CDP (formerly the Carbon Disclosure Project) is primarily a voluntary, global reporting framework for environmental disclosure that functions as a leading standard. It provides questionnaires for companies, cities, and states to report on climate change, water security, and deforestation, facilitating standardized, comparable data for investors and stakeholders.
CDP is a popular voluntary reporting framework that companies use to disclose environmental information to their stakeholders (investors, employees and customers). Reporting is completed on an annual basis, with the portal opening in April every year and submissions due in July.
The CDP (formerly known as the Carbon Disclosure Project) is an investor-minded global not-for-profit that encourages businesses to voluntarily report on various climate, supply chain, and environmental indicators every year.
While ESG frameworks provide guidance and best practices, ESG standards are benchmarks of ESG commitment you must meet. These represent the quality of your ESG efforts which can be used by investors, rating agencies, and other stakeholders to evaluate performance.
CDP (formerly the Carbon Disclosure Project) is a global non-profit that runs the world's leading environmental disclosure system for companies, cities, and governments. The CDP framework is a popular voluntary reporting framework and is part of broader ESG reporting frameworks.
The "Big 4" in ESG standards generally refers to the leading, complementary frameworks: GRI (Global Reporting Initiative) for broad stakeholder impact, SASB (Sustainability Accounting Standards Board) for investor-focused financial materiality, TCFD (Task Force on Climate-related Financial Disclosures) for climate risks, and CDP (formerly Carbon Disclosure Project) for environmental performance disclosure, often used together for comprehensive reporting, with newer ISSB standards gaining prominence.
GRI provides the global common language for organizations to report their environmental, social and economic impacts – the GRI Standards. CDP is the global independent disclosure system for companies to measure and manage their environmental impacts.
Unlike standards, frameworks are more flexible and can be adapted to fit specific needs and contexts. They offer a set of best practices, tools, and concepts that guide users in achieving particular goals.
Popular ESG reporting frameworks and standards
The term sustainability is broadly used to indicate programs, initiatives and actions aimed at the preservation of a particular resource. However, it actually refers to four distinct areas: human, social, economic and environmental – known as the four pillars of sustainability.
CDP—formerly known as the Climate Disclosure Project—is the leading voluntary climate disclosure framework used by companies around the world. Although not a regulatory requirement, CDP is an essential tool for companies seeking to reap the business benefits of participating in the new climate economy.
For organizations seeking to build robust environmental, social, and governance (ESG) programs, the Carbon Disclosure Project (CDP) provides one such framework that can help with global disclosure of your environmental impact.
As a unified data source, the CDP enabled businesses to activate personalized marketing, orchestrate journeys and measure outcomes with far greater accuracy. Today, CDPs still deliver significant value in several core areas.
Sustainability reporting frameworks, also referred to as ESG frameworks or ESG reporting frameworks, are high-level guidelines or approaches that provide organizations with a structure to identify, assess, and report on sustainability issues relevant to their operations.
The core of ESG is Environmental, Social, and Governance, but some frameworks add a fourth pillar, often Disclosure, Transparency, or even Economic Performance, to create a holistic view of a company's long-term sustainability and responsibility beyond just profits, covering planet, people, and ethical practices.
CDP is pleased to commit to the following codes of conduct focusing on the provision of ESG ratings and data products, and outline how we comply with these where they apply to our activities: Japan Financial Services Agency's Code of Conduct for ESG Evaluation and Data Providers.
Frameworks provide principles-based guidance on how information is structured, how it is prepared and what broad topics are covered. Meanwhile, standards provide specific, detailed and replicable requirements for what should be reported for each topic, including metrics.
Sustainable Accounting Standards Board (SASB) – This framework addresses sustainability-related risks and opportunities that may affect your organization's financial condition, operating performance, or risk profile. With 77 industry standards available, organizations can track a wide range of ESG issues.
Environmental, Social and Governance (ESG) is a comprehensive framework that looks at organizational impacts on the environment; the treatment of employees, stakeholders and community members; and addresses the quality of governance structures.
Each frame — structural, human resource, political, symbolic — has its own way of looking at how organizations work and what the priorities are. The mistake many managers make is to default to only one of these as their modus operandi and basing their actions on them.
On the basis of these two factors, it is possible to classify standards as ideal, normal, basic, current or expected actual standards.
Frameworks are similar to standards, but they are more comprehensive and may include a set of standards, guidelines, and tools that organizations can use to achieve specific goals or objectives.
CDP is a leading standard for voluntary environmental disclosure with over 23,000 companies participating each year, representing two-thirds of global market capitalization. CDP reporting requirements vary by industry and company size, but all participating companies must disclose emissions and energy consumption data.
The GRI Standards are a modular system comprising three series of Standards: the GRI Universal Standards, the GRI Sector Standards, and the GRI Topic Standards. Each Standard begins with a detailed explanation of how to use it.
Launched in London in 2000 as the Carbon Disclosure Project, CDP initially called for greenhouse gas emissions disclosures as a way to establish information sharing among companies and stakeholders, such as investors. Founders hoped that making such environmental data available could encourage action on climate change.