Disclosing
through CDP
The business benefits
2022

CDP IS THE WORLD'SENVIRONMENTALREPORTING SYSTEM

18,700+companies representing
half of global market
capitalization disclose
through CDP.

680+

CDP is a non-profit that runs the global environmental
disclosure system. We support organizations in making
their environmental impact transparent to stakeholders,
better understanding how they can reduce their impact, andacting to become environmental leaders. CDP has the world’s
largest, most comprehensive set of environmental data, andis utilized by capital markets and purchasing organizations
to make informed decisions, reward high-performing
companies, and drive action.

CAPITAL MARKETS AND PURCHASERS

financial institutions
worth US$130+
trillion in assets
support our requests
for data.

US$6.4

Requestenvironmental
data through
CDP

COMPANIES

trillionin purchasing power
represented by our280+ Supply Chain
members.

95%of companies use
environmental
metrics, including
CDP data inprocurement
processes or plan
to within two years.
2

Measure anddisclose theirimpacts, risks,
opportunities
and action

Companies take action to tackle
climate change, prevent deforestationand safeguard water

WHY DISCLOSEENVIRONMENTAL
DATA?

Disclosure is increasingly
becoming an expectedbusiness norm,
demanded by capital
markets and consumers
alike. Reporting throughCDP brings wide-reachingbusiness benefits, frombrand value to risk
management and getting
ahead of regulation.

86%of companies
responding to a 2021
CDP post-disclosure
survey agreed that“protecting andimproving the reputationof my organization” isan important benefit ofdisclosing through CDP.

In August 2021, the IPCC issued a “code red for humanity”,
warning that disastrous tipping points are nearing. Thescience is clear: two years into the decade of action, urgent,system-wide action is needed to halve global emissions, halt
deforestation and tackle the water crisis by 2030. Now is thetime for companies to disclose their environmental data on
climate change, deforestation, and water security if we are to
be in with any chance of limiting global warming to 1.5°C andaverting climate catastrophe.
Doing so brings tangible business benefits:
IMPROVE YOUR REPUTATIONGET AHEAD OF REGULATION Capital markets, purchasers andend consumers increasingly expect
companies to be transparent
and take responsibility for theirenvironmental impacts. 86% ofcompanies responding to a 2021
CDP post-disclosure survey agreed
that “protecting and improving thereputation of my organization” is a key
benefit of disclosure.

 As governments and regulators takesteps to respond to climate change
and related environmental challenges
such as deforestation and water
insecurity, environmental legislation
is increasingly on the horizon injurisdictions around the world.

 The public is increasingly concerned
about environmental issues andexpects businesses to manage
their environmental impacts andbe transparent. In October 2021,
according to an ONS survey, threequarters (75%) of adults in the United
Kingdom said they were worried about
the impact of climate change.
 Young jobseekers searching forcareers that help tackle environmental
issues are being advised to lookat CDP disclosures to establish
which companies are “serious about
responding to climate change”.1

 A growing number of countries(France, Netherlands, Denmark, UK,Sweden) and the European Union haverequirements for certain companies
to report environmental data. The U.S.
Securities and Exchange Commission
also recently proposed mandatory
climate disclosure for US-listedcompanies, and China has signaled its
intent to introduce reporting rules inthe near future.
 CDP disclosure is fully TCFD-aligned.
Companies that disclose through CDP
are a step ahead, ready for mandatory
TCFD-aligned reporting regulations.
For example, the UK government
announced it will make TCFD-aligned
disclosure mandatory by 2025.

1 ft.com (2022). Jobs that will help save the planet.

3

WHY DISCLOSEENVIRONMENTAL
DATA?

76%of organizations said
disclosing through
CDP helps "boost
their competitiveadvantage".

BOOST COMPETITIVE ADVANTAGE
 Environmental transparency correlateswith financial success, with CDP
Climate Change A List companies
outperforming a reference index by
5.8% per year.2
 76% of organizations said disclosing
through CDP helps "boost theircompetitive advantage".
 95% of buyers responding to a
CDP survey say they are using
environmental metrics, including CDP
data, within their procurement process– or plan to within two years.
IDENTIFY RISKS AND OPPORTUNITIES Companies face material risks totheir business from climate change,
deforestation and water insecurity,from physical to regulatory toreputational risks.
 A group of the world’s biggest
companies by market capitalization
valued climate risks to theirbusinesses at almost US$1 trillion.

Meanwhile, the reported climaterelated opportunities were evenhigher, totaling over US$2.1 trillion.
 Measuring and reporting data eachyear improves awareness andensures strategy is informed byrelevant data.
TRACK AND BENCHMARK The disclosure and scoring processhelps companies to set ambitious
goals and measure their progress
towards them, while also providing
accountability and trust for stakeholders
to track company progress.
 CDP’s disclosure system allows
companies to benchmark theirenvironmental performance against
their industry peers and receive
feedback on their progress each year.
 280+ major companies with US$6.4
trillion in buying power use CDP to
track their suppliers’ environmental
performance, which contributes totheir own Scope 3 emissions acrossthe supply chain.

