The CDP (Carbon Disclosure Project) has updated its methodology for the year 2016 regarding the CDP Climate Change questionnaire.
What is CDP?
Through CDP, around 6,000 organizations disclose their greenhouse gases emissions and other environmental KPIs, on the request of the shareholders or their clients. Through measurement, organizations are expected to better manage climate change mitigation.
What are the main changes?
- Change in Climate Change scoring methodology. There will no longer be a disclosure score and a performance band, but one score, which will be located on a four-band scale: leadership (A), management (B), awareness (C), disclosure (D), like already introduced for the CDP water program in 2015. Answers to the CDP questions may be eligible to points in the four scoring categories disclosure, awareness, management, leadership. At least 75% of points must be scored on a certain scoring level in order to advance to the next higher lever.
- Alignment with GHG protocol for Scope 2 emissions. Organizations now need to explain if the figures are market-based or location-based. Location-based means that the calculation is based on a figure reflecting the geographical electrical grid. For market-based, this figure reflects the emissions of the product, or the supplier. As figures need to be comparable, organizations need to select one of the option and convert the figures from the 2015 report or figures for the new 2016 report accordingly
- Renewable energy. Organizations have now the possibility to report their renewable energy production and consumption, as well as any renewable energy targets.
- Science-based targets. Company now need to specify whether their reduction target is science-based, meaning in alignment with climate science recommendations and scenarios, to keep global warming below 2°C.
- Management fee: Companies from North America and Western Europe responding in the CDP Investor Program will be charged a management fee to contribute to the funding of the CDP project. The basic fee is set at 2.475 EUR, with the option to make a higher contribution, or to choose a subsidized, lower fee. First-time responders, as well as companies responding to their customers via the Supply Chain Program do not need to pay a fee.
For more information, please consult:
Changes & Rationale Document: https://www.cdp.net/Documents/Guidance/2016/CDP-Climate-Change-changes-document-2016.pdf
CDP 2016 Climate Change scoring methodology Introduction: https://www.cdp.net/Documents/Guidance/2016/CDP-climate-change-scoring-methodology-2016.pdf
Scoring introduction 2016: https://www.cdp.net/Documents/Guidance/2016/Scoring-Introduction-2016.pdf
Accounting of scope 2 emissions: https://www.cdp.net/Documents/Guidance/2016/CDP-technical-note-Accounting-of-Scope-2-Emissions-2016.pdf
As a CDP official partner, the DFGE is happy to provide more details on these changes and help your organization adapt to them. With our in-depth CDP Response Review, you can make sure you cover all requirements from the new questionnaire and scoring methodology. Please contact us at email@example.com or +49.8192.99733-20