Pursuing Transparency: A CDP Climate Disclosure Journey
02 Jun 2025
An overview of how CDP reporting drives climate transparency and sustainable progress
Introduction
As a sustainability consultant, I’ve seen firsthand how companies grapple with climate transparency. One conversation stands out: An ambitious CEO sat across from me, his expression a mix of determination and concern. His company had recently been requested by a key client to report through CDP (formerly known as the Carbon Disclosure Project) as part of their supplier engagement program. While the company had implemented environmental management systems and complied with national sustainability regulations, this request exposed a gap: they had never formally measured or disclosed their environmental impacts. "Where do we even begin?" he asked. That question marked the start of a transformation toward climate accountability.
The Power of CDP: Why It Matters
CDP is a known standard for corporate climate transparency. It provides a framework for businesses to report on their environmental impact, focusing on climate change, water security, and deforestation. For businesses, participating in CDP is more than a compliance exercise. It’s about building investor confidence, improving operational efficiency, and future‑proofing against regulatory changes.
From Compliance to Commitment
One of my clients, new to CDP reporting, found the process overwhelming at first. The journey started with foundational steps: data collection, greenhouse gas (GHG) inventory development, and climate risk and opportunity assessments. The process required lots of internal engagement and cross-functional coordination. Most metrics were overseen by the client’s EHS (Environmental, Health, and Safety) department, with support from senior management in other departments.
To build Environmental, Social, and Governance (ESG) literacy, we conducted on-site training for key staff. We also established key performance indicators (KPIs) and set Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) targets. Over time this fostered a culture of accountability. To further enhance credibility, the company pursued third-party assurance, strengthening confidence in its data.
The results of all this work? The client received a B- rating in their first reporting year, and proved that strategic action pays off.
A Low CDP Score is a Wake-Up Call
Another client in the chemical sector initially received a D- rating for climate change, falling below the industry average. Committed to improvement, they took decisive action: developing a comprehensive GHG inventory covering Scope 1, 2, and 3 emissions, setting science-based targets, integrating ESG risk assessments, and investing in low-carbon technologies. However, they also faced challenges in ensuring sustainable sourcing of forest-based raw materials such as timber and paper.
In response, we collaborated to map their supply chain, design supplier engagement strategies, conduct supplier audits, and implement traceability systems to ensure compliance. As a result, the company improved its CDP climate change rating from D- to B and significantly raised its “Forests” score setting a new benchmark for transparency within the organization, and an action-oriented approach to building trust with climate-conscious clients.
Charting a Sustainable Path
ESG disclosure is not just about scores and numbers. It’s about transparency, credibility, and action. It’s about embedding monitoring and management systems to identify ESG risks, unlock opportunities, and track performance with precision.
The idea is simple: what gets measured, gets managed. Building a clear path to transparency means designing an ESG framework that’s agile to adopt any reporting structure. Begin early, and watch the benefits unfold.
Intertek can help you develop your ESG framework. We support you through the CDP reporting process, offering data assurance and sharing best practices to guide your sustainability journey.
