How to Strengthen Your CDP Strategy: Key Insights for 2025 and Beyond

As we move into 2025, companies must adapt to CDP’s enhanced sustainability reporting framework by addressing key gaps in climate transition plans, supply chain engagement, and biodiversity strategies to improve their CDP scores and align with emerging global regulations.

As we move into 2025, it's essential for companies to reflect on their sustainability strategies, particularly in light of CDP’s recent structural changes. The 2024 transition to a combined questionnaire across climate, forests, and water security has raised the bar on transparency and accountability. For organisations looking to improve their CDP score in 2025, now is the perfect time to identify gaps, address strategic shortcomings, and align with emerging global regulations.

Companies can strengthen their CDP responses by proactively addressing common gaps and preparing for the increased focus on climate transition plans, environmental dependencies, and supply chain decarbonisation.

Download The 2024 CDP Factsheet to stay informed about current CDP developments.

Key 2024 Updates to CDP

CDP has enhanced its questionnaires, aligning them with global frameworks to enable businesses to streamline reporting. The updated questionnaires now address relevant environmental themes by sector or business activity, without separating disclosures into distinct categories like Climate Change, Water Security, Forests, Plastics, and Biodiversity. Companies will still receive distinct scores for Climate, Forests, and Water.

Key updates include the following:

  • Integration with Global Standards: The alignment with frameworks like the ISSB’s IFRS S2, EU Taxonomy, and TCFD recommendations helps companies meet regulatory requirements efficiently.
  • Increased Focus on Net-Zero Transition: There is greater emphasis on 1.5°C-aligned targets, net-zero transition plans, and addressing interconnected environmental challenges.

CDP has added questions on biodiversity, environmental dependencies, and risks from plastics and water crises, highlighting the importance of these issues in environmental reporting.

Preparing for Stricter Expectations in 2025

To align with CDP’s stricter expectations, businesses should focus on key areas like:

  • Climate Transition and Emissions Reduction: Ensure your emissions targets are aligned with SBTi’s 1.5°C pathway. This includes incorporating Forest, Land, and Agriculture FLAG) targets for land-intensive sectors and working with suppliers to address Scope 3 emissions.
  • Biodiversity and Nature: Integrating biodiversity objectives into the sustainability strategy is essential, particularly with frameworks like the Kunming-Montreal Global Biodiversity Framework and TNFD.
  • Environmental Dependencies and Risks: Understanding natural assets critical to your operations and strengthening risk management strategies are crucial for managing emerging environmental risks.

Resources to Maximise Your 2024–2025 CDP Score

To achieve a strong CDP score, consider reviewing past disclosures to identify gaps and opportunities for improvement. Align your climate disclosures with TCFD recommendations and develop accurate assessments of Scope 3 emissions. It is also important to outline actionable steps to achieve net-zero and establish ambitious, validated Science-Based Targets (SBTs).

CDP Challenges and Gaps in2024

The CDP questionnaire aims to evaluate a company’s sustainability strategy, focusing on climate-related impacts, water management, deforestation, and biodiversity loss. By identifying the gaps in your previous responses, you can enhance the quality of your disclosures and improve your score for 2025.

Source: EcoAct’s guide to effectively engaging with your supply chain, March, 2024

Here are some of the most common gaps identified in 2024:

  • Insufficient Climate Transition Plans
    Climate transition plans are crucial to demonstrate your organisation’s readiness to meet the goals of the Paris Agreement. In 2024, CDP introduced new essential criteria requiring credible and actionable climate transition plans. These plans must outline your organisation’s strategy for reaching net-zero emissions, covering both short-term and long-term goals.
  • Limited Climate Scenario Analysis (CSA)
    Scenario analysis is essential for understanding and mitigating the potential risks climate change poses to your operations. Many companies in 2024 still lacked comprehensive CSA processes to assess the impact of various climate scenarios on their business.
  • Weak Supply Chain Engagement
    Supply chain emissions represent a significant portion of many companies’ overall carbon footprint. However, many organisations struggle to collect relevant data from suppliers or engage them effectively in decarbonisation efforts.
  • Biodiversity Strategy Gaps
    Despite increasing awareness, biodiversity remains an overlooked element of corporate sustainability strategies. In 2024, companies that failed to integrate biodiversity into their strategic planning were at risk of falling behind.

Click here to read how EcoAct offers biodiversity screenings and insights into transition planning and transformation.

Next Steps for CDP Success

To lead in sustainability reporting, businesses must act now. Review your current strategy to ensure alignment with evolving CDP standards, collaborate with suppliers and investors to reduce emissions and align objectives, and work with sustainability consultants to enhance your reporting quality and address any data gaps.

By embracing CDP’s integrated framework and aligning with global sustainability standards, organisations can achieve leadership status, demonstrate environmental responsibility, and secure long-term stakeholder confidence.