As the first quarter of 2024 draws to a close, many professionals are anticipating a break from the demanding reporting season.
According to Position Green, however, for those in the sustainability field, the approach of the second quarter signals a crucial time for CDP reporting. This period is often seen as an administrative challenge, but with the right preparation, it can be managed effectively.
This year, the CDP has revamped its data collection process, which will affect over 23,000 companies. The organization has merged its three previous questionnaires—Climate, Water Security, and Forests—into a single, comprehensive CDP Corporate Questionnaire. This new format not only simplifies the process for companies required to report on multiple environmental fronts but also promotes a more integrated view of environmental challenges.
Additionally, questions related to the supply chain are now integrated throughout the questionnaire, rather than being confined to a separate section. This change requires companies to have a thorough understanding of their value chain’s dynamics and how these interconnect with various environmental factors. The questionnaire expansion to include broader ecosystem impacts—such as land use, biodiversity, and plastics—aims to provide a more complete assessment of environmental dependencies and effects.
Another significant change in the CDP reporting process is the alteration of the reporting timeline. The platform for disclosure will open later in the year, on 4 June 2024, with submissions due by 18 September 2024. This shift in schedule could interfere with summer vacation plans, so it’s advisable to plan accordingly.
It’s important to view CDP reporting not as a burdensome task but as a key component of a company’s ongoing sustainability efforts. CDP emphasizes transparency and diligence in integrating climate and ecological considerations into corporate strategies. The alignment of CDP’s framework with current and upcoming standards, such as the TCFD, ISSB S2, TNFD, ESRS, and the SEC Climate Disclosure Rule, highlights its commitment to consistency and relevance in sustainability reporting. The integration of these frameworks into the CDP questionnaire has streamlined the reporting process, making it a crucial step in achieving high scores.
The recent CDP Awards Europe in Paris underscored the critical role of CDP data in advancing corporate sustainability actions. Sherry Madera, the CEO of CDP, emphasized that the data required for compliance are instrumental in driving actionable change within companies. She pointed out that the reporting season is not just about meeting deadlines but is a starting point for continuous improvement and strategic action across companies and their supply chains.
Lastly, achieving a high score on the CDP questionnaire can be challenging due to its complex nature. Engaging with a consultant who is well-versed in the CDP methodology can be extremely beneficial. These experts can help navigate the intricacies of the questionnaire and maximize the effectiveness of your responses, ensuring that your company’s sustainability leadership is accurately reflected in your score.
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