ESG is much like corporate social responsibility but on a vastly larger and more measurable scale. Companies that are at the forefront of talking about their ESG scores are generating more attention from across the business spectrum, and investors are actively looking for high ESG scoring companies.
Most popular ESG frameworks
There are many reporting frameworks for ESG, and it can feel like a daunting task to begin thinking about reporting. However, finding a framework that could work well for your business can help you get started, showing you where to look and what to report.
Some of the most popular ESG frameworks are the World Economic Forum (WEF), the Global Reporting Initiative, the Sustainability Accounting Standards Board (SASB), the International Integrated Reporting Council (IIRC), the Task Force on Climate-Related Financial Disclosures (TCFD) and the Carbon Disclosure Project (CDP). VinciWorks has created a series of quick start guides to these frameworks.
What is the CDP ESG framework?
CDP operates on an online platform, where companies log in and respond to a questionnaire and make disclosures via the platform. There is a dashboard with the Online Response System (ORS) which contains all of the questionnaires companies might need to answer. These can also be sent to supply chain members. There are questionnaires in three areas: climate change, water, and forests. Once complete, scores from A to D- are given, with different scores for each area: climate change, water, and forests.
CDP offers companies an opportunity to be climate leaders. Disclosed information can be used by investors to make decisions. Having a simple rating also makes it easy for companies to communicate where they are and where they want to get to. For example, a furniture maker who scored a C in the forest section could commit to scoring an A within three years, demonstrating how they want to improve.
Is the CDP ESG framework right for your organisation?
If your organisation is looking for a climate-focused framework, CDP might be the right ESG framework for you.
Also note that CDP can be combined with the other environmental-focused frameworks, such as the TCFD.
Want to learn more? Find out if CDP is the right framework for your organisation by downloading our free quick-start ESG Guide to CDP.
CDP can be combined with the other environmental-focused framework, the TCFD.
Find out if CDP is the right framework for your organisation by downloading our free quick-start ESG Guide to CDP.
Your ESG Guide to: CDP – Carbon Disclosure Project
