How to Navigate the 2024 CDP Reporting Changes
If you are a company that reports to CDP, the leading global platform for environmental disclosure, you may be wondering how to prepare for the major changes that are being rolled out during the 2024 reporting season. The changes will require even seasoned reporters to pause and learn new reporting processes and requirements.
And while the deadline extension may appear to provide reporters more time to do their homework, the additional delayed release of resources will not give reporters many more total reporting days from the system’s online release of the new questionnaire, which occurred the week of June 3, 2024.
In this blog post, we will summarize the key changes to CDP and share some insights from a recent webinar hosted by SCS Consulting Services, a leading sustainability advisory firm that helps companies with CDP and other sustainability reporting and measuring and managing their carbon footprint. We will also provide some tips on how to plan and execute your CDP disclosure for 2024.
What are the key changes to CDP in 2024?
First, CDP is changing their annual reporting timelines from start to finish. The reporting deadline is extended by two months to September 18th from the previous years’ late July deadline, giving you more calendar days to gather information, undergo verification, and report.
CDP is undergoing a major transition to align with the latest standards and frameworks for environmental reporting, such as the IFRS S2 standard for climate-related financial disclosures, the TNFD for nature-related financial disclosures, and the ESRS for European sustainability reporting standards. CDP is also introducing a new disclosure portal with improved functionality and guidance, a dedicated questionnaire for small and medium enterprises (SMEs), and environmental issue-specific modules for different sectors and themes.
Below are some of the main changes that you need to be aware of.
1. Integrated corporate questionnaire: CDP is combining the formerly separate questionnaires for climate change, water, forest, biodiversity, and plastics into one integrated questionnaire.
This means that you will be able to answer questions across different themes in one questionnaire, avoiding duplication and streamlining your reporting process. However, you will still have the option to opt out of reporting on water and forest if they are not relevant to your business. Biodiversity and plastics will be included in the integrated questionnaire but will not be scored in 2024. Climate change will remain the core theme that all companies will be expected to report on.
2. Online system changes: CDP is launching a new online disclosure portal with a redesigned layout and improved functionality. You will be able to work offline, collaborate with your team, and access guidance and scoring information within the portal. You will also be able to check and revise any errors before submitting your disclosure. The portal was expected to make the questionnaires available the week of June 4 and experienced some technical delays throughout the month of June.
While you have until September 18 to complete and submit your disclosure, the minor delays having occurred to date do make the case for you to log in soon and to consider CDP reporting support to better navigate the uncertainty and stress that may arise with any further technical issues.
3. Updated scoring system: CDP is making its scoring system more robust and aligned with the new integrated questionnaire design. The score levels will remain the same (A through F), but the criteria will evolve to reflect the new requirements and standards.
For climate change, CDP is introducing an extra layer of essential criteria that you must meet to progress to the next score level, e.g., from a D to a C scoring level. For forest and water, CDP is introducing a single score that will replace the individual commodity or basin scores. The scoring methodology and guidance has just been released the week of June 24 and is extensive.
For companies without the time to research all the changes, our SCS team is currently doing this deep work and can support you to understand how the scoring rules will impact your anticipated performance level.
4. SME questionnaire: CDP is replacing the minimum questionnaire with a new questionnaire for small and medium enterprises. The SME questionnaire is simplified and shorter and is focused on Climate only. It is open to companies that meet certain criteria based on their headcount and revenue. The SME questionnaire will be scored, but importantly, it is not fully aligned with any mandatory reporting standards, as is the full, integrated Climate disclosure.
5. Environmental issue-specific modules: CDP is developing new modules that will contain specific questions for different sectors and themes. For example, the financial services sector will have a separate module that will cover their portfolio activities and alignment with sustainable finance taxonomy. The sector-specific modules will be housed in Module 12 of the integrated questionnaire, although there will be some sector questions integrated throughout the other modules
How to prepare for CDP disclosure in 2024
With all these changes, you may feel overwhelmed or unsure about how to approach your CDP disclosure in 2024. Here we walk through some steps that you can take to prepare and execute your disclosure effectively.
1. Conduct a scoring gap assessment: Now that the scoring methodology and guidance have been released, you should review them carefully and compare them with your previous disclosure and performance. Identify any gaps or areas that need improvement and prioritize the most important or challenging ones. You should also review the new questions and requirements in the integrated questionnaire and understand how they relate to your business and environmental impacts. If you do not have the time to do this, we can help.
2. Data preparedness: You should start collecting and compiling the data that you need for your disclosure as soon as possible. This includes your greenhouse gas inventory, your water and forest data, your biodiversity and plastics data, and any other relevant information on your environmental management processes, risks, opportunities, targets, and actions. You should also consider verifying your data with a third-party provider, such as SCS Global Services, to ensure its accuracy and credibility. With the September deadline fast approaching, now is the time to secure your verification provider.
3. Review and submission: You should plan and schedule your internal review process well in advance and involve the relevant stakeholders and decision-makers in your organization. You should also decide whether you want to keep any of your data private or public and communicate that clearly to your reviewers. You should aim to submit your disclosure well before the deadline, and check for any errors or inconsistencies before you do so.
How can SCS Consulting Services help with your CDP disclosure?
If you need any support or guidance with your CDP disclosure, SCS Consulting Services is here to help you. SCS Consulting Services is a dedicated sustainability advisory business under the SCS brand, with over a decade of experience in supporting companies with CDP reporting and verification. SCS Consulting Services can help you with:
Gap assessment and strategy: SCS Consulting Services can help you conduct a gap assessment and develop a strategy to improve your CDP performance and score. SCS Consulting Services can also help you align your CDP disclosure with other reporting standards and frameworks, such as IFRS S2, TNFD, ESRS, and SEC.
Data collection and analysis: SCS Consulting Services can help you collect and analyze the data that you need for your CDP disclosure, including your greenhouse gas inventory, your water and forest data, your biodiversity and plastics data, and any other relevant information. SCS Consulting Services can also help you with scenario analysis, target setting, and action planning.
Disclosure preparation and review: SCS Consulting Services can help you prepare and review your CDP disclosure, ensuring that it is complete, accurate, and consistent. SCS Consulting Services can also help you navigate the new disclosure portal and the integrated questionnaire and provide you with best practices and tips for reporting.
Verification: SCS Consulting Services can connect you with SCS Global Services, the sister company of SCS Consulting Services, which is a leading provider of verification services for CDP. SCS Global Services can verify your greenhouse gas inventory, your water inventory, and your other environmental data, and provide you with a verification statement that you can submit to CDP.
If you are interested in learning more about how SCS Consulting Services can help you with your CDP disclosure, please contact us here. We would love to hear from you and support you on your CDP journey.
