The CDP, or Carbon Disclosure Project, is a global non-profit organization that operates the world’s largest environmental disclosure system for companies, cities, states, and regions. Through the Carbon Disclosure Project, organizations are required to periodically provide information on carbon emissions, water usage, deforestation, and other environmental issues via questionnaires; these submissions are assessed annually and recognized globally. The Carbon Disclosure Project’s assessment methodology is fully aligned with the Task Force on Climate-related Financial Disclosures (TCFD)—now adopted within the International Financial Reporting Standards (IFRS) S2—ensuring the comparability of disclosed data. Currently, CDP reporting stands as one of the world’s oldest and most significant environmental disclosure frameworks. Data from the Carbon Disclosure Project serves as a basis for shareholders, customers, and regulators to evaluate an organization’s level of environmental engagement.

Tangible Benefits of CDPs for Companies

  1. Enhancing Transparency and Accountability By reporting to the Carbon Disclosure Project, companies can measure, monitor, and manage their environmental impact in a more systematic and transparent manner. This transparency is crucial for building trust with investors, customers, and other stakeholders.
  2. Improving Corporate Reputation and Image Companies that actively participate and achieve high scores in Carbon Disclosure Project reporting are viewed as leaders in sustainability. This boosts their reputation, attracts environmentally conscious customers and business partners, and strengthens their market position.
  1. Facilitating Access to Capital Global investors are increasingly considering environmental performance in their investment decisions. Investors now rely on data from the Carbon Disclosure Project to assess a company’s environmental commitment and performance. This information is vital for identifying risks and opportunities within a company’s portfolio and for integrating sustainability factors into the investment decision-making process.
  1. Operational Efficiency and Cost Savings The data collection and analysis processes required for CDP reporting often reveal areas of inefficiency, enabling companies to achieve cost savings by reducing energy and water consumption as well as waste generation.
  1. Environmental Risk Management The Carbon Disclosure Project encourages companies to identify and manage environmental risks, including physical, regulatory, and reputational risks.
This proactive approach helps companies become more resilient in the face of climate change and other environmental issues.
  1. Readiness for Evolving Regulations CDP offers a “write once, use many” approach, where a single disclosure can be used to meet various reporting requirements, enhancing efficiency and providing a competitive advantage in navigating evolving regulations.

Singkatnya, Carbon Disclosure Project adalah standar global untuk pelaporan dampak lingkungan yang tidak hanya membantu perusahaan memenuhi tuntutan transparansi dan regulasi, tetapi juga memberikan manfaat nyata berupa peningkatan reputasi, efisiensi, akses modal, dan daya saing bisnis.

Are you aware of the recent updates and new features in CDP 2025?

The Carbon Disclosure Project has released updates for the 2025 disclosure cycle, focusing primarily on platform stability, methodological clarity, and enhanced support for companies throughout the environmental reporting process.
CDP 2025 introduces an integrated portal and questionnaire that combines all themes—climate change, deforestation, water security, plastics, and biodiversity—into a single format. This aims to simplify the reporting process and reduce data duplication, enabling companies to compile reports more efficiently.
CDP maintains an integrated questionnaire structure covering climate change, forests, water security, plastics, and biodiversity. Changes for 2025 are minor, primarily aimed at enhancing clarity and consistency in assessment.
CDP 2025 provides guidance, questionnaires, and assessment methodologies that are more specific to each entity type—namely companies, small and medium-sized enterprises, and regions.
In addition to emissions reporting, companies are now encouraged to disclose climate-related financial risks and opportunities, in line with global trends in sustainable financial reporting.
The Carbon Disclosure Project is increasingly aligned with IFRS S2. Companies need to ensure their reporting complies with these requirements. 100% verification of Scope 1 and Scope 2 emissions has been mandatory since 2024. There is greater pressure for transparency regarding Scope 3 emissions, making collaboration with suppliers and business partners increasingly important.

New Issues or Challenges for the Carbon Disclosure Project

  1. Complexity of emissions data Scope 1 and 2 emissions disclosures form the basis of the Carbon Disclosure Project assessment. Then there is Scope 3 (indirect emissions from the supply chain), which is highly complex as it requires data from numerous external parties. We can assist companies with supply-chain data integration and digital platforms for tracking Scope 1, 2, and 3 emissions.
  1. Limited internal resources and expertise Many companies lack the personnel and expertise to accurately calculate emissions and report to the Carbon Disclosure Project. Manual processes are also time-consuming and prone to error. We offer end-to-end consulting, CDP reporting team outsourcing, in-house training, or software-based reporting automation.
  1. Evolving standards and guideline adaptation With changes in the latest guidance, companies need to adjust their reporting processes to align with the expectations of the CDP and investors.
  1. Need for climate-related financial disclosure Companies are required to report not only emissions but also the financial risks and opportunities resulting from climate change. We provide consulting solutions for climate-related financial disclosure, the integration of financial and environmental reporting, and training for finance and sustainability teams.

Practical Tips for Preparing the 2025 CDP Questionnaire: Start Early, Prepare Better

Start Preparing Early

The Carbon Disclosure Project questionnaire requires coordination across various divisions. Delaying preparation will only create bottlenecks and compromise data quality. Begin by developing a structured work plan, identifying data owners, and establishing an internal timeline. Structured planning helps avoid obstacles and improves data quality.

Keep an eye on important deadlines.

Ensure you do not miss the data submission deadline. Allocate sufficient time for internal review by management or the ESG team, the third-party verification process (if required, particularly for Scope 1 & 2 emissions), and the finalization and uploading of documents to the Carbon Disclosure Project system.

Make the Most of the CDP Guide

The Carbon Disclosure Project provides highly useful technical guidance for each section of the questionnaire and its scoring. Consider creating a structured worksheet that lists the categories, their respective scores, and their scoring weights.

Ensure Report Consistency

Ensure that all data is organized using uniform formatting and reporting boundaries, and that these are clearly stated at the beginning of the data entry process. Pay close attention to how the questions are phrased and the evidence requested, ensuring that your answers precisely address what is being asked.