CDP (Carbon Disclosure Project) is an international non-profit organization that assesses companies’ environmental performance, specifically their transparency and actions regarding climate challenges. Each year, it publishes ratings that range from D to A, enabling investors, clients, and other stakeholders to compare companies.
But how are these scores calculated? Here’s a simple and clear explanation.
📝 How are the questionnaire responses graded?
Not every question on the CDP questionnaire is scored (for example, the one about the language selected). The ones that are scored can be evaluated at four levels of environmental maturity:
Disclosure: The company provides basic data.
Awareness: The company understands its environmental impacts.
Management: The company takes concrete action.
Leadership: The company adopts best practices.
CDP uses a step-by-step system: to reach a given level, the previous one must be successfully completed first.
📷 Here's a visual representation of how this progression works:
▶️ Example: Climate Scenarios
Let’s look at a typical question from the questionnaire:
“Does your company use scenario analysis to anticipate environmental impacts?”
This question includes several lines: climate change, forests, water.
👉 Only the "climate change" line is scored.
Disclosure: 3 points possible. Every cell filled in earns part of the points, regardless of the content. For example: completing all 5 cells earns 3 points; 2 out of 5 cells earns 1.2 points.
Awareness: Achievable only if all 3 Disclosure points are earned.
Yes → 1 point
No, but planned within 2 years → 0.5 point
Management: Only "Yes" earns 1 point.
Leadership: Specific scoring criteria (not detailed here).
📊 How is the final score calculated?
Points are grouped by topic (climate, water, forests) and by level. They are then classified into 16 main categories:
Risks and opportunities
Governance
Corporate strategy
Engagement in the value chain
Emission reductions
Low-carbon products
Emissions (Scopes 1, 2, 3)
Energy
Environmental policies
Policy engagement
Targets, verifications, etc.
🎯 From D to A: the final score
The company receives an overall rating (from D to A) based on the following pyramid system:
To move up to the next level, the company must score at least 79% of the points at the level below.
Otherwise, it remains at the current level.
Examples:
Company | Disclosure | Awareness | Management | Leadership | Final Score |
Company 1 | 100% | 82% | 12% | 5% | B- |
Company 2 | 90% | 72% | 4% | 0% | C |
Company 3 | 75% | 51% | 0% | 0% | D |
🔍 Explanation:
Company 1 clears the first two tiers but fails at the third → B-
Company 2 doesn't clear the second level → C
Company 3 fails from the start → D
🚨 Essential Criteria: a Mandatory Filter
Certain levels (particularly Awareness) have essential criteria that must be met.
Even if a company has enough points, it cannot progress if it does not meet these criteria.
🧾 Examples of Essential Criteria:
Identification of Environmental Risks
The company must describe a risk management process.
There must be at least one line about climate change.
Board Oversight
The board must have a member specifically responsible for environmental issues.
If not, the responsibility must be assigned at the managerial level.
💡 These criteria help ensure that commitment is not just on paper, but is actually structured.
⚖️ Weightings by Industry Sector
For the Management and Leadership levels, not all categories are considered equal.
They are weighted according to the company’s sector of activity.
For instance, for an industrial company, greenhouse gas emissions weigh more heavily.
For a financial company, portfolio engagement is more important.
🧠 Why is this system important?
The CDP score has become a key indicator in the decision-making processes of investors, clients, and partners. Excelling in just one area is not enough:
✅ You must have a global, consistent, and progressive approach to all environmental issues.