2023 CDP Supplier Engagement Rating Introduction
CDP Climate Change 2023

Contents
Introduction to the CDP Supply Chain Program’s Supplier Engagement Rating .................... 3
Organizations included in the Supplier Engagement Rating ....................................................... 3
Supplier Engagement Rating criteria ........................................................................................ 4
Governance.............................................................................................................................. 5
Question(s): C1.3, C1.3a Individual performance; C3.1 Integration into business strategy....... 5
Rationale: ............................................................................................................................. 5
Summary of the scoring methodology: ................................................................................... 5
Targets..................................................................................................................................... 6
Question(s): C4.1; C4.1a; C4.1b; C4.2; C4.2b Targets........................................................... 6
Rationale: ............................................................................................................................. 6
Summary of the scoring methodology: ................................................................................... 6
Scope 3 Emissions ................................................................................................................... 6
Question(s): C6.5 Scope 3 Emissions; C10.1; C10.1c Scope 3 Emissions verification ............ 6
Rationale: ............................................................................................................................. 6
Summary of the scoring methodology: ................................................................................... 6
Supplier Engagement ............................................................................................................... 7
Question(s):C12.1; C12.1a; Supplier Engagement; C12.2; C12.2a Climate-related requirements............................................................................................................................................. 7
Rationale: ............................................................................................................................. 7
Summary of the scoring methodology: ................................................................................... 7
Overall CDP Climate Change performance ............................................................................... 8
Question(s): C1-C14 ............................................................................................................. 8
Rationale: ............................................................................................................................. 8
Summary of the scoring methodology: ................................................................................... 8
Availability of the Supplier Engagement Rating results ........................................................... 8
Timeline and Key Dates............................................................................................................ 9
Questions on this methodology ................................................................................................. 9
Frequently Asked Questions (FAQs) ....................................................................................... 10

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Introduction to the CDP Supply Chain Program’s
Supplier Engagement Rating
Purchasing organizations have potential to incentivize significant environmental changes in their
supply chain. However, in 2022, just 38% of organizations responding to the CDP climate change
questionnaire reported that they engage with their own suppliers on GHG emissions and climatechange strategies.
By establishing a system to evaluate supplier engagement practices and recognize best practice,
CDP aims to increase buyer engagement to accelerate action on emissions in global supply chains.
In particular, CDP seeks to address two key barriers organizations face to beginning a supplierengagement strategy:Organizations don’t know what best practice for sustainable supply chain management
looks like. The sheer scale of reviewing purchasing processes and creating a strategy tointegrate environmental information into purchasing can be daunting, and many organizations
have trouble identifying best practice upon which to base their actions.
Organizations don’t think they get credit for supplier engagement on climate change.
CDP’s experience shows that organizations will improve their performance when presented
with an opportunity to gain credit for their actions. CDP will recognize and award credit forachievements of excellence to support company action and lasting improvements inmanagement practice.
Following on from a successful pilot year, CDP learned that all participating companies in the SER
consultation thought the SER helped raise their supplier engagement work. Additionally, over halfused it as a tool to help shape their supplier climate profile. In 2023, CDP will release the Supplier
Engagement Rating for the seventh time.

Organizations included in the Supplier Engagement Rating
Organizations that respond to the full version of the CDP Climate Change request from theircustomer(s) or investors will be evaluated on supplier engagement. Responses must be submitted
by the deadline communicated by CDP, or purchase an On-Demand Score, for inclusion.
Companies that disclose to the minimum version of the questionnaire in 2023 will not be eligible toreceive a Supplier Engagement Rating.

