Chris Havers, Director at Acclaro Advisory, shares his thoughts why CDP still plays a critical role.
There’s a growing tendency, especially in more mature organisations, to treat CDP as something that’s already been “done” after another cycle of familiar answers. But this misses the point.
CDP isn’t just about disclosure. It’s a practical way for businesses to build the discipline required to explain environmental issues with the same clarity as financial performance.
With relatively little change to the CDP questionnaire in 2026, there’s less room to argue that things are still evolving, meaning companies are likely to sit back on their disclosure. The more relevant question is now:
Are we prepared for the level of reporting expected under IFRS?
Not just in theory, but in terms of real decisions, trade-offs, and financial outcomes.
The real challenge: translation, not identification
Most companies today are not struggling to identify climate risks, or opportunities, or even dependencies across nature. Those conversations are happening, but where things start to drift is in translation.
The gap between understanding risk and explaining its financial implications is where disclosures lose coherence. This shows up quickly:
- A risk that disappears when financial impacts are discussed
- A mitigation strategy without showing how it changes exposure
- A scenario analysis that doesn’t clearly influence strategy
Individually, each of these answers might make sense. But together, they don’t form a coherent narrative. CDP is effectively preparing companies for IFRS-style reporting as it moves in the same direction.
CDP as a rehearsal for IFRS
CDP is now asking organisations to demonstrate how environmental risks and opportunities move through the business.
This requires joining together elements often owned by different teams:
- Sustainability teams identifying risks
- Finance teams modelling impacts
- Strategy teams making decisions
- Operations teams managing delivery
CDP forces those elements into one place, and more importantly, it forces them to align.
- What are the real risks and opportunities?
- How do they affect revenue, costs, assets or capital?
- What is management doing about them?
- And how does that shape strategy and financial planning?
This is exactly what IFRS sustainability standards expect. CDP simply provides a practical way to rehearse it before it becomes mandatory.
Where things break down
Even in strong organisations, the same friction points appear. Here are some common ones:
Transition plans
Targets are often clear, but the link to capital allocation or financial planning is weak. Without that, the plan remains conceptual rather than something that can genuinely guide decision-making.
Scenario analysis
There’s often a lot of technical effort, but limited impact on decision making.
Nature and biodiversity
As water, forests, biodiversity and now oceans come into scope, the challenge shifts from depth to coherence. Understanding where these issues intersect and genuinely matter to the business is key.
Across all of these areas, the underlying issue is the same. It isn’t a lack of data or effort. It’s a lack of connection.
Why this matters now
CDP continues to align with international standards: ISSB, TNFD, the evolving GHG Protocol while keeping its core structure intact. Companies aren’t being asked to do something completely new. They are being asked to do the same thing, but better. Be more coherent, more transparent and more financially grounded.
This is about making disclosures genuinely useful.
A shift in mindset
The most effective companies we see approaching CDP well are not treating it as a standalone exercise. They’re treating it as part of a broader shift in how the business understands and communicates environmental issues.
They are comfortable with a few things that can feel counterintuitive at first:
- Explaining uncertainty rather than hiding it
- Acknowledging that risks are material before mitigation, even if they are manageable after
- Using ranges and assumptions rather than forcing false precision
- Linking sustainability discussion directly to financial language
None of this requires perfection. In fact, it works best when it doesn’t try to appear perfect. What matters is that the story makes sense.
The real value of CDP
There is a reason CDP continues to sit at the centre of sustainability reporting. It’s not just because of investor demand, although that remains significant. It’s because CDP sits in a space between sustainability and financial reporting that very few other frameworks occupy effectively, and it pre-empts regulatory shifts and prepares business with a soft landing.
Used properly, CDP helps organisations:
- Test how their narrative lands externally
- Identify where internal understanding is fragmented
- Build the discipline needed for future regulatory requirements
In that sense, CDP is less of a reporting obligation and more of a diagnostic tool.
Used well, it highlights not what you don’t know but where your story doesn’t quite line up.
While scoring has become more structured, it does not always reveal whether responses reflect embedded business understanding or siloed inputs.
CDP is where organisations learn to connect risk, finance and strategy, before that expectation becomes embedded in financial reporting itself.
Need support with CDP disclosure?
We have supported a number of organisations with their CDP disclosure, helping to drive stronger scores, enhance credibility and long-term competitive advantage. If you would like to discuss your CDP disclosure in more detail, please get in touch and we’d be happy to arrange a call.
