With the opening of the new reporting season for the Carbon Disclosure Project (CDP), organisations have a fresh opportunity to enhance their environmental disclosures and improve their CDP scores. . Given the recent updates to the CDP’s Integrated Questionnaire, this article outlines essential strategies for businesses aiming to excel in their sustainability reporting.
A Strategic Outlook
- Understanding the New Integrated Questionnaire
The CDP has streamlined its reporting process with a single, comprehensive questionnaire that now covers climate, water, and forests. To ensure all aspects of your sustainability efforts are adequately reported, you need to take a holistic approach to environmental disclosure in this integration. - Aligning with Standards & Regulatory Frameworks
Alignment with established standards and regulatory frameworks is critical. Ensure your disclosures meet the requirements of frameworks such as TCFD, SASB, and GRI. This alignment not only facilitates compliance but also enhances the credibility and comparability of your reports. - Shifting from Narrative to Specific Information
The CDP’s emphasis has shifted from qualitative narratives to specific, quantitative information. Focus on providing detailed financial and GHG metrics. Clear, precise data will be key in demonstrating your organisation’s environmental impact and progress. - Meeting the New ‘Hurdles’ Criteria
To achieve a score, you must meet basic requirements, or ‘hurdles’, at all scoring levels. Familiarise yourself with these criteria and ensure that your disclosures meet or exceed them to avoid low scores. - Disclosing 1.5°C-Aligned Climate Transition Plans
Your climate transition plans must align with the 1.5°C target set by the Paris Agreement. Outline clear, science-based targets and detailed strategies for achieving these targets. Demonstrating a credible path towards significant emissions reductions will positively impact your CDP score. - Including Carbon Pricing
Including carbon pricing in your business strategy is another critical component. Demonstrate how your organization uses carbon pricing to drive low-carbon decisions and manage climate-related risks. - Engaging Your Value Chain
Engage with your entire value chain on climate issues. Encourage suppliers and partners to disclose their own GHG emissions and environmental impacts. Collaborative efforts across the value chain can significantly enhance your overall environmental performance. - Validating Your Data
Validation is crucial for proving confidence in your reported numbers. Utilize third-party verification to ensure the accuracy and reliability of your data. Validated data not only strengthens your disclosure but also builds trust with stakeholders.
Practical Steps to Enhance Your CDP Score
Step 1: Conduct a Gap Analysis
Perform a thorough gap assessment to identify areas where your current disclosures fall short of the new CDP requirements. Focus on the new integrated aspects covering climate, water, and forests.
Step 2: Strengthen Internal Data Collection Processes
Enhance your internal processes for data collection and management. Ensure that you accurately capture and report data from all relevant departments.
Step 3: Invest in Training and Capacity Building
Provide training for your team on the new CDP requirements and best practices in sustainability reporting. Building internal capacity is essential for maintaining high-quality disclosures.
Step 4: Leverage Technology Solutions
Utilise advanced reporting and data management tools to streamline the reporting process. Technology can help in accurately capturing, managing, and reporting large volumes of environmental data.
Step 5: Engage with Stakeholders
Regularly engage with stakeholders, including investors, customers, and suppliers, to gather feedback and improve your reporting practices. Transparent and open communication can enhance the credibility of your disclosures.
Supporting Your Carbon Reduction Goals
Achilles is proud to work with companies around the world to support them to achieve their carbon reduction goals. In 2023 we supported a number of Carbon Reduce customers in achieving the CDP A-list. Over 100 countries and territories have approved the Carbon Reduce program. The CDP recognises it as a verification standard and a provider of Science Based Targets.
Our program offers a comprehensive solutions to help organisations measure, manage, and reduce their carbon footprint. By utilising our services, businesses can ensure accurate data collection, robust reporting, and effective carbon reduction strategies aligned with the latest CDP requirements.
Improving your CDP score requires a strategic and comprehensive approach to sustainability reporting. By understanding the new requirements, aligning with standards, focusing on quantitative data, and engaging your value chain, you can significantly enhance your environmental disclosures. Prepare for the reporting season by taking proactive steps to meet the new criteria.
For additional assistance and information, visit the CDP website. There, you can find the latest updates and tips on reporting sustainability. Additionally, consider how Achilles’ Carbon Reduce program can support your journey towards better environmental performance and higher CDP scores.