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Supplier Engagement Rating criteria
Organizations will be evaluated on their supplier engagement through their responses to questions
in four key areas of the CDP climate change questionnaire related to governance, targets, ambition,
management (Scope 3) and supplier engagement. These specific questions offer the opportunity
for a company to provide details on supplier engagement in the Governance, Targets, Scope 3
Emissions, and Scope 3 Emissions (Supplier Engagement) sections of the questionnaire. In
addition, an organization’s overall performance across the full CDP climate change questionnaire isfactored into the rating as an overall assessment of company performance on climate change.
Information provided through the Forests and/or Water Security questionnaire or the additional
Supply Chain Module (Climate Change/Forests/Water) are not evaluated.
To achieve a rating above D, companies must report engagement with their suppliers (seeScope 3 Emissions: Supplier Engagement for more details).
The final SER will be determined by the overall percentage of points awarded throughout thequestionnaire, with each questionnaire section weighted as part of the overall score as follows:
Scoring Category

Weighting in the Supplier Engagement Rating

Governance

20%

Targets

15%

Scope 3 Emissions Accounting

20%

Supplier Engagement

35%

Overall CDP Climate Change perf ormance

10%

The value of this final percentage score will be equated to a final SER using the following thresholds.
Final SER Score

ThresholdA

76% - 100%A-

66% - 75%B

56% - 65%B-

41% - 55%C

26% - 40%C-

16% - 25%D

9% - 15%D-

1% - 8%F

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To achieve SER Leaderboard status an organization must respond publicly to a request from theircustomer(s) and/or investor(s). CDP reserves the right to review all companies that achieve thehighest scores to ensure that nothing included in the CDP response or available in the public domain
calls into question the company's suitability for inclusion in the SER Leaderboard. CDP reserves theright to review data dating from the reporting year on a number of social and environmental topics
related to CDP's programs and provided by the data provider RepRisk.
The scoring methodology is outlined by scoring category in further detail below, including a list of
the relevant CDP questions and the rationale and summary methodology for each section. Pleaserefer to the CDP 2023 Supplier Engagement Rating Methodology document on the CDP guidance
page for a detailed breakdown of the scoring methodology, including point values for each question.
In 2023 the SER methodology has been updated to expand the scoring to include scoring criteria in
additional questions in Targets, Scope 3 emissions and Supplier engagement (climate-relaterequirements) and update scoring criteria for Transition plans.

Governance
Question(s): C1.3, C1.3a Individual performance; C3.1 Integration into business strategy
 C1.3a Provide further details on the incentives provided for the management of climate -related
issues (do not include the names of individuals).
 C3.1 Does your organization’s strategy include a transition plan that aligns with a 1.5°C world?
Rationale:
Whether an organization provides staff incentives for supplier engagement is a simple indicator of
the internal importance placed on company’s approach to managing climate change in their supply
chain.
Developing a climate transition plan provides certainty that a company is aligning its sourcing
priorities and supply chain to long-term climate goals and that its business model willcontinue to be relevant in a net-zero carbon economy.
Summary of the scoring methodology:
Points are awarded for reporting details on incentives related to supplier engagement on climatechange. Full points are awarded for reporting monetary rewards and partial points are awarded forreporting other benefits related to the following: Buyers/purchasers or all employees are entitled to receive benefits for the management ofclimate change issues;
 Chief Purchasing Officer, Chief Financial Officer or Procurement manager are entitled toreceive benefits for the management of climate change issues;
 Incentivized performance indicators for environmental criteria included in purchases and/or
supply chain engagement.
Full points are awarded for already having a publicly available transition plan that aligns with a 1.5oC
world and a well-defined feedback mechanism in place, to track progress. Transition plans that meet
CDP Management scoring criteria will be awarded full points. Partial points are awarded for planningto develop a transition plan in the next two years if the organizations strategy have been influenced
by climate-related risks and opportunities. No points are awarded for not planning to develop atransition plan in the next two years if the organizations strategy have been influenced by climate related risks and opportunities or a strategy that has not been influenced by climate-related risks andopportunities.

