Scoring is applied to most of the company responses to CDP, which are assessed for their level of disclosure. A high carbon disclosure score would indicate a comprehensive response. The response would tend to show clear consideration of business-specific risks and potential opportunities related to climate change and good internal data management practices for understanding GHG emissions. However, the disclosure score does not reflect a company’s actions on climate change mitigation.
Following a pilot project in 2009, the carbon performance score was introduced in 2010 to complement the disclosure score and recognize companies that are taking positive measures on climate change mitigation. CDP acknowledges that the performance scoring process is evolving and recommends that investors review individual company disclosures in addition to performance rankings in order to gain the most comprehensive understanding of company performance.
Companies with the top scores for disclosure qualify to be listed in the Carbon Disclosure Leadership Index (CDLI) for their sample – their group based on market capitalization e.g. the Nordic 200. Top-scoring companies for performance qualify to be listed in the Carbon Performance Leadership Index (CPLI). To qualify for inclusion in either leadership index, a company also has to make its response public. Both scores are based solely on information in CDP responses.