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CDP (formally known as Carbon Disclosure Project) runs the largest global disclosure system, covering thousands of companies, cities, states and regions. For decades businesses have voluntarily disclosed their global greenhouse gas emissions to CDP. By creating a means for voluntary disclosure, CDP have stimulated a more sustainable economy, with investors now requiring organizations to report their greenhouse gas emissions and environmental impacts. Their hope is for this transparent reporting to become a business norm around the world. 

The CDP also produces ‘CDP Scores’ on an annual basis. This sees responding companies being scored from a D- to A and aims to incentivise companies to ‘measure and manage’ environmental impacts through the use of CPD questionnaires.  

In GHG reporting and accounting, a ‘base year’ is a year chosen as a basis against which future CDP emissions are compared.

There are three emissions scopes, based of the Green House Gas Protocols (GHG) Corporate Standard. Scope 3 are indirect emissions which result from all other activities and sources that occur in the value chain of the reporting company not covered in scope 2. This includes business travel, commuting, waste, and 3rd party deliveries.

Reporting of all scope 3 emissions is typically not mandatory, unless the organization is subject to a regulation such as the CSRD in the EU.