CDP SME Climate Change Scoring Category Weightings 2024

ContentsSME 2024: Summary of scoring methodology category weightings ................................................................ 3
SME Climate Change 2024: Scoring Categories ........................................................................................... 3
Scoring categories and weightings: SME Climate Change - General ............................................................... 4

SME 2024: Summary of scoring methodology category weightings
This document outlines the 2024 SME weightings that will be applied to the scoring categories fororganizations responding to CDP’s 2024 SME questionnaire. Please refer to the weightings summary sheet
below for the specific breakdown. It is recommended that the 2024 SME Scoring Introduction document isread in advance of reading the weighting 'summary sheets'. For a breakdown of which questions fall into
which scoring category, please refer to the SME 2024 Scoring Category Mapping Document.
Scoring categories are groupings of questions by topic. They are sub-groups of the 2024 questionnaire
modules and are consistent across all sectors. Weightings are applied to scoring categories at the SME
Management and SME Leadership levels only. As this is the first year of SME, SME Leadership level is notscored in 2024, as such weightings will not be applied at this level in 2024. Weightings reflect the relative
importance of each category within the boundaries of the CDP SME questionnaire and available scoring
criteria.

SME Climate Change 2024: Scoring Categories
The scoring categories in 2024 are as follows:Business Strategy

Risk Disclosure

Context

Risks and Opportunities Process

Emissions Reduction Initiatives

Scope 1, 2 & 3 Emissions

EnergyTargets

Environmental Policies

Verification (Incl. Emissions)

GovernanceValue Chain Engagement

Opportunity Disclosure
As scoring for SME is new to 2024 the scoring categories have been aligned as much as possible with theCDP Full Corporates Categories for Climate change. There are however some differences:-Scope 1, 2 and 3 emissions are a combined category for SME.
Public Policy Engagement and Industry Collaboration does not exist for SME due to no questions
being present in this category.
Pricing Environmental Externalities does not exist for SME due to no questions being present inthis category.
Additional Climate-Related Metrics does not exist for SME due to no questions being present inthis category.

Scoring categories and weightings: SME Climate Change - General
There are 13 categories in CDP’s 2024 general SME questionnaire – Climate change.

Scoring categories and weightings: SME - General

In recognition of their relative importance, some categories are more heavily weighted. For instance,
evaluation and disclosure of GHG emissions is a critical first step that every organization must take tounderstand its negative impact on the climate and take the right steps to reduce it. Doing so is becoming
increasingly important for obtaining financing, ensuring competitiveness and resiliency, and meeting
regulatory and supplier requirements. For the 2024 SME questionnaire, the high weighting in ‘Verification(Incl. Emissions)’ and ‘Scope 1, 2 and 3 emissions’ reflects best practise in environmental reporting,whereby emissions assurance ensures the quality of data and processes disclosed. This is essential for
setting realistic emission reduction targets. Furthermore, target setting provides direction and structure toenvironmental strategy. Providing information on quantitative targets and qualitative goals, and progress
made against these targets, can demonstrate your organization’s commitment to improving climate-related
issues management at a corporate level. This information is relevant to investors’ understanding of how
your organization is addressing and monitoring progress regarding the risks and opportunities disclosed
and is recognised in the high weighting of the ‘Targets’ category . SMEs are increasingly being requested tocommit to reduce their emissions and report progress against their commitments by their stakeholders andlenders. To note, where there is no weighting present, this is because there is no scoring present at SME
management level to weight.

The bar chart above shows the % weighting applied to each of the scoring categories at SME Managementlevel for the 2024 SME scoring methodology – Climate Change.

The bar chart above shows the % weighting applied to each of the scoring categories at Management and Leadershiplevels for the general 2024 SME scoring methodology - SME.