Fine-Tuning Climate Transparency: Changes to Expect in the 2024 CDP Process
Every time a food and beverage business moves toward carbon neutrality with ClimateHound, they join a growing and global community committed to climate transparency and action for the planet. CDP has been a longtime leader in this movement.
Founded in 2000, the international not-for-profit began as the Carbon Disclosure Project, asking companies to share data on their emissions and climate change strategy. Over the years, CDP has broadened its mission, seeking transparency about deforestation, water security, biodiversity, plastics, and more, while growing its reach to include municipal and regional governments and other public authorities. Entities in 90 nations around the world, including 23,000 companies, now complete questionnaires about their climate and environmental impacts.
CDP’s process primarily targets large corporate entities with over $50 million in annual revenue, which receive a failing grade from the organization if they receive an invite and do not complete the reporting process. An invite is not required, however, to disclose through CDP.
Ultimately, the most important reason to complete the CDP process – and work with ClimateHound – is to step up as citizens of the planet we share.
If your organization does (or plans to) report through the CDP questionnaire, you may already know that the online portal opened on June 4 and will remain available until October 2. ClimateHound wants you to also be aware of the following updates for 2024:
Change #1:
In the past, impacts related to water, forests, and climate were covered in separate questionnaires, but starting this year, that data-seeking has been combined into one questionnaire to reflect the profound integration of these natural systems and to simplify the user experience.
Change #2:
While its standards were already aligned with the Task Force on Climate-Related Financial Disclosures (TCFD), CDP has brought its approach into further alignment with other reporting standards and frameworks, including those of the International Sustainability Standards Board (ISSB), the Taskforce on Nature-Related Financial Disclosures (TNFD), the European Sustainability Reporting Standards (ESRS), and the Securities and Exchange Commission (SEC).
Change #3:
CDP’s final major innovation for 2024 may represent a great opportunity for some members of the ClimateHound community. A new questionnaire has been developed for small and medium enterprises (SMEs), entities with fewer than 500 employees and an annual revenue of less than $50 million. While this questionnaire is aligned to the version intended for larger entities, it is tailored to SMEs with fewer and simplified questions and more guidance, making it easier for smaller businesses to participate in the CDP reporting process.
You can learn more about CDP and other changes for 2024 on their website. Please reach out to our team if you are looking for assistance disclosing to CDP.
Even when their participation is not required, some companies disclose through CDP and release their results to meet the expectations of investors and gain an edge with buyers looking for suppliers who align with their climate goals. Ultimately, the most important reason to complete the CDP process – and work with ClimateHound – is to step up as citizens of the planet we share.