2 Source: The STOXX Global Climate Change Leaders index – based on CDP’s climate change ‘A List’. Date range: December 2011
to December 2021.

4

AIM FOR A POSITION
ON CDP'S A LIST OFENVIRONMENTAL LEADERS

270+
companies
recognized asenvironmentalleaders.

5.8%
per annum
outperformanceover since 2011.

CDP’s annual A List names the world’s businesses leading on
environmental transparency and action. In 2021, we recognizedover 270 global corporations as pioneers on climate change,
deforestation and water security. CDP scores are the gold
standard for environmental performance - and the leading
companies outperform the market.

STOXX® Global Climate Change Leaders index.
From December 19, 2011 to December 31, 2021, the STOXX® Global Climate Change Leaders
index outperformed the STOXX® Global 1800 index by 5.8% per annum
STOXX ® Global Climate Change Leaders EUR (Gross return)
STOXX® Global 1800 EUR (Gross return)
450

400

350

300

250200150Signify

5Apr 2021

Sep 2021

Jul 2020

Dec 2020

Oct 2019

Feb 2020

Dec 2018

May 2019

Aug 2018

Oct 2017

Mar 2018

Jan 2017

CDP provides not only adisclosure platform but alsoa well-established rating
mechanism. Being able to saywe are on the A List is wellrecognized. It shows we have acomplete and well performing
sustainability program, so we
use our CDP score in external
communications and investor
presentations, and we get
recognition for that.

Jun 2017

Apr 2016

Aug 2016

Nov 2015

Feb 2015

Jun 2015

Sep 2014

Jul 2013

Apr 2014

Feb 2013

Nov 2012

Dec 2011

May 2012

100

Environmental leadershipbegins with a robust disclosureand transparency plan. CDP has
become the de facto standard
for corporate reporting, which
is one of the many reasons why
Ecolab is proud to have been
disclosing carbon and water
inventories through CDP forover a decade.
EcolabHOW DO FINANCIAL
MARKETS USE
CDP DATA?
680+

FINANCIALINSTITUTIONS

280+,MAJOR GLOBAL
PURCHASERSINVESTMENTADVISORS

18,700+INDEXPROVIDERSGLOBAL RESPONDING
COMPANIESDATAPROVIDERSSELL SIDEDATA

BUY SIDE

ANALYSISRESEARCHPROVIDERSCAPITAL MARKETSUSE OF DATACDP DATAUSERS INCLUDE:

WE POWER NEW FINANCIAL
PRODUCTS, DATA TOOLS ANDRESEARCH, INCLUDING:WE HELP DRIVE
TRANSFORMATIONALINITIATIVES, INCLUDING:

 Bloomberg Terminal
 STOXX Trucost
 FTSE/Russell MSCI ESG
 ISS ISG
 Goldman Sachs
 Amundi

 STOXX Low Carbon Indices CPR Invest Climate Action fund
 Climetrics, the climate rating for funds
 Three Euronext CDP Environment

 Climate Action 100+
 The Investor Agenda
 Science Based Targets initiative Carbon pricing toolkits
 RE100 initiative ACT initiative

indices using climate, forest andwater scores for the first time
 CDP’s award-winning sector
research for investors

cdp.net/investor

6

215

CLIMATE CHANGE

of the world's biggest
companies identified
potential financial impactsof climate risks totalling up
to almost US$1 trillion.

DRIVE CLIMATE ACTION THROUGH DISCLOSURE
Improving corporate awareness through measurement anddisclosure is essential to the effective management of GHG
emissions and climate change risk. Corporate disclosure on
climate change is an established business norm with over
18,000+ companies disclosing on climate change in 2022.
Disclosing climate data through CDP brings a range of benefits:

US$2.1trillion

in potential climate-related
opportunities identified by225 companies.

CDP's Climate Change questionnaire is fully aligned with theTCFD recommendations. Companies that disclose through
CDP are a step ahead, ready for mandatory TCFD-aligned
reporting regulations.
Increase transparency to stakeholders including investors,
customers, policymakers, regulators and the general public.
Enhanced ability to identify potential financial impacts,
associated costs, financial savings and new opportunities.
Standardized framework facilitates consistency andcomparability for investors, and also allows organizations togauge performance against peers.

By disclosing your targets
publicly through CDP,
you can ensure they will
be showcased on theUNFCCC's Global Climate
Action Portal, where they
can influence policymakers
to take bold climate action.

CDP disclosure is fullyaligned with the TCFD
Framework and will assist
in your consistency with
TCFD recommendations.

Better preparedness for the transition to the net-zero economy
including emerging mandatory regulatory regimes worldwide.

Sample questions

Have youidentified climaterelated risks andopportunities
substantial to yourbusiness?

What are youremission reduction
targets andprogress madeagainst those?

