Each of CDP’s questionnaires, on climate change, water and forests, has an individual methodology that scores responses across four levels: disclosure, awareness, management and leadership. Each level is translated into a single letter, representing a company’s overall score and ensuring it is on its journey to environmental stewardship.
The water score aims to encourage corporate progress towards water stewardship. It indicates a company’s commitment to transparency around its environmental risks and grades its response to those risks. The awareness score measures how comprehensively a company has considered its impacts on water, how these impacts affect people and ecosystems and, conversely, the impacts of water security on its business activities. The management score is based on how much a company has introduced measures associated with good water management, like having company-specific targets or monitoring water use at a facility level.
Leadership status is awarded to companies pursing best practices in water stewardship. These include regularly measuring, monitoring and disclosing more than 75% of all water withdrawals by source, discharges by destination and consumption; requiring suppliers to report water use, risks and management; identifying and capitalizing on water-related opportunities; placing responsibility for disclosure and management at the highest decision-making level in the company; implementing a country-wide, publicly available water policy. Companies eligible for an A are those that achieve 80% of the points available in the leadership band and have submitted a public response.