Frequently Asked Questions

What is CDP?

The Carbon Disclosure Project (CDP) is an independent not-for-profit organisation aiming to create a lasting relationship between shareholders and corporations regarding the implications for shareholder value and commercial operations presented by climate change. Its goal is to facilitate a dialogue, supported by quality information, from which a rational response to climate change will emerge.

CDP provides a coordinating secretariat for institutional investors with a combined $50 trillion combined of assets under management. On their behalf it seeks information on the business risks and opportunities presented by climate change and greenhouse gas emissions data from the world's largest companies: 3,000 in 2008. Over 8 years CDP has become the gold standard for carbon disclosure methodology and process. The CDP website is the largest repository of corporate greenhouse gas emissions data in the world.

CDP leverages its data and process by making its information requests and responses from corporations publicly available, helping catalyse the activities of policymakers, consultants, accountants and marketers.

How is CDP funded?

CDP is funded by a variety of organisations, national governments and agencies, charities and companies. These include: DEFRA (UK), Environmental Protection Agency (US), VROM (Netherlands), NUTEK (Sweden), DOEN Foundation (Netherlands), Esmee Fairbairn Foundation (UK), Nathan Cummings Foundation (USA), Oak Foundation (Switzerland), WWF (Germany, India and UK), Renewable Energy and Energy Efficiency Partnership (REEEP), Merrill Lynch, Pictet Asset Management and AXA.

Which countries are included?

Country

Office

Sample size. (The largest companies, as measured by market capitalisation)

Asia (ex-Japan) Association for Sustainable and Responsible Investment in Asia (ASrIA) (operated as a partnership with CDP) Asia 80 of the largest Asian companies (ex-Japan)
Australia and New Zealand Investor Group on Climate Change (IGCC) (operated as a partnership with CDP) ASX 200 / NZ 50
Brazil BANCO ABN AMRO REAL and ABRAPP, project managed by Fabrica Ethica (operated as a partnership with CDP) 75 largest companies in Brazil listed on the BOVESPA Sao Paolo Stock Exchange
Canada Conference Board of Canada (operated as a partnership with CDP) Canada 200
China CDP London and SynTao 100 China
France CDP Secretariat Funded by AXA and Agence de L'Environement et de la Maitrise de l'Energie (ADEME) (The French Governmental Agency for Environment and Energy Efficiency) SBF 120
Germany BVI Bundesverband und Asset Management  (operated as a partnership with CDP), WWF Germany German 200
India Confederation of Indian Industry; WWF India. (operated as a partnership with CDP) India 200
Italy CDP Secretariat S&P/MIB 40
Japan CDP Secretariat Japan Japan 150
Latin America Project managed by Fabrica Ethica S&P Latin America 40
Korea Project Managed by Eco-Frontier 50 of the largest Korean companies.
Netherlands Dutch Ministry of Housing, Spatial Planning and Environment (VROM) 50 largest Dutch companies (AMX and AEX)
Nordic Region CDP Secretariat Scandiniavia Funded by Nutek (the Swedish Agency for Economic and Regional Growth),Folksam and KLP Nordic 190
South Africa NBI (National Business Initiative) (operated as a partnership with CDP) FTSE/JSE Top 40
Spain CDP France Ibex 35
Switzerland CDP Secretariat Funded by Ethos and Pictet Asset Management 100 of the largest companies (SPI Large and Mid cap (SOCI)
UK CDP Secretariat London. FTSE 350
USA CDP Secretariat, New York. S&P 500
Electric Utilities CDP Secretariat 250 of the world's largest electric utilities companies
Transport CDP Secretariat 100 of the largest transport companies by market capitalisation

Does anybody else offer a similar service?

There are other organisations, e.g. The California Climate Action Registry; but, CDP is the only organisation which collects corporate data globally directly from companies and now holds the largest registry of corporate Greenhouse Gas emissions data in the world. Every year, the number of companies responding to the questionnaire increases.

Do all companies have to fill in the questionnaire and disclose their results?

No; the questionnaire is entirely voluntary, but more and more companies are seeing the benefits in responding to the questionnaire. If a company does not want their information disclosed, it will not be made publicly available on the website. It will only be used in the production of aggregate statistics and in the annual report. The information will also be available to signatory investors.

What areas does the questionnaire cover?

Areas covered in CDP questionnaire and reports:

  1. Analysis of the commercial risks and opportunities from climate change including: regulation, physical risks from extreme weather events, changes in technology and shifts in consumer attitude and demand.
  2. Strategy to respond to the risks and opportunities that climate change presents
  3. GHG emissions accounting.
  4. GHG emissions management, reduction and cost implications.
  5. Climate change governance.

What is the reporting cycle?

The chosen sample of companies (ie FTSE 350 or S&P 500 etc) are sent a questionnaire in February. They have four months to complete it, deadline is 31st May. The results and analytical reports for the Global 500 are made publicly available via the website in September. Other country reports are made available from September through to December at a series of high profile launches in the countries that CDP operates. Each country launch attracts renowned speakers; in 2007, former US President Bill Clinton, Sir Terry Leahy (Tesco), Sir Tom McKillop (RBS) spoke. If you want more information on the launches, please contact the Press Office.