CDP helps companies publicly commit to take meaningfulaction and set ambitious targets to tackle climate change
and transition to the low-carbon economy through renewableenergy use, science-based targets, carbon pricing and more.
The Science Based Targets initiative (SBTi) is apartnership between CDP, the United Nations Global
Compact, World Resources Institute (WRI) and theWorld Wide Fund for Nature (WWF). Commit toadopt a science-based emissions reduction targetto generate the innovations needed to transition toa low-carbon, sustainable economy.
RE100 is led by The Climate Group inpartnership with CDP. Commit to using
100% renewable power.
CDP’s Climate Change questionnaire is alignedwith the TCFD’s recommendations, encouraging
companies to report climate-related financial
disclosures in line with the TCFD

cdp.net/climate

7

FORESTS

WATER SECURITY

DEMONSTRATING FOREST STEWARDSHIPREDUCING WATER RISK

Deforestation accounts for approximately 15% of the world’s
greenhouse gas emissions, equivalent to those of the entire
transport sector. Protecting and restoring forests and othernatural ecosystems could provide up to 30% of the climatechange mitigation needed to limit global warming to 1.5°C.

With increasing water stress, pressure is growing forcompanies to build long-term resilience to water challenges
into their businesses. CDP’s work to tackle issues of water
security is centered on a request for companies to disclosebusiness-critical, water-related information to inform theirdecision-making processes and drive effective action.

CDP holds the world’s largest and most comprehensive
dataset on corporate deforestation data. 1,042 companies
disclosed on forest impact in 2022, representing a 20%
increase from the previous year.
The financial impact of risks from deforestation alone isestimated to be US$53.1 billion. CDP’s work on forests helps
companies and their investors address their exposure todeforestation risk and seize opportunities from proactively
tackling deforestation.

Companies reported potential financial impactsof US$301 billion from water risks through CDP in
2021. Companies need to disclose on all relevant
environmental themes to be competitive and resilientin the changing market.
Disclosure through CDP increases the transparencyof water security and pollution reduction measures toshareholders and customers.

Reporting through CDP’s annual Forests questionnaire isa simple way for companies to demonstrate transparency
and share progress with their stakeholders throughcomprehensive, comparable and credible reporting.

By completing CDP's annual Water Security
questionnaire, companies can better understand water
risks and opportunities, facilitating informed decisionmaking and improving long-term resilience.

Companies can report on seven forest-risk commodities:
palm oil, timber products, cattle products, soy, rubber,cocoa, and coffee. The first four are scored. Since 2019,
metals & mining and coal companies can also reportbiodiversity information through CDP.

Disclosure helps accelerate the development ofstandard water impact metrics and performancebenchmarks.

CDP's Forests questionnaire is aligned with the
Accountability Framework.

Sample questions

Sample questions
For your disclosed
commodities, do you
have a system tocontrol, monitor, orverify compliance withno conversion and/or no deforestationcommitments?

Did you have any
active timebound andquantifiable targets forincreasing sustainableproduction and/or
consumption of yourdisclosed commodities?

Soy

Palm oilTimberBeef

50m

Rubber

Cocoa

Describe yourcompany’s water
policy, strategy ormanagement plan.

Has yourorganization
experienced anydetrimental waterrelated impacts?

Coffee56%

hectares of forest cover lost since2015 - over 70 million soccer fields.

deficit in the global water supply relative
to demand by 2030 according to WRI.

cdp.net/forests

cdp.net/water8

MEDIA

CDP’s work is regularly featured in global
top-tier publications such as:
The Financial Times
Economist
Washington Post
Wall Street Journal
New York Times
Bloomberg
Reuters

LANDMARK RECENT REPORTS

Global Supply Chain Report 2021:
Engaging the chain: driving speed and scale
Global Forests Report 2020: The collective effort
to end deforestation - a pathway for companies
to raise their ambition
Global Water Report 2020: A wave of change:
The role of companies in building a water-secure world
Hungry for Change:
Are companies driving a sustainable food system?

ABOUT CDP
CDP is a global non-profit that runs the world’s environmental
disclosure system for companies, cities, states and regions.
Founded in 2000 and working with more than 680 financial
institutions with over $130 trillion in assets, CDP pioneeredusing capital markets and corporate procurement to motivatecompanies to disclose their environmental impacts, and toreduce greenhouse gas emissions, safeguard water resources
and protect forests. Over 14,000 organizations around theworld disclosed data through CDP in 2021, including morethan 13,000 companies worth over 64% of global market
capitalization, and over 1,100 cities, states and regions.
Fully TCFD aligned, CDP holds the largest environmental
database in the world, and CDP scores are widely used to drive
investment and procurement decisions towards a zero carbon,
sustainable and resilient economy. CDP is a founding memberof the Science Based Targets initiative, We Mean BusinessCoalition, The Investor Agenda and the Net Zero AssetManagers initiative.
Visit cdp.net or follow us @CDP to find out more.

9CONTACT
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