Preparing for CDP Reporting in 2025: Key Changes, Deadlines, and Strategic Actions
As environmental transparency becomes a non-negotiable for businesses, the Carbon Disclosure Project (CDP) remains a gold standard for demonstrating accountability. With sweeping updates in 2024 and a rapidly evolving regulatory landscape, organizations must adapt quickly to meet the demands of the 2025 reporting cycle. Here’s your comprehensive guide to navigating CDP’s changes, timelines, and best practices for success.
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Why CDP Reporting Still Matters in 2025
Despite the rise of mandatory frameworks like the EU’s CSRD and IFRS S2, CDP retains critical relevance:
• Investor Influence: Over 740 financial institutions managing $136 trillion in assets use CDP data to assess climate risks and opportunities .
• Regulatory Alignment: CDP’s 2024 updates harmonize with global standards (e.g., ESRS, ISSB), easing dual compliance efforts.
• Supply Chain Pressure: Major corporations increasingly require suppliers to disclose via CDP, making participation essential for business continuity.
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Key Changes in the 2024 Framework
The 2024 cycle introduced transformative shifts that will shape 2025 preparations:
1. Integrated Questionnaire:
Climate, forests, water, plastics, and biodiversity disclosures are now consolidated into a single sector-specific questionnaire. This reduces duplication but requires companies to undergo CDP’s automated impact assessment to determine mandatory themes (e.g., water security).
2. Double Materiality:
Aligning with the CSRD, companies must disclose nature-related dependencies, impacts, risks, and opportunities (DIROs). Firms familiar with GRI or CSRD reporting will have an edge.
3. Quantitative Scoring:
CDP now emphasizes financial metrics (e.g., climate-related costs, plastic mitigation investments), demanding deeper collaboration with finance teams.
4. New SME Framework:
A simplified questionnaire for small and medium enterprises (SMEs) lowers barriers for 90% of global businesses, encouraging broader supply chain transparency.
5. Enhanced Digital Portal:
Launched in April 2024, the updated platform tailors questions to a company’s sector and activities, though 2024 users noted challenges with paywalled response data and scoring delays.
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2025 CDP Reporting Timeline
Mark these deadlines to avoid mishaps
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5 Steps to Prepare for the 2025 Cycle
1. Start Early: Audit and Align
o Review 2024 scores and CDP’s 2025 guidance to identify gaps.
o Align disclosures with ESRS, ISSB, and SEC climate rules to streamline dual reporting.
2. Engage Cross-Functional Teams
o Involve finance teams to track sustainability-linked costs and investments.
o Train leadership on governance disclosures (e.g., board environmental competencies).
3. Leverage Technology
o Use ESG software to centralize data and automate cross-framework reporting.
o Test CDP’s portal early to navigate question dependencies and technical glitches.
4. Conduct a Mock Scoring Exercise
o Simulate CDP’s scoring methodology to uncover weaknesses (e.g., vague risk assessments).
o Prioritize “Essential Criteria,” which are critical for advancing scoring tiers.
5. Strengthen Supply Chain Engagement
o Encourage SME suppliers to adopt CDP’s simplified framework.
o Collaborate with procurement teams to map Scope 3 emissions and deforestation risks.
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The Strategic Value of CDP in 2025
Beyond compliance, CDP reporting offers:
• Risk Mitigation: Identifying water scarcity or plastic dependency risks informs resilience planning.
• Investor Confidence: High scores signal robust governance, attracting ESG-focused capital.
• Innovation Opportunities: Disclosing biodiversity impacts can drive R&D in nature-positive solutions.
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Final Checklist for Success
• ✅ Assign accountability to sustainability, legal, and finance teams by March 2025.
• ✅ Submit responses by September 15 for scored reports and investor visibility.
• ✅ Use CDP insights to update 2026 ESG roadmaps (e.g., setting plastics reduction targets).
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The Bottom Line
CDP reporting in 2025 is not just about transparency—it’s a strategic lever for resilience and growth. Organizations that act early, align with global standards, and integrate CDP into broader ESG strategies will turn disclosure into a competitive advantage. With the September deadline looming, the time to start is now.