The CDP: A Leader in Sustainability Disclosure and Action

Introduction

The CDP, formerly known as the Carbon Disclosure Project, is a not-for-profit charity that runs a global disclosure system for companies, investors, cities, states, and regions to manage their environmental impacts. The organization aims to make environmental reporting and risk management a business norm, driving disclosure, insight, and action towards a sustainable economy.

CDP's Mission and Impact

CDP's climate change program aims to reduce companies' greenhouse gas emissions and mitigate climate change risk. On behalf of over 800 institutional investor signatories with a combined US$100 trillion in assets, CDP requests information on climate risks and low-carbon opportunities from the world's largest companies. The goal is to help every business better understand and manage the financial risks associated with climate change and to provide investors with more data to make informed investment decisions.

Widespread Adoption for a Sustainable Future

In 2023, nearly 25,000 organizations participated in CDP data disclosures, including over 23,200 companies (worth two-thirds of global market capitalization). Over 23,000 companies disclosed their climate, forests, and water security impacts through CDP in 2023. Out of over 21,000 companies they scored, just under 400 achieved an A score for their leadership in environmental transparency and performance on climate change, deforestation, and water security.

Driving Sustainable Practices Through Disclosure

By reporting to CDP, companies and governmental entities earn a Carbon Disclosure Rating that helps investors incorporate environmental, social, and governance (ESG) indicators into their investment portfolios and sustainable investment strategies. Seven out of 10 companies agree that disclosure through CDP helps them learn more about their environmental impact and impact management. The benefits of disclosure include protecting and improving a company's reputation, building trust through transparency, and responding to rising environmental concerns among the public.

A Leader in the Fight Against Climate Change

CDP is one of the leading figures in the fight against climate change and corporate environmental performance reporting. Fighting climate change is vital for a sustainable economy. CDP has been putting critical environmental data at the heart of business decisions since 2002. CDP works with companies to catalyze urgent action towards a sustainable net-zero, deforestation-free, and water-secure world.

Conclusion

CDP is a nonprofit organization that runs a global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts. The organization is funded by nonprofits, partners, and government grants. It also sustains itself by providing client services and charging administrative fees. It receives funding through three legal entities: CDP Worldwide Group, CDP Europe AISBL Group, and CDP North America.