How the CDP Scoring System Works
CDP (formerly Carbon Disclosure Project) collects environmental data from thousands of companies each year and evaluates it using a systematic scoring methodology. Yet many companies do not fully understand why they received a particular score. Scoring is not a pass-fail exam — it is a four-tiered, cumulative assessment process.
According to CDP's Technical Note on Scoring Methodology, the scoring process is designed to "reflect where companies are on their environmental management journey" (CDP, "Technical Note on Scoring Methodology," 2023). Each level builds upon the previous one, meaning no tier can be skipped.
The Four Scoring Levels
Disclosure: D and D-
This is the starting point of the journey. Here, CDP evaluates the company's basic transparency: how much of the questionnaire was answered? Was data provided?
A D- score indicates that the company responded to the questionnaire but left critical questions blank or provided minimal data. A D score indicates that basic data exists but has not yet been translated into a management structure.
According to CDP's Scoring Introduction 2023, disclosure-level questions measure "the company's basic data availability and transparency level on environmental topics" (CDP, "Scoring Introduction 2023," p.4).
Typical D/D- causes:
- Leaving many questionnaire questions unanswered
- Not reporting emissions data
- Keeping scope information unclear
Awareness: C and C-
The awareness level demonstrates that the company has identified and measured environmental issues. Emissions data exists, risks and opportunities have been identified, but a systematic management approach has not yet matured.
Companies at the C level have typically prepared a GHG inventory and reported Scope 1 and 2 emissions, but have not yet taken steps toward target setting, verification, or strategic integration.
Common gaps preventing the move from C to B:
- No emissions reduction targets set
- Scope 3 emissions not calculated or very limited
- Board-level climate oversight not defined
- No third-party verification conducted
Management: B and B-
The management level demonstrates that a company is not merely measuring its environmental impacts but actively managing them. Emissions reduction targets have been set, risk management processes are in place, and data is being verified.
According to the CDP Climate Change 2024 Questionnaire Guidance, reaching the management level requires companies to present "evidence demonstrating that environmental management actions have been implemented" (CDP, "Climate Change 2024 Questionnaire Guidance," 2024). At this level:
- Emissions reduction targets are active
- Scope 3 emissions have been calculated across at least several categories
- Climate oversight responsibility has been assigned at the board or senior management level
- Emissions data has been third-party verified (or verification is planned)
- Climate risks and opportunities are assessed through formal processes
Leadership: A and A-
The A List is CDP's most prestigious tier. In the 2023 cycle, only 346 companies received an A score in the climate change category — roughly two percent of responding companies (CDP, "Scoring Introduction 2023," p.6).
Leadership requires the adoption of best practices and strategic integration:
- Science-based targets (SBTi approved or aligned)
- Comprehensive Scope 3 calculation and reduction strategy
- Existence of a climate transition plan
- Transparency above the sector average
- Advanced management tools such as internal carbon pricing
- Supply chain engagement programmes
Scoring Logic: The Cumulative Structure
The most important feature of CDP's scoring system is that it is cumulative. To receive a Management score, Disclosure and Awareness criteria must first be met. To receive a Leadership score, all lower tiers must be satisfied.
This produces a practical consequence: a company may have very strong management practices, but if it leaves basic disclosure questions blank, it can remain at a C or D score.
The CDP Technical Note explains this as follows: "The scoring process is cumulative. For a company to score at the Management level, it must first meet the thresholds at the Disclosure and Awareness levels" (CDP, "Technical Note on Scoring Methodology," 2023, p.8).
Most Common Reasons for Low Scores
Unanswered Questions
This is the simplest and most common reason. The CDP questionnaire is comprehensive, and each question carries scoring weight. Questions left blank for non-strategic reasons (time pressure, data gaps) directly lower the score.
Lack of Targets
Companies without emissions reduction targets cannot progress to the Management level. CDP evaluates both absolute and intensity-based targets; science-based targets receive the highest scores.
Lack of Verification
Not having GHG emissions data verified by a third party represents a significant loss in the scoring process. At minimum, limited assurance verification of Scope 1 and 2 data is recommended.
Scope 3 Gaps
Not having calculated Scope 3 emissions at all, or having done so in only one or two categories, results in substantial score losses at the Management and Leadership levels.
Governance Gaps
Not having defined climate change oversight responsibility at the board level leads to low scores in CDP's governance questions.
Practical Improvement Strategies
Short Term (For Your Next Cycle)
- Answer the questionnaire completely. Not leaving questions blank maximises the disclosure score.
- Get your Scope 1 and 2 emissions verified. Third-party verification positively impacts multiple scoring categories.
- Set at least one emissions reduction target. A science-based target is ideal but not required; as a first step, any quantitative target makes a difference.
Medium Term (Within Two to Three Cycles)
- Expand Scope 3 calculations. Covering at least four to five categories supports the transition to the Management level.
- Commit to or validate an SBTi target. Science-based targets are the strongest signal for the Leadership level.
- Implement internal carbon pricing. Internalising carbon costs in investment decisions is evaluated as an advanced management practice.
Long Term (Targeting an A Score)
- Publish a climate transition plan. A net-zero target with a concrete roadmap for achieving it.
- Launch a supply chain engagement programme. Encouraging suppliers to respond to CDP and establishing data-sharing processes.
- Benchmark against sector best practices. Review public responses from A-listed companies to benchmark your own approach.
The F Score: The Cost of Not Responding
Companies that are requested to disclose by CDP but fail to respond receive an F score. F stands for "failure to respond" and is interpreted by the public as a lack of transparency. Investors and customers generally view an F score as an indicator of environmental management deficiency.
Responding — even with a low score — is a strategically much stronger position than not responding at all.
Conclusion
The CDP scoring system may appear complex, but its logic is clear: measure, manage, lead. Making concrete progress each cycle relative to the previous one is far more valuable than chasing a premature A target. By understanding the scoring methodology and building a systematic improvement plan, moving from C to B and from B to A is achievable.
Action Item: Review the feedback report from your most recent CDP score. For each low-scoring category, answer the question "what concrete action can I take this cycle?" and identify three priority improvement areas.
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