2023 marked another record year for CDP as more than 23,000 listed companies worldwide, representing over 66% of global market capitalisation, disclosed through CDP. This is a 24% increase compared to 2022.¹

As mandatory disclosure expands, the 2024 CDP questionnaire will align with the ISSB’s climate disclosure standard (IFRS S2) to provide a harmonised platform to allow investors to access comprehensive data across regulatory requirements, which is comparable across companies and regions.

An alignment with the TNFD framework will also start to be reflected in the 2024 questionnaire, encouraging companies to report on nature by providing a robust set of good practice indicators on areas such as freshwater, oceans, and land.²

CDP scores range from a D to A, taking companies on a journey starting from disclosure (D) to awareness (C), management (B) and finally to leadership (A). Companies that score an A demonstrate best practice in strategy and action as recognised by CDP’s aligned framework. They will have also undertaken actions such as setting science-based targets, creating a climate transition plan, developing water-related risk assessment strategies, and/or reporting on deforestation impact for all relevant operations, supply chains and commodities.³

Even at different stages of a company’s environmental journey, disclosing through CDP can offer significant benefits. It cultivates trust by promoting transparency and enhancing reputation. It can boost competitive advantage, track and benchmark performance against industry peers and uncover risks and opportunities, thereby informing data-driven strategies.⁴

The 2024 CDP cycle

CDP’s new platform will be available from April 2024, with the response window from early June 2024 to September 2024.

The questionnaire will be integrated across all three themes (climate change, forests, and water) to be more efficient and user-friendly, while still enabling companies to receive a separate score for each theme.

Key takeaways

1. Prepare early.

Begin planning for the next CDP cycle as early as possible, taking into consideration any gaps identified and lessons learnt from the previous year and reviewing questionnaires and guidance materials in advance.

2. Provide company-specific information.

Tailoring responses to reflect the company’s unique circumstances by providing case studies and references specific to activities, services, and operating locations gives investors’ confidence that the issue has been thoroughly considered.⁵

3. Demonstrate continuous improvement.

The bar for what qualifies as environmental leadership is raised each year.⁶ Companies should continually adapt and innovate to meet the ever-rising standards for environmental leadership, which are shaped by emerging science, stakeholder feedback, and the market’s demand for environmental transparency.

Remember, CDP’s alignment with global standards and frameworks ensures that your disclosure efforts contribute to meaningful climate action. With a well-defined climate transition plan, you can show your commitment to achieving a 1.5-degree pathway and manage risks for environmental stewardship and long-term profitability. CDP allows your business to foster a sustainable culture within your organisation and helps you to communicate to stakeholders how your disclosures align with your business objectives.

Good luck with your CDP submission in 2024!

Author: Maria Serrano, Consultant, Simply Sustainable

For more information on how Simply Sustainable can help with your environmental disclosures, please get in touch with one of our friendly experts here.

1. https://www.cdp.net/en/companies/companies-scores
2. https://www.cdp.net/en/articles/media/cdp-announces-intention-to-align-with-tnfd-framework-and-drive-implementation-across-global-economy
3. https://www.cdp.net/en/scores/cdp-scores-explained
4. https://www.cdp.net/en/companies-discloser
5. https://guidance.cdp.net/en/guidance
6. https://www.cdp.net/en/articles/companies/scores-press-release-2023