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Targets
Question(s): C4.1; C4.1a; C4.1b; C4.2; C4.2b
 C4.1 Did you have an emissions target that was active in the reporting year?
 C4.1a Provide details of your absolute emissions target(s) and progress made against thosetargets;
 C4.1b Provide details of your emissions intensity target(s) and progress made against thosetarget(s).
 C4.2 Did you have any other climate-related targets that were active in the reporting year?
 C4.2b Provide details of any other climate-related targets, including methane reduction targets.
Rationale:
Companies that establish an upstream Scope 3 emissions reduction target along with a supplierengagement target demonstrate awareness of emissions in their supply chain.
Summary of the scoring methodology:
Companies that do not report an emissions target will not be eligible for points in the section .
Points are awarded based on the details reported for absolute or intensity targets as follows.
 Both absolute and intensity targets that have been approved by the Science Based Targets
Initiative will be awarded points. Alternatively, absolute targets that meet CDP Leadershipscoring criteria will be awarded points.
 Points are also awarded for reporting absolute or intensity targets regarding “Scope 3:
Purchased goods & services”.
 Partial points are awarded for reporting absolute or intensity targets in any other upstream
category.
Companies who do not have any emissions target or other climate-related targets will not be eligible
for points in this section.
 Points are awarded for reporting an additional climate related target of the type ‘Engaging with
suppliers’.

Scope 3 Emissions
Question(s): C6.5 Scope 3 Emissions
 C6.5 Account for your organization’s Scope 3 emissions, disclosing and explaining any
exclusions.
Rationale:
Reporting upstream Scope 3 emissions demonstrates an organization’s ability to measure theclimate change-related impact of their supply chain.
Summary of the scoring methodology:
Points are awarded for each category of evaluated and reported Scope 3 emissions (upstream). The
scoring criteria for this question are the same as for the general CDP climate change Scope 3 scoring
criteria, with one important differentiation – a company can only achieve full points for ‘Purchased
Goods and Services’ if the category is reported as ‘Relevant, calculated’ and both ‘Metric tonnes
CO2e’and ‘Methodology’ are completed.

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Question(s): C10.1; C10.1c Scope 3 Emissions verification
 C10.1 Indicate the verification/assurance status that applies to your reported emissions .
 C10.1c Provide further details of the verification/assurance undertaken for your Scope 3
emissions and attach the relevant statements.
Rationale:
Third party verification of Scope 3 data indicates that an organization has reported accurate scope
3 emissions data. Providing confidence in an organization’s ability to measure the climate changerelated impact of their supply chain.
Summary of the scoring methodology:
Points are awarded if for Scope 3 emissions there is third-party verification, or an assurance
process is in place. No points are awarded if there is no third-party verification or assurance process
in place or in there is no emissions data provided.
Points are awarded for verification of Scope 3 emissions that meet CDP Leadership scoring criteria.

Supplier Engagement
Question(s): C12.1; C12.1a; Supplier Engagement; C12.2; C12.2a Climate-related
requirements
 C12.1 Do you engage with your value chain on climate-related issues?
 C12.1a Provide details of your climate-related supplier engagement strategy.
 C12.2 Do your suppliers have to meet climate-related requirements as part of yourorganization’s purchasing process?
 C12.2a Provide details of the climate-related requirements that suppliers have to meet as partof your organization’s purchasing process and the compliance mechanisms in place.
Rationale:
Through these questions, organizations are able to demonstrate the comprehensiveness andimpact of their supplier engagement strategy in deeper context.
Summary of the scoring methodology:
To achieve a rating above D companies must indicate they engage with suppliers in C12.1. Points
will be awarded as follows for reporting details on supplier engagement.
 Points are awarded for reporting the number of suppliers that your company engages with andfor reporting the proportion of your total spend or Scope 3 emissions that the suppliers represent The SER awards points based on the type of engagement reported, and its associatedpercentage of spend or percentage of Scope 3 emissions covered. The type of engagement isjudged on a maturity spectrum where points will be limited in relation to spend :Spend or Scope 3
emissions

Engagement &incentivization

Information collection

Innovation & collaboration

0%

0/8

0/8

0/8

1-39% or 1-49%*

4/8

2/8

6/8

40-100% or 50-100%*

8/8

6/8

8/8

* The 1-49% and 50-100% bands apply only to the category ‘Information collection’.
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For Climate-related requirements full points are awarded for indicating that climate-related
requirements are included in supplier contracts. Partial points are available if suppliers have to meetclimate-related requirements but these are not included in supplier contracts or if there are plans to
introduce them within the next two years. Points will not be awarded if there are no plans to introduce
these within the next two years.
Further points are available if setting a science-based emissions reduction target is part of theclimate-related requirement. Partial points are available for any other selection other than otherplease specify.

