5 Things Every Logistics Company Must Know About CDP in 2025: The Ultimate Guide to Carbon Disclosure
Hello everyone! Welcome back to GLEC, your trusted partner for carbon emission measurement in the logistics and transportation industry.
"What exactly is CDP, and do we really need it for our logistics business?" This is probably the most common question I've been hearