8 top tips for CDP reporting

Looking to get started with CDP reporting? In this blog, we look at the benefits of CDP and our top tips for completing the questionnaires so you can demonstrate your sustainable action accurately and effectively. 

What is CDP? 

CDP, a global non-profit organisation focused on environmental impact, strives to foster an economy that benefits both humanity and the planet. Through its annual disclosure cycle, CDP empowers companies to assess and address their environmental footprint, whether voluntarily or in response to investor or supply chain demands, in accordance with the TCFD recommendations.  

New for 2024, CDP is further aligned with the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures issued by the International Sustainability Standards Board (ISSB). 

By utilising CDP’s questionnaires, companies can outline their strategies for transitioning to a low-carbon economy by adding climate change-related data to a non-profit disclosure platform. The data submitted not only facilitates shareholder engagement but also aids investors in evaluating the carbon footprint and readiness of their portfolios concerning climate-related risks. 

The benefits of CDP

Reporting through CDP is the perfect time to identify opportunities in business practices. There are several benefits available by completing CDP annually, such as: 

• Get ahead of regulatory and policy changes by continuously monitoring and improving your environmental performance. In doing so, you can identify improvements, set targets to reduce your environmental impact and know where changes might be required. 
• Identify and tackle growing environmental risks that may affect your operations, supply chains and reputation. This proactive approach to risk management can help companies avoid potential financial losses and regulatory penalties associated with environmental issues. 
• Align to global standards and find new opportunities for action, that your investors and customers could be demanding. This transparency and accountability further offers the opportunity to build trust and showcase your commitment to sustainable progress. 

Ready to start CDP disclosure? Here’s our 8 top tips for getting started. 

1) The basics 

Pay careful attention to detail and accuracy to provide a comprehensive overview of your environmental performance.  Ensure that all questions in the CDP questionnaire are thoroughly completed, with columns appropriately filled out, and responses consistent throughout your disclosure, including figures.  

2) Your data 

Present as much quantitative information as possible and keep on top of your data throughout the year. Track any projects that reduce energy or emissions. This ongoing monitoring ensures the accuracy and reliability of your environmental data. 

3) Leadership on scope 3 

Conduct a scope 3 screening to understand the significance of indirect emissions and their relevance to your operations.  Incorporate the findings of this screening into your response to provide a comprehensive overview of your environmental impact, encompassing all relevant scopes. 

4) Risks and opportunities 

Even if you haven’t fully adopted the TCFD recommendations, you can start to quantify the potential financial and emissions impacts of certain climate related risks such as taxes and regulation. By assessing these risks, you can better understand their potential impact on your business and develop appropriate mitigation strategies. 

5) Set a robust strategy 

Your strategy should address climate-related risks and opportunities and include a costed pathway to Net Zero. This strategic approach demonstrates your commitment to environmental sustainability and positions your organisation as a leader in climate action. 

6) Ask for help 

We have specialist knowledge on the CDP process and are here to support you. Whether you’re just starting out or looking to enhance your existing practices, our experts can offer guidance and assistance tailored to your specific needs. 

7) Prioritise engagement 

Get stakeholders from across the business involved in drafting your CDP response to ensure a comprehensive and collaborative approach. Use this opportunity to engage employees in your sustainability efforts, fostering a culture of environmental responsibility and driving meaningful change throughout your organisation. 

8) Look at the bigger picture 

Use the CDP process to review what best practice looks like and elevate your climate resilience strategy. By elevating your climate resilience strategy and embracing leading sustainability initiatives, you can enhance your organisation’s environmental performance and resilience in the face of climate change. 

Ready to get started? Click below to discover our Guide to CDP for more information or get in touch with any questions at hello@energise.com – our expert team will be happy to help!