Big 4: CSRD FY 2024 Analysis
Key learnings from CSRD analysis from each of the Big 4 audit firms. Understand length of Sustainability Statements, IROs used and more.
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Want to understand the CDP 2025 scoring methodology and how it affects your company? This article covers the new essential criteria, key changes and best practices to improve your CDP score. Find out what it means for your environmental reporting and how to do better.
CDP is the world’s largest voluntary environmental disclosure platform for companies, for reporting on Climate Change, Water Security and Forests. Its purpose is to encourage environmental data disclosure and sustainability. The CDP scoring methodology increases transparency and encourages sustainable practices. Clear guidance and recognition opportunities help businesses understand their sustainability position and make targeted improvements.
Preparation is key to get ready for a good CDP score. The CDP rating gives stakeholders a clear view of a company’s environmental strategy.
Reporting through CDP provides the climate data to make changes that benefit the planet and the economy. Understanding how CDP works and the scoring methodology is crucial for any organisation that wants to improve their environmental performance and CDP disclosure.
The CDP scoring methodology is built around four stages: Disclosure, Awareness, Management, Leadership. Each stage is a milestone, guiding companies on their journey to better environmental performance. During the Disclosure stage companies are assessed on the completeness of their reporting and the relevance of the data provided.The Awareness stage assesses a company’s understanding of climate related issues, to make sure they are aware of their environmental impact and the associated risks. In the Management stage the focus is on evaluating the measures a company has taken to address environmental issues.
Finally the Leadership stage recognises companies that demonstrate best practices and leadership in sustainability initiatives. Continuous monitoring of the CDP score is key to identify areas for improvement and progress. These four stages provide a framework for companies to measure their environmental performance and progress.
CDP scores are based on various environmental factors, with a main focus on greenhouse gas emissions, deforestation and water security. Companies are aiming to achieve global goals such as halve emissions by 2030 and be climate neutral by 2050. CDP identifies major agricultural commodities as key drivers of deforestation. These include wood, cattle products, soy and palm oil.
The CDP questionnaire helps companies to be transparent about their water dependencies, risks and strategies for resource management. By addressing these key elements companies can improve their CDP score and contribute to global sustainability through a corporate questionnaire.
Master the scoring criteria and CDP questionnaire elements to get high scores and demonstrate environmental leadership.
Clear and transparent environmental disclosures are key to build stakeholder trust and increase a company’s CDP score. As the world moves to a 2050 net-zero target, transparent and consistent sustainability reporting is becoming a business imperative. Transparent disclosures allow stakeholders to assess a company’s environmental impacts, risks and strategies with clarity and confidence.
Transparent environmental data disclosure shows a company’s commitment to sustainability and responsible practices, which improves their CDP score and reputation among stakeholders, as stated by the carbon disclosure project. Companies must disclose their environmental data to increase transparency and accountability.
In an era where environmental transparency is highly valued, clear and honest reporting is the foundation of good sustainability management.
The 2025 CDP questionnaire has a streamlined approach with minimal changes, the CDP portal interface and questions remain mostly the same. The updates are to improve the clarity and accountability of environmental disclosures in the 2025 CDP cycle. A key usability change allows multiple third party certifications to be selected in question 8.7.2 of the Forests Module, reducing the reporting burden. The Water Security module remained the same with only minor updates related to WWF Water Risk Filter updates and river basin states and regions lists. The SME Questionnaire is stable with minor edits to improve clarity and reduce the reporting burden.
The focus for 2025 is on clarity and consistency across all modules. Understanding these updates will help companies to navigate the CDP questionnaire better and improve their scores.
The language changes in the guidance aim to improve clarity and make the scoring criteria more understandable. Simplifying the language helps users to understand and navigate the CDP scoring process.
These minor language changes are to improve clarity and consistency in scoring criteria, to help companies in their reporting and to incorporate key points and options.
New guidance in the Business Strategy Module emphasizes the use of CDP responses in corporate transition planning. New guidance to use CDP responses as evidence will strengthen corporate transition strategies.
These new guidance is to use CDP responses to support transition plans for businesses, to give a strategic advantage.
