How Carbon Disclosure Ratings Work?

Business & Management
#1

The use of CDP-administered questionnaires is the core basis for generating carbon disclosure ratings. Companies who participate in this initiative, which will number almost 6,800 by the end of 2020, answer a series of questions specific to their industry on a yearly basis. Following that, the replies are evaluated, graded, and made available to institutional investors and other interested parties.
Companies are divided into groups depending on their understanding and implementation of climate-related changes, according to CDP’s criteria.

A and A- | Levels of leadership

Levels B and B- | Management

C and C- | Levels of awareness

D and D- | Levels of disclosure

F | Insufficient information provided for evaluation