CDP: What's New in the 2018 Questionnaire

Although changes to the 2018 CDP questionnaire are still under discussion[1], the general outline is taking shape: - the main questions remain the same; - the overall structure of the questionnaire will change, with the addition of new questions; - for certain sectors, the questionnaire will be adapted[2]; These changes are intended to ensure consistency with the TCFD's recommendations published this summer (3) and greater consistency among various reporting initiatives, all by improving the relevance of the information collected. This convergence of reporting “requirements” (hard law or soft law) thus follows this sequence: first focusing on a company’s own emissions (Scopes 1 & 2), then on its value chain (Scope 3), and finally on the resilience of its business model in the face of various scenarios involving major changes (energy transition and climate change). This last point directly echoes the TCFD’s recommendations regarding risk management and strategy development based on various scenarios.[3]. The 2018 CDP questionnaire is expected to include several questions on this topic (see “Further Reading”). However, answering them requires the involvement of the general management, strategy, finance, and risk departments!

Examples of questions to ask yourself, taken from our latest post :

Do you know how demand for your products might change and how your competitive environment might react in the event of a low-carbon trajectory? Are you able to quantify the impact of these trajectories on the company’s finances? Does the Board of Directors’ strategic committee scrutinize the projects proposed by the company’s top management in light of these profound changes? Have you established a process for identifying physical and transition risks related to climate change for your organization? Do you know the sources of greenhouse gas emissions throughout your value chain, both upstream and downstream? Carbone 4, a leader in climate strategy and a CDP-accredited consultant, will support you starting this fall as you begin your planning and preparatory work for the 2017–2018 reporting cycle.

Authors of this article: Alexandre Florentin - alexandre.florentin@carbone4.com and Sylvain Borie - sylvain.borie@carbone4.com

Photo credit: Gajus - Fotolia.com

[1]To participate in the consultation process (through September 15), or simply to access the upcoming questionnaires: www.cdp.net/en/companies/consultation[2]Twelve high-stakes sectors have been identified: Oil & Gas, Electric Utilities, Transportation Services, Transportation Vehicle Manufacturers, Cement, Chemicals, Metals & Mining, Steel,Agricultural Products, Food/Tobacco/Alcohol, Paper & Forestry[3]To learn more about this topic, you can read our article analyzing the TCFD's recommendations here and analysis of current practices here.

For the 12 high-stakes sectors, the following information may be requested in the new questionnaire: Oil & Gas: - operational efficiency - carbon asset mix - climate strategy and flexibility Electric utilities: - Operational efficiency - Generation asset mix - Climate strategy Transportation Services - Advanced Scope 1 and 2 emissions accounting - Fleet efficiency metrics - Low-carbon scenario analysis and transition planning Transportation vehicle manufacturers - Advanced Scope 3 emissions accounting - Operational metrics - Low-carbon scenario analysis and transition planning Cement - Volume-based output and intensities - Breakdown by white and gray cement - Breakdown by clinker capacity and technology Chemicals - Fuel breakdown for company-owned generation - Feedstock source breakdown - Volume-based output and process performance Metals & Mining - Volume-based output and intensities Steel - Process route emission intensities - Production and consumption figures - Production of feedstocks Agricultural commodities - Emissions data from land-use change - Details on management actions to reduce emissions related to farming activities - Data disclosed overall, by commodities at risk of deforestation, or by activities in the value chain Food, Beverage, and Tobacco - Emissions from the production and/or sourcing of raw materials - Emissions and mitigation actions in supply chains and activities across the value chain - Data disclosed overall, by deforestation-risk commodities, or by activities in the value Paper & Forestry - Data on emissions from forestry activities and/or the sourcing of timber, wood, or pulp, and/or the manufacture of wood products and paper - Details on reforestation projects for climate mitigation, in addition to organizations’ direct operations