Updated definitions for ‘Recycled Content’ and ‘Production of plastics’ to help companies to report their plastic use. Added guidance for recycled content calculation to help organisations to report their recycling practices.
These changes will help companies to align their practices with CDP’s expectations and increase transparency in their environmental disclosures.
The 2025 CDP questionnaire has minor changes to improve clarity and user experience rather than major changes. Companies are required to provide more detailed disclosures on their climate strategies and Scope 3 emissions in the updated CDP questionnaire.
The revised CDP questionnaire aligns more with IFRS S2 and the EU CSRD Directive, with a greater emphasis on compliance with international reporting standards. New in the questionnaire is the requirement for external verification of at least one category of Scope 3 emissions for companies aiming for the CDP A-list.
The 2025 CDP questionnaire still requires the documentation of biodiversity related risks and plastic consumption management.
Module 1: Introduction
Module 2: Identification, Assessment & Management
Module 3: Disclosure of Risks & Opportunities
Module 4: Governance
Module 5: Business Strategy
Module 6: Consolidation Approach
Module 7: Environmental Performance – Climate Change
Module 8: Environmental Performance – Forests
Module 9: Environmental Performance – Water Security
Module 10: Environmental Performance – Plastics
Module 11: Environmental Performance – Biodiversity
Module 12: Environmental Performance – Financial Services
Module 13: Further Information & Sign Off
The 2025 CDP cycle has refined scoring criteria to improve the reliability and comparability of environmental data. The updated criteria will ensure that companies’ sustainability efforts are accurately reflected.
The 2025 scoring system prioritizes stability and core functionality, so there are minimal changes from previous years. These refined criteria will provide a more accurate assessment of a company’s environmental performance and progress. Master these scoring criteria to improve your CDP score.
Meeting specific mandatory requirements is required to achieve higher CDP scores. Question 1.2 (currency) is now mandatory in the CDP questionnaire.
In Module 4, a duplicate option was removed in 4.1.2 and updated guidance was added in 4.7.1. At least 70% third-party verification of Scope 3 emissions is now a baseline requirement.
CDP now requires full third-party verification of Scope 1 and 2 emissions and at least 70% verification of Scope 3 emissions. Third-party verification increases the credibility of environmental disclosures.
For 2025, companies must have all Scope 1 and 2 emissions verified by an external party to meet CDP standards. Reducing emissions through third-party verification can lead to big score improvements.
From 2025, public scores for forests and water financing will be published for the financial services sector. This is the first year that scores for forest and water financing for the financial services sector will be made public.
These scores will reflect the financial services sector’s initiatives and commitments to sustainable development in forests and water resources management. This increased transparency in scoring will help build trust with stakeholders and encourage more sustainable practices within the industry and how they scored.
Disclosing climate data through the CDP rating is key to managing risks, raising awareness and setting ambitious targets. To maximise your CDP score in 2025, make sure to follow the Essential Criteria and pay attention to the additional guidance from CDP. Anthesis provides strategic guidance to help organisations navigate the responses and understand the CDP requirements to boost their scores.
Nossa Data offers technology solutions to streamline and simplify the sustainability reporting journey. Anthesis offers in-house scoring tools and mock score assessments to help organisations review their CDP disclosures and improve their scores. Nossa Data’s platform has dynamic templates and AI assessments to simplify ESG disclosures to various frameworks.
Implementing these actions will improve your CDP score.
A science-based target is aligned to the scientific consensus on what is required to limit global warming. Setting science-based targets helps companies to align their emissions reduction goals with global warming limits and contribute to climate change mitigation.
These targets are part of the CDP scoring criteria and play a key role in a company’s environmental performance and CDP score.
Third-party verification is a critical component to increase the reliability of the environmental data disclosed by companies. The new standards for review, verification and assurance in emissions reporting have been introduced to increase the integrity of the reported data which is supported by these measures.
These verification enhancements will increase stakeholder confidence in the reported information and ensure it is accurate and trustworthy. Implementing robust third-party verification practices will improve your chances of getting higher CDP scores.
