Accurate CDP Disclosure with Zero Hassle & Zero Delay

CDP: Overview and Importance for Businesses

The CDP began in 2000 as an initiative to encourage companies to disclose carbon emissions to institutional investors. Over time, it has grown into the world's most comprehensive environmental disclosure platform covering climate, water and forest-related risk across global operations.

CDP operates through an integrated corporate questionnaire structured around three core areas:

• Climate Change — captures emissions data, reduction targets, and climate governance.
• Water Security — addresses how companies manage water risk, dependency, and stewardship across operations.
• Forests — examines exposure to deforestation risk across key commodities like timber, soy, cattle, and palm oil.

CDP scores are widely used by institutional investors and corporations to guide decisions on capital allocation, procurement, and partnerships. As a result, disclosure plays a critical role in shaping business outcomes.

• Investor and Capital Access: Investors use CDP scores to assess environmental risk. A weak or missing disclosure can limit access to capital.
• Supply Chain Impact: Many global corporations request CDP disclosures from suppliers, making participation essential for maintaining business relationships.
• ESG Rating and Benchmarking: CDP scores influence ESG ratings and indices while enabling comparison against global competitors.
• Reputation and Market Positioning: Strong disclosures enhance credibility and position businesses as responsible and forward-looking organisations.

CDP Questionnaire Categories

CDP's corporate questionnaire covers three core disclosure streams. Covering distinct environmental risk areas, they give investors and buyers insights into the business's environmental accountability.

Depending on the business operation and the disclosure requests received, an organisation may need to respond to one, two or all three streams. Oren assesses the exposure and ensures each questionnaire is completed accurately and on time.

CDP Scoring Methodology

CDP evaluates each disclosure response across four scoring levels. Scores reflect the quality and depth of disclosure.

Points to Note

• Progression from one level to the next requires meeting a minimum score threshold and fulfilling all essential criteria for that level.
• Strong performance in isolated areas does not guarantee advancement.
• A CDP score is a direct measure of environmental credibility for investors and supply chain customers. An A or B signals readiness, while C and D signal a starting point.

CDP Disclosure: Process, Requirements & Applicability

Process

The CDP disclosure process reflects a company's commitment to environmental transparency.

• It begins with an invitation from investors, customers, or lenders, though companies can also participate voluntarily.
• After onboarding to the CDP portal, organisations complete relevant questionnaires (climate, water, forests) and submit responses before the annual deadline.
• CDP then evaluates submissions and assigns a score from D to A, which is made publicly available to stakeholders.

CDP Reporting Requirements

To complete CDP disclosure, companies must submit relevant questionnaire modules and report Scope 1, 2, and 3 emissions along with calculation methodologies. Disclosures also include governance structures, sustainability integration, and climate-related risks and opportunities. All responses must be accurate, comprehensive, and submitted annually within the defined timeline.

Applicability of CDP Disclosure

CDP disclosure applies to publicly listed companies, exporters, and organisations engaged in global supply chains. It is often requested by investors and customers, especially through CDP Capital Markets and Supply Chain programs.

Participation is increasingly essential, as CDP scores influence investment decisions, procurement eligibility, and overall business credibility.

Oren's CDP Support Approach

Oren guides organisations through every stage to ensure accurate reporting, measurable improvement in environmental performance and strong scores.

Consequences of Low CDP Score or Non-Disclosure

Failing to disclose or scoring poorly on the CDP leads to real consequences across financial, commercial, and reputational fronts.

1. Loss of Stakeholder Trust

Absence from CDP exhibits a lack of transparency, eroding trust among investors, customers, and partners who rely on disclosed data to make informed decisions.

2. Investor Scrutiny

Institutional investors increasingly screen portfolios using CDP scores. A missing or weak disclosure raises immediate red flags around environmental risk management.

3. Supply Chain Exclusion

International buyers operating CDP Supply Chain programs may deprioritise or drop suppliers who fail to meet disclosure expectations, directly affecting contracts and revenue.

4. No Performance Benchmark

Without a CDP score, organisations have no visibility into their own environmental performance relative to industry peers and global standards.