What are the advantages of responding?

It is very much in the companies' interest to respond:

  • Being able to measure carbon emissions is the first step in starting the process of managing it.
  • The results from the questionnaire can often be very revealing for the companies and will allow them to make unexpected savings across their business operations.
  • It gives companies an opportunity to look at their greenhouse gas emissions and energy use in a structured way
  • It provides a high level of visibility and accountability to all stakeholders including institutional investors
  • The questionnaire contains quantitative as well as qualitative information and thus it enables companies to take a holistic look at climate related risks, opportunities and management strategies.
  • It allows companies to benchmark themselves against others in their industry

    • Click here for the EPA best practice report.

    Are the responses accurate?

    In reporting to their shareholders through CDP, all responding companies recognise the importance of producing accurate information. Increasing numbers of responses are independently audited and due to the transparent nature of the process, companies recognise that all the information they report must be accurate. Companies are encouraged to follow the GHG protocol (www.ghgprotocol.org) to measure emissions, which is a globally respected methodology.

    What are the categories of response to CDP?

    QF = Questionnaire Forthcoming, this means a company has confirmed that it does intend to answer the CDP questions.
    AQ = Answered Questionnaire, this means a company has answered the questions as they are set out in the CDP documents.
    IN = Information, this means a company has responded by providing an Environment / CSR / Annual report or a weblink to such a report. It could also be a more detailed email or letter that provides some information but does not actually answer the questions as they are set out in the CDP documents.
    DP = Declined to Participate, this means a company has responded saying that they will not be answering the CDP questions
    NR = No Response, this means a company has not responded at all.

    Why is CDP important?

  • CDP provides key climate change data and information to investors, corporations, policy makers and academics. CDP aims to make this data as widely available as possible. By encouraging corporations to measure their emissions, it then makes it possible for them to manage them.
  • CDP provides companies with a clear framework for reporting and discussing climate change strategy development.
  • Reporting facilitates corporate efforts to measure and ultimately manage greenhouse gas emissions and energy use.
  • The high level of visibility and credibility that CDP enjoys enables reporting companies to distinguish themselves as leaders.
  • The data coming out of CDP from other companies provides a source for benchmarking and is a great way to uncover ideas.
  • Climate related risk, opportunity and GHG management programmes can foster internal benefits for companies.

    • What has CDP achieved?

  • One of the largest collaborations of investors on any single issue
  • The largest registry of corporate global GHG emissions data in the world, which is helping the investment community to facilitate superior equity and debt investment decision-making
  • Shareholder support for corporations to measure and manage the climate change issue
  • Investor community leadership supporting the work of other stakeholders engaging with the climate change issue (e.g. policymakers, consultants)

    • Do investors use this data to affect Investment decisions?

    Institutional Investors use CDP data to feed into investment products as well as to inform their lending decisions. Investors also identify companies in their portfolios with both high quality and poor carbon disclosure practice and some file shareholder resolutions for better disclosure on climate risk from companies not complying with CDP disclosure.

    Does this disclosure change customer behaviour?

    Most company responses to CDP are publicly available and can therefore be used by discerning consumers to help inform decisions about the companies they interact with in their every day lives.

    Does this disclosure change corporate behaviour?

    Corporations find completing the CDP questionnaire can be extremely informative in gathering information across the company on on-going initiatives and in drawing up plans for new initiatives for improving energy efficiency or reducing emissions. Companies also use it for benchmarking against other organisations.

    Companies also find responding to CDP helps improve transparency and provides a credible forum for them to disclose climate change information. It also helps with forward planning on environmental issues and provides an opportunity for focusing on sustainable business practice. For more information Click here

    What does one tonne of carbon mean in practical terms?

    Leaving ten twin fluorescent light fittings on for eight hours a day will produce one tonne of carbon a year. (source: www.carbonmap.co.uk)

    Reducing the heating temperature in an office by just 1°C can save 30 tonnes of carbon a year. (source: www.carbonmap.co.uk)

    A transatlantic return flight from London to New York will emit over a tonne of carbon, per passenger.

    Before the industrial age and extensive use of fossil fuels, the concentration of carbon dioxide in the atmosphere stood at about 280 parts per million. The IPCC (www.ipcc.ch) projects that, if unchecked, atmospheric carbon dioxide concentrations by 2100 will range from 650 to 970 parts per million.

    Collecting data

    CDP1

    CDP2

    CDP3

    CDP4

    CDP5

    CDP6
    Number of institutional investors. 35 95 155 284 315 385
    Investor Assets under Management $4.5 trillion $10 trillion $20 trillion $31 trillion $41 trillion $57 trillion
    Sample Size 500 500 500 1900 2400 3000
    No. answering the questionnaire in full (total sample) 235 300 355 960 1310  
    % answering the questionnaire in full (FT500 sample only) 47% 60% 71% 72% 77%