The Carbon Disclosure Project (CDP) is a global project with nearly 90 countries participating and is an international standard for voluntary climate disclosure that requires companies to disclose their carbon management strategies, greenhouse gas emissions, climate-related risks and opportunities, and mitigation targets.

As of 2022, more than 18,730 companies, representing more than half of the global market capitalization, disclose environmental information to investors and nearly 16,000 companies to customers through CDPs

To reduce the burden on companies and improve the consistency of climate-related disclosures, the CDP reflects the Task Force on Climate-related Financials Disclosures (TCFD) and is based on IFRS S2*. Climate-related Financials Disclosures (TCFD) and integrating IFRS S2* into the CDP Environmental Disclosure Platform. The interest of domestic companies is also high, especially between '21 and '22, the number of participating companies has doubled, and currently about 180 domestic companies are participating.  

   * (The Exposure Draft of the IFRS Sustainability Disclosures Standard consists of general requirements (IFRS S1) and climate-related disclosures                  (IFRS S2).

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CDP Participation Process

To submit a CDP, covered entities must complete an entry in the CDP's Online Response System (ORS) between July and August of each year.

① CDP Response Request
CDP Korea requests a response from the registered company

② Prepare and submit the CDP Response
Organizations complete the CDP Response Form and submit it to CDP's Online Response System (ORS)

③ Global CDP Review and Evaluation
CDP Headquarters and CDP Korea evaluate and review the submitted responses and request supplemental information if necessary

④ Disclosure of CDP Assessment Results
Disclose the report and assessment results submitted by the company

How to Evaluate a CDP Corporate Response

The CDP Climate Change assessment consists of four stages, each of which requires a certain number of points to progress to the next stage, with different focuses: Disclosure - Awareness - Management - Leadership

CDP Evaluation Ratings

Your CDP rating depends on your assessment stage. If you don't pass the first stage, Disclosure, you won't receive a rating for Stage 2. If an assessed company does not provide sufficient responses, it will be assigned a grade of F. 

To receive the highest grade of A, the company must pass all assessment stages.