Do you wonder if your company’s CDP score really matters? Or is it just another sustainability box to tick? You’re not alone in asking these questions.
The Carbon Disclosure Project is now one of the world’s top environmental scoring systems. Many companies don’t know what makes a good score.
Your CDP score isn’t just a number. It tells investors, customers, and others how much your company cares about climate action. But here’s the key point: a “good” score is different for each company, and getting better takes more than just filling out forms.
Let’s look at what these grades mean, see how different industries compare, and most importantly, show you how to get better results.
What CDP scores mean
CDP uses grades from D- to A, but the system is more complex than it looks. Your score shows what data you share and how well you manage climate risks and set goals.
- D scores mean you share very little information. Companies with D grades give minimal data about their environmental impact.
- C scores are better and show you understand environmental issues. You start sharing data but don’t have full action plans yet.
- B scores show you’re managing environmental risks well. You have written policies and track some progress.
- A scores are the best and show you’re a leader with the best environmental practices and clear targets.
CDP looks at three main areas: climate change, water, and forests. Each area has specific rules that check if your information is complete, if you understand environmental issues, and how you manage them.
Trained experts review all submissions using standard guidelines. This makes sure all companies are judged fairly and requires proof beyond just claims about environmental work.
Building on this foundation, understanding what constitutes a “good” score becomes much more nuanced when we consider industry context.
What makes a good CDP score for your industry
Context matters a lot when evaluating CDP scores. A B score in oil and gas might be excellent, while the same B score in technology might need improvement.
Heavy industries like mining or steel face more scrutiny due to bigger environmental impacts. In these sectors, a B score often shows real commitment.
Service companies or tech firms might find A scores easier to achieve. Their direct environmental impact is usually lower.
Location also matters significantly. European companies often score higher due to stricter environmental rules and longer reporting experience.
Company size is important too. Large companies have sustainability teams and more resources for higher scores, while smaller companies might struggle with documentation requirements.
Compare your score to similar companies in your industry and region. This helps you set realistic goals and shows real progress to stakeholders who understand your industry’s challenges.
However, even companies with the right context and realistic expectations often stumble due to common pitfalls that can easily be avoided.
Common mistakes that hurt your CDP score
Many companies make the same mistakes that hurt their CDP scores. Here are the most critical errors to avoid:
- Incomplete data submission: Companies often submit partial information thinking CDP will fill in the gaps
- Poor documentation: Many companies do good environmental work but don’t document their decision-making or show board oversight clearly
- Vague target setting: Companies set unclear targets without science-based methods, like “reduce emissions where possible”
- Limited stakeholder engagement: This includes minimal work with suppliers on environmental issues and poor customer communication
- Weak climate risk assessments: Shallow analysis and lack of adaptation strategies are common scoring problems
CDP looks for detailed scenario analysis and wants to see climate risks built into business planning. These mistakes happen when companies treat CDP as just compliance.
Fortunately, there are proven strategies to transform your approach and dramatically improve results.
How to improve your CDP score
Improving your CDP score needs systematic work on data and governance. Start with strong data collection to ensure all environmental data is accurate and complete, with regular checks and clear documentation.
Set science-based targets through SBTi for a big scoring advantage. These targets show you understand climate science and know what action is needed through detailed emissions analysis and specific reduction plans.
Strengthen governance by documenting how environmental issues are part of business decisions. Show board oversight of climate issues, make management clearly accountable for environmental performance, and report regularly on progress.
Work more with suppliers to improve scores across multiple areas. Develop clear environmental requirements, assess them regularly, and help them improve to reduce supply chain environmental risks.
Develop full climate strategies that address both reducing emissions and adapting to climate change. Do thorough climate risk assessments and make detailed adaptation plans that put climate considerations into long-term business strategy.
The best approach treats CDP as part of broader environmental improvement rather than isolated reporting. Companies that build CDP criteria into their environmental systems see better scores over time and build real competitive advantages.
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