Expert Views On Environmental,
Social And Governance Topics
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This blog combines articles from ADEC ESG Solutions, as well as FirstCarbon Solutions (FCS), an ADEC Innovation.
Why is it Beneficial to Consistently Strive for a High CDP Score?
Posted by Amanda Kielian on May 10, 2016, 10:00:00 AM
CDP (formerly known as Carbon Disclosure Project) is an organization that collaborates with shareholders, investors and corporations to bring transparency to greenhouse gas emissions and climate change issues. Every year, thousands of companies worldwide report to CDP. However, reporting to CDP annually is no easy task. Changing methodologies, tough emissions requirements, and lengthy questionnaires can be challenging. Nevertheless, the benefits of continuous reporting make it worthwhile. Familiarizing your company with CDP and the questionnaire can result in better scores, as well as overall cost savings, business innovations, improved efficiency, and better relationships with customers and investors.
Determining a baseline for emissions creates a way to compare emissions and see growth. Continuously tracking emissions makes managing and improving your emissions easier. Reporting positive emissions reductions every year shows that your company takes environmental responsibility and climate change seriously, and proves that you are proactive in making smart business decisions that also save money. Additionally, having the responsibility to report regularly challenges and motivates companies to do better and report more thoroughly and accurately.
Responding to CDP every year increases accurate transparency to shareholders and clients, as well as the public. It creates opportunities for companies to compare how they are disclosing and performing within their CDP Program (Investor or Supply Chain), within their specific industries, as well as on a global scale. Because CDP is recognized worldwide as a leader in carbon disclosure, over 5,000 organizations worldwide respond annually. With such a large number of respondents, competition is fierce and in order to stand out, one must report consistently well year after year.
After responding to CDP and understanding the methodology and expectations, companies will become more familiar with the questionnaire and will understand the requirements of receiving a top score. A high-scoring company has the benefit of being a leader in corporate sustainability and emissions management. They are aware of the risks and opportunities that climate change poses on their company and they have dedicated and innovative management strategies to plan ahead. A high scoring company also understands their impact on the environment with insight into their emissions and they make significant emissions reductions annually. Lastly, they are preparing for the future with a mindset focused on climate change, so they will be prepared and their business will not suffer. A high-scoring company shows that they are able to assess risks, implement change and prepare for the future.
FirstCarbon Solutions (FCS) has scored 15,600+ CDP responses since 2011 and is an expert in both the scoring methodology* and in building streamlined corporate sustainability systems using our state-of-the-art software and data collection services. To find out more about improving your performance, download our white paper, ‘Your Road to Leadership’.
*In accordance with CDP’s conflict of interest policy, FCS does not provide official scoring services for any of our CDP consulting clients.