Overall CDP Climate Change performance
Question(s): C1-C14
Rationale:
Organizations that demonstrate strong management over their own overall climate change impacts
will be best placed to show leadership when engaging with suppliers.
Summary of the scoring methodology:
Points are awarded based on the overall CDP Climate Change score awarded to an organization.

CDP
score

A

Points 10/10

A-

B

B-

C

C-

D

D-

F

9/10

6/10

5/10

4/10

3/10

2/10

1/10

0

Availability of the Supplier Engagement Rating
results
Companies that are requested by their customer(s) and/or investor(s) and disclose to the 2023
Climate Change questionnaire will be assessed on their supplier engagement and receive feedbackon their rating in early 2024.
The rating will be represented in the form of a letter band, in line with other CDP scoring and rating
systems. Per CDP policy, ratings will not be shared publicly* and will only be provided to thedisclosing company and their requesting customer(s). Ratings will be provided to the disclosing
company in the form of an email from CDP to the individual that submitted the CDP response.
*Exception: LeadersCompanies that meet leadership criteria through the Supplier Engagement Rating will behighlighted as leaders on the annual CDP Supply Chain report webpage. Leaders will be provided
with materials to help highlight their achievement, including a CDP badge of recognition.

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Timeline and Key Dates
The timeline for the 2023 Supplier Engagement Rating system and the dates for scheduledannouncements are as follows:
Activity

TimingSupplier Engagement Rating methodology published on
the CDP website

May 2023

CDP evaluation of companies withEngagement Rating methodology

July – December 2023

Supplier

Leader recognition in annual CDP Supply Chain reportand events

Early 2024

Questions on this methodology
If you would like information about receiving feedback on your score, make suggestions about CDPs
methodology, or ask a general question, please contact the CDP Help Center.

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Frequently Asked Questions (FAQs)
What is the CDP Supplier Engagement Rating (SER)?
An organization’s average upstream emissions are around 11.5 times greater than their direct
operations. Because of this, organizations have much greater potential to reduce global emissions
by influencing their supply chains.
The SER is a letter grade that indicates how effectively companies are engaging their suppliers on
climate change. You can see a list of 2022 SER leaders on our website along with the Supply
Chain report which showcases best practice on supplier engagement.
How is the SER calculated?
CDP assesses performance on supplier engagement using a company’s response to selected
questions on governance, targets, scope 3 emissions, and value chain engagement in the CDP
Climate Change questionnaire. The 2023 SER methodology is available on our guidance pagealong with other CDP scoring methodologies.
Does CDP publish SERs?
SERs are private and will not be published on CDP’s website or in any reports, unless a company
receives an A. They will be made available to companies via email and their corporate dashboard.
SERs based on responses submitted in 2023, will not be shared with requesting investors, but will
be shared with requesting customers if submitted to them. Companies responding to investors forthe first time can choose to make their scores private and to not be included in the SER
Leaderboard if they achieve an A.
Do companies need to complete a separate questionnaire/answer additional questions to beassessed for the SER?
No. CDP uses a company’s existing response to the CDP Climate Change questionnaire to assess
selected questions on governance, targets, scope 3 emissions, and value chain engagement. The
SER methodology is available on CDP’s guidance page.
Who receives a SER?
CDP provides a Supplier Engagement Rating (SER) to all companies who respond to the fullversion of CDP’s Climate Change questionnaire, in addition to the Climate Change score. To be
eligible companies must respond by the deadline. Companies who respond to the minimum
version of the questionnaire are not eligible. CDP Supply Chain members and companies who
responded to customer requests, have been receiving the SER since 2016. Since 2019, CDP
expanded this rating to included companies also requested by investors only.
Why did CDP expand the rating to companies only requested by investors?
The SER was driven by demand from purchasing organizations (CDP supply chain members) for agreater understanding of best practice on supplier engagement and for visibility of how effectively
their engagement with suppliers is being cascaded further into their supply chain. As such, theSER was initially applied to CDP Supply Chain members and companies who responded tocustomer requests. However, because an organization’s average upstream emissions are around11.5 times greater than their direct operations and organizations have much greater potential toreduce global emissions by influencing their supply chains, this rating is a useful indicator for allcompanies responding to the CDP Climate Change questionnaire.
Where can companies find their SER?
SERs are emailed to the main user of the CDP Climate Change response. SERs will be displayedon the “scores and responses” section of the corporate dashboard.
When will companies get their SER?
You can view CDP’s 2023 timeline on our website.

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Are SERs shared with investors?
SERs based on responses submitted in 2023 will not be shared with requesting investors.
Are SERs shared with customers?
SERs will be shared with requesting customers (CDP supply chain members) if a company
submits to them.
How is the SER used?
Supply Chain members use it to identify best practice in supplier engagement and to see how
effectively they and their suppliers are cascading action on climate change into their supply chains.
Companies use it to see how effective their own supplier engagement is. The SER Leaderboard
highlights companies who achieve an A rating so companies can see what best practice looks like.
How long has the SER been going?
The SER was introduced in 2016, based on 2015 responses to the CDP supply chain climate
questionnaire (now known as the CDP Climate Change questionnaire as requested by customers).
CDP Supply Chain members and companies who responded to customer request s have been
receiving the SER since 2016. Since 2019, CDP expanded this rating to companies also requested
by investors only.
Does the SER affect my CDP Climate Change score?
No.
Does my CDP Climate Change score affect my SER?
Yes. The overall CDP Climate Change score is part of the SER assessment criteria. See the SER
methodology for more information.
How do companies get feedback on their SER?
A SER report is available for all companies on their dashboard (this is not available for companies
only requested by investors prior to 2019).
Why can companies get a different score for their value chain engagement category in the
CDP Climate Change scoring methodology to the SER?
The CDP Climate Change score - and its categories – are not comparable to the SER. The value
chain engagement section within the CDP climate change score focuses on the answers to questions
C12 – on both upstream and downstream value chain engagement. The SER focuses on upstream
only using answers not just on C12, but also on other areas such as governance and the overall
CDP score. The reason for this difference is because of the purposes and aims of each score. The
value chain engagement section category score concentrates on a company’s upstream anddownstream value chain strategy as part of the wider CDP Climate Change methodology – it is one
part of wider indicators used to inform stakeholders, and benchmark companies on their over all
approach to managing climate change. However, the SER is developed to highlight supplierengagement leaders and help companies benchmark their impact on cascading action to their supply
chain and necessarily must include an element of a company’s wider approach to climate change,in order to cascade this action effectively. The SER was created partly because the CDP Climate
Change score doesn’t provide companies with a communicable score about their supplierengagement achievements, and therefore does not enable recognition of the work companies are
specifically doing to tackle supply chain emissions, which are on average 11.5 times more than thosefrom direct operations. Many companies are still not taking the action needed beyond their direct
operations and so the methodology to identify SER leaders is much simpler, though like the other
CDP methodologies we plan to modify and tighten the SER methodology over time to meet theneeds of its users and drive the appropriate corporate behaviours.
How does the SER relate to Financial Institutions?
The SER focuses on key areas of a companies response in relation to their engagement with thiersuppliers. All organisations responding to the full version of the CDP Climate Change request will
be evaluated including Financial Institutions. Whilst supplier engagement is a key area for all
disclosing companies, it is important to note that the most critical engagements of financial
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institutions are through their portfolios, with their investees and clients, which are not captured by
the supplier-focused SER methodology.

Version No.

Date

Owner

ChangeV1

04/05/2023

E. BeechFirst version

V1.1

04/03/2024

E. Beech

Note added in FAQ section for
Financial Institutions.

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