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Jul 13 2023

CDP, Simplified | Why, What and How of Carbon Disclosure Project?

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CDP, Simplified | Why, What and How of Carbon Disclosure Project?

Alright folks, listen up! If you haven't heard of the Carbon Disclosure Project yet, it's time to get with the program. CDP is the new black in environmental reporting, and it's not just some boring, stuffy acronym that you can ignore. No, no, no. CDP is the real deal, the cream of the crop, the top dog in the sustainability world. It's like the secret weapon that companies can use to measure, manage, and disclose their environmental impact like a boss. And let me tell you, if you want to be a player in the business world these days, you better have CDP on your radar.

Why CDP?

CDP was founded in 2000 with a simple but ambitious goal: to encourage companies to disclose their environmental impact and take action to reduce it. Since then, CDP has become the world's largest environmental disclosure platform, with over 9,600 companies, 800 cities, and 120 states and regions participating. CDP's data is used by investors, policymakers, and other stakeholders to assess a company's environmental performance and make informed decisions.

What does CDP require?

CDP asks companies to disclose information on their carbon emissions, water usage, deforestation risk, and other environmental metrics through a standardized questionnaire. Companies are scored based on their level of disclosure and their performance on key environmental indicators. CDP also asks companies to set targets for reducing their environmental impact and to report on their progress towards achieving those targets.

How does CDP work?

CDP operates on a simple but effective model. Every year, CDP sends out questionnaires to companies, cities, and states around the world, asking them to disclose their environmental impact. The questionnaires cover a range of topics, including climate change, water security, and deforestation. Companies have a few months to gather the necessary data and complete the questionnaires. Once the responses are submitted, CDP's team of experts analyzes the data and provides each company with a score and feedback on their environmental performance. The scores are then made available to investors, policymakers, and other stakeholders, who use the information to make informed decisions about which companies to invest in or do business with.

If you're not already participating in CDP, you're missing out on a huge opportunity to showcase your environmental leadership and attract environmentally conscious investors. Plus, with more and more companies jumping on the CDP bandwagon, you don't want to be left behind. In 2020, over 9,600 companies disclosed through CDP, representing over 50% of global market capitalization. That's a lot of companies that are taking environmental disclosure seriously, and you should too.

But here's the thing: CDP isn't just about ticking boxes and filling out questionnaires. It's about taking real action to reduce your environmental impact and build a more sustainable future. And that's where the rubber meets the road. CDP data shows that companies that disclose through CDP are more likely to set ambitious environmental targets and achieve them. In fact, companies that have been disclosing through CDP for at least eight years have reduced their carbon emissions by an average of 20%.

So, if you're ready to take your environmental performance to the next level, it's time to get on board with CDP. It may seem like a daunting task at first, but with the right tools and support, you can make real progress towards a more sustainable future. And who knows, you might even have some fun along the way!

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