Companies must confirm they will disclose their data in the CDP questionnaire. Before submitting a response to the CDP, organisations must choose and pay the admin fee (if applicable). The Submission Lead is the main contact within the organisation for the CDP disclosures.Improve governance disclosures by disclosing leadership, strategy and oversight and you can boost your CDP score by demonstrating your commitment to accountability and sustainability.
The CDP scoring methodology is closely linked to various ESG and climate focused disclosures such as the Corporate Sustainability Reporting Directive (CSRD) and the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD recommendations were incorporated into the CDP questionnaire in 2018 so CDP reporting is aligned with global climate disclosure standards. This alignment helps companies to report once and meet multiple regulatory requirements.
New requirements for sustainability reporting were introduced by the CSRD which aligns closely with CDP’s objectives. This alignment means comprehensive and standardised environmental reporting across the EU and more transparency for stakeholders. Integrating these frameworks helps companies to disclose climate related financial risks effectively and have consistent and comparable reporting practices.
The CSRD is mandatory for EU businesses, CDP is voluntary but aligns with the CSRD requirements. CDP’s questionnaire covers environmental, social and governance topics similar to the CSRD, more transparency for stakeholders.
The alignment with CSRD means comprehensive and standardised environmental reporting across the EU so companies’ disclosures meet high standards of transparency and accountability. CDP’s integration with TCFD means companies disclose climate related financial risks effectively and manage and mitigate those risks.
Setting targets that are in line with limiting global warming to 1.5°C is key to effective climate action. Science-based targets help companies to align their emissions reduction goals with the latest climate science. CDP focuses on science-based targets which aligns with SBTi’s objective to drive climate action.
By focusing on science-based targets CDP helps companies to set emissions reduction goals that are in line with climate science, a core principle of SBTi. The partnership between CDP and SBTi means accountability in corporate climate strategies through verified targets, essential for high CDP scores.
Companies can get tailored support and data access through CDP’s accredited solution provider (ASP) programme, which offers various support options to help with the reporting process including expert guidance, data analytics and benchmarking tools. Nossa Data is one of those services, allowing companies to report directly to CDP via its API submission tool that also uses AI for workflow efficiency and scoring.
Our resources simplify the CDP reporting process along with ESG disclosures as a whole. Nossa Data ensures accurate and comprehensive disclosures aligned to CDP’s requirements. Access to these support services can boost a company’s CDP score by providing the tools and expertise to navigate the complex reporting landscape.
Master the CDP 2025 scoring methodology if you are committed to sustainability and transparency. By understanding the 4 stages of CDP scoring, key elements of CDP scores and the importance of transparent disclosures companies can navigate the CDP questionnaire and improve their scores. The changes to the 2025 questionnaire, minor language updates, new guidance in business strategy module and updates to plastics definitions are designed to improve clarity and user experience.
The enhanced scoring criteria for 2025, mandatory requirements for higher scores, verification and assurance enhancements and public scores for forests and water financing shows the importance of reliable and comparable environmental data. Strategic actions like setting science-based targets, leveraging third-party verification and enhancing governance disclosures can significantly boost a company’s CDP score. By aligning with other ESG disclosures and utilising available support and resources companies can achieve high CDP scores and demonstrate leadership in sustainability & climate change.
For more information directly from CDP, visit the 2025 questionnaire breakdown published here.
The new guidance in Module 5 emphasizes that CDP responses can be utilized as evidence for transition plans in business strategy. This addition strengthens the framework for developing and demonstrating effective transition approaches.
Module 10 has been revised to include updated definitions for 'Recycled Content' and 'Production of plastics,' as well as enhanced guidance for calculating recycled content. These changes aim to improve clarity and support in managing plastic materials effectively.
CDP is the largest global platform for voluntary environmental disclosures, helping organizations report on crucial sustainability areas such as climate change, water security, and forests. It plays a critical role in enhancing transparency and accountability in environmental efforts.
In 2024, over 640 capital market signatories engaged with CDP, requesting disclosures from more than 22,400 companies.
Sustainability reporting is strategically important as it promotes transparency and consistency, aligning companies with the global push towards a net-zero target by 2050. This approach not only enhances corporate accountability but also meets stakeholder expectations for responsible business practices.