Is CDP right for your business? The benefits and why you might not want to complete it

Thinking about CDP disclosure?  You’re not alone. 

The CDP reporting window for 2025 opens this week and each year thousands of companies report their environmental data through CDP (formerly the Carbon Disclosure Project).  However, while CDP is widely recognised and considered by some as the gold standard for environmental reporting, it isn’t a must-do for every business. 

In this post, we’ll break down what CDP is, the types of companies that really benefit from it, the business value of disclosing, and five reasons why CDP might not be the right environmental disclosure platform for your business (yet). 

What is CDP? 

CDP, previously known as the Carbon Disclosure Project, is a global non-profit organisation that manages the world's largest environmental disclosure system. Companies, cities, and regions use the platform to report on crucial environmental issues such as climate change, water security, and deforestation.  

CDP boasts the world’s most comprehensive dataset on environmental action, supported by over 700 institutional investors representing more than $130 trillion in assets. This connection to investor pressure, ESG ratings, and supply chain resilience underscores its relevance and why it is considered vital for many businesses. 

Who Benefits from Completing CDP? 

1. Investor-facing businesses 

If you’re publicly listed, or seeking capital, CDP disclosure shows stakeholders that you’re managing climate-related risks and opportunities seriously.  CDP further demonstrates climate risk mitigation and signals maturity and transparency in sustainability governance.  

2. High-impact sectors 

Industries like manufacturing, energy, telecoms, construction, and agriculture often face regulatory and reputational scrutiny. CDP helps articulate risk management and sustainability progress. 

3. Supply chain-dependent businesses 

If you’re a supplier to major brands CDP participation can help you retain contracts or win new ones. Many large companies now require their suppliers to disclose through CDP, which enables them to determine their own Scope 3 emissions more easily, so CDP can strengthen business partnerships and secure further contracts.   

4. Demonstrating sustainability leadership 

For companies aiming to lead in ESG or join the CDP A-List, the platform offers a benchmarked, internationally respected way to showcase impact. It can also demonstrate transparency, accountability, and give you a brand differentiator depending on your sector. It can also be useful for companies to benchmark themselves against peers and competitors who are also submitting to CDP. 

5. Regulation-ready organisations 

If you are already submitting a TCFD-aligned (Taskforce on Climate-related Financial Disclosures) or CSRD (Corporate Sustainability Reporting Directive) report, or are planning to, then CDP is a useful stepping stone because it closely maps to those frameworks. The same can be said for future frameworks such as the UK Sustainability Reporting Standards (UK SRS) or the International Sustainability Standards Board (ISSB). 

But…..CDP isn’t for everyone. 

Here are 5 reasons it might not be the right fit right now: 

1. You’re just starting out 

No emissions data? No climate targets yet? No executive-level governance around climate-related activities?  CDP can feel overwhelming without the basics in place. The scoring methodology can also be challenging so although it is designed to incentivise best practices, it can be opaque and difficult to interpret.     

2. You lack internal capacity 

The process is detailed and time-consuming; don’t underestimate the resources (time/people/money) it takes to complete CDP and understand everything that is being asked of you as a company. Without a dedicated cross-functional team or external support, completing it may stretch your resources. It’s also worth bearing in mind that once you start to disclose, it could be difficult to stop disclosing so this could be a long-term annual commitment.   

3. You’re not facing investor or customer pressure 

If you’re a smaller business without disclosure requests, CDP may not offer short-term value and there may be other disclosures that would suit your sustainability goals better. 

4. You’re already reporting elsewhere 

If you disclose via the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), or under CSRD, CDP might duplicate effort unless there’s strategic overlap. Of course, this could be viewed as a benefit and CDP might not add too much effort to your existing disclosure cycle but equally, disclosure fatigue is real so you should question how many data points you want to disclose. You can read more about current UK ESG legislation here.   

5. You prefer qualitative storytelling

CDP is structured and quantitative. If your priorities are culture, community, or narrative impact, a tailored sustainability report might serve you better. 

What to do instead (or before) CDP. 

If CDP isn’t the right platform just yet, you can still make meaningful progress: 

• Start gathering GHG emissions data; we’ve provided some helpful guidance in this article. 

• Conduct a materiality assessment which will indicate which environment, social and governance (ESG) issues are important to you as a business and to your stakeholders, helping define your business case. 

• Review ESG policy and regulatory risks. 

• Build internal awareness of climate-related issues. 

• Publish a short, voluntary ESG or sustainability statement. 

CDP is one tool in the ESG toolkit, and it is undoubtedly powerful.  However, it’s not necessarily always the starting point. 

Choosing a disclosure platform should support your business goals, capacity, and stakeholders. If you’re not sure where to begin, or whether CDP is worth your time and your money, we’re happy to talk you through your options.  You could also try our ESG Strategy Readiness Assessment which will help you to determine what your next steps should be.  

Authored by Sarah Kirton.