform strategic decision-making.

From attracting responsible investors to fostering partnerships with like-minded entities, CDP certification opens doors to a multitude of opportunities. Moreover, it establishes credibility and trust among stakeholders, positioning certified organisations as leaders in sustainability and responsible corporate citizenship.

In today's socially conscious landscape, the value of environmental accountability cannot be overstated. Through collaboration with CDP , companies can not only measure their environmental footprint but also leverage data-driven insights to chart a course towards a more sustainable future.

Demystifying CDP Reporting: A Primer for Environmental Accountability

Understanding the nuances of CDP reporting is pivotal for organisations striving to navigate the landscape of environmental accountability.

Here are some key insights to illuminate the journey:

1. Foundation and Evolution: CDP traces its origins back to 2000, building upon the framework laid out by the Global Reporting Initiative (GRI) . The inaugural submission occurred in 2002, marking the inception of a transformative journey towards transparent environmental reporting.
2. Tripartite Focus: CDP reporting encapsulates three fundamental aspects: climate change, water management, and deforestation. These pillars form the bedrock of comprehensive environmental disclosure, enabling organizations to holistically assess and address their impact on the planet.
3. Global Engagement: In 2021, CDP witnessed a significant milestone with 64% of global capitalization actively disclosing their data. This equated to over 13,000 entities spanning companies, cities, states, and regions. Such widespread participation underscores the growing recognition of CDP as the preeminent platform for environmental disclosure.?

Learn more about CDP reporting , what CDP scores indicate, and how you can you consider ESG domain experts of Growlity as your handholding partner for your CDP submission for 2024, please reach out to us at [email protected].

Navigating CDP Reporting: A Roadmap for Environmental Transparency

Curious about how CDP reporting operates?

Here's a breakdown to guide your journey:

• Engagement Timeline: In 2024, the CDP platform opens for reporting in April 2024, with the response window spanning from early June to September 2024. This structured timeline provides ample opportunity for companies, investors, and government entities to engage with the platform and submit their reports.

• Reporting Process: To kickstart the reporting process, entities can sign up for an account with CDP, activate the relevant questionnaires, and proceed to submit their responses. This user-friendly interface streamlines the reporting journey, facilitating seamless interaction with the platform.
• Data Requirements: CDP reporting necessitates both qualitative and quantitative data. Precise data, meticulously calculated by ESG domain experts , plays a pivotal role in measuring and tracking progress over time. This commitment to accuracy not only enhances the credibility of the reporting but also provides clarity to stakeholders seeking actionable insights.
• Data Collection Strategies: Efficient data collection is key to achieving an exemplary CDP score. Adopting robust data collection strategies, informed by industry best practices and expert guidance, ensures the integrity and relevance of the submitted data.
• Scoring Process: Following the submission of data and responses, CDP employs a rigorous scoring methodology to evaluate the extent of environmental disclosure and performance. Scores will be allocated latest by November 2024 based on the comprehensiveness and accuracy of the provided information, offering a benchmark for organizational transparency and accountability.

Decoding CDP Scores: A Guide to Environmental Performance Metrics

Curious about how CDP scores can shape your environmental journey? Here's a breakdown to illuminate the significance of each score:

• Disclosure (D/D- Score): "D" CDP score signifies an organization's initial steps towards environmental transparency, indicating the disclosure of their report. Within this spectrum, a D denotes more detailed disclosures than a D-, reflecting a commitment to unveiling environmental impact data.
• Awareness (C/C- Score): The CDP's Awareness score delves into the depth of an entity's understanding and evaluation of environmental issues. "C" CDP score suggests a comprehensive assessment of how business operations impact people and ecosystems, fostering heightened environmental awareness and accountability.
• Management (B/B- Score): An entity earning "B" CDP score showcases proactive recognition and management of environmental impacts. This score signifies a positive trajectory in environmental stewardship, indicating a commitment to addressing and mitigating environmental risks and challenges.
• Leadership (A/A- Score): Reserved for trailblazers in environmental sustainability, the Leadership score signifies exemplary performance in climate-related issues. Organisations earning an "A" CDP score are at the forefront of setting and achieving science-based targets, implementing robust water-related risk strategies, and mitigating deforestation impact.
• Failure to Disclose (F Score): In instances where an entity fails to submit their CDP reporting, an "F" CDP score is allocated. This designation underscores the importance of timely and transparent environmental disclosure, serving as a reminder of the imperative to engage in environmental accountability efforts.

Understanding CDP and Regulatory Obligations

Wondering if CDP reporting is a must? Here's the scoop on its status and why it matters in today's landscape:

1. Voluntary Nature: CDP reporting isn't obligatory, but it stands as one of the most influential frameworks globally for emissions reporting. While not mandated, its significance lies in providing a structured platform for organizations to transparently disclose their environmental impact data.
2. Emerging Regulatory Landscape: Mandatory reporting requirements are evolving, with initiatives like the SEC Climate Disclosure in the United States, the Corporate Sustainability Reporting Directive (CSRD) in Europe, and the Business Responsibility and Sustainability Reporting (BRSR) in India gaining traction. Despite this, not all companies are mandated to submit reports as of now.
3. Consumer and Market Dynamics: The availability of reporting tools fills a crucial gap in consumer demand for sustainability transparency. This shift underscores the importance for companies to engage in reporting, as consumers increasingly prioritize eco-friendly products and hold companies accountable for their environmental practices.
4. Investor Focus on ESG: Environmental, Social, and Governance (ESG) factors have emerged as a key focus for investors. The Sustainable Financial Disclosure Regulation (SFDR) now compels investors to prioritize climate-related metrics in their investment decisions, emphasizing the financial significance of sustainable practices.

Beyond Carbon: Exploring the Multi-Faceted Realm of CDP Reporting

When we think of CDP reporting , Greenhouse gas (GHG) emissions, many times termed as “carbon emissions” like Scope 1, Scope 2 & Scope 3 emissions often come to mind as the primary focus. However, the scope of CDP reporting extends far beyond carbon alone, encompassing a diverse array of environmental metrics crucial for sustainable business practices.

CDP's comprehensive framework delves into various facets of environmental impact, including but not limited to water management, deforestation, and broader environmental sustainability strategies. By providing a holistic platform for disclosure, CDP empowers organizations to transparently communicate their efforts and progress across these crucial domains.

Water management, for instance, is a vital aspect of sustainable operations, especially in regions facing water scarcity challenges. CDP's water-related questionnaires enable companies to assess and address water-related risks, implement conservation measures, and enhance water stewardship practices.

Similarly, deforestation presents significant environmental concerns, particularly in industries reliant on forest resources. Through CDP reporting , companies can outline their strategies for mitigating deforestation risks, promoting responsible sourcing practices, and preserving biodiversity.

Embracing CDP reporting as a holistic endeavour goes beyond mere compliance; it reflects a commitment to environmental stewardship and corporate responsibility. By engaging with CDP's multifaceted framework, organisations can foster transparency, drive innovation, and contribute to a more sustainable future for generations to come.

In today's dynamic business landscape, where environmental considerations are paramount, CDP reporting serves as a beacon of accountability and a catalyst for positive change. Let's harness the full potential of CDP reporting to elevate environmental performance, inspire stakeholders, and build a resilient, sustainable world together.

How Growlity helps in your 2024 CDP Disclosure Reporting?

At Growlity, we understand the importance of setting ambitious yet achievable targets for reducing emissions, crafting actionable climate-action plans, and ensuring accurate and consistent reporting for your CDP disclosures in 2024 . By partnering with Growlity, you gain access to a team of ESG domain experts dedicated to supporting your sustainability journey. Our comprehensive suite of services is designed to help you navigate the complexities of environmental reporting, mitigate risks, and seize opportunities for growth in a rapidly evolving landscape.

We would be delighted to schedule a call at your earliest convenience to discuss how Growlity can tailor our solutions to meet your specific needs and objectives. Please feel free to reach out to us at [email protected] to arrange a suitable time for our discussion.

Thank you for considering Growlity as your partner in driving unlimited growth with sustainability. We look forward to the opportunity to collaborate with you and make a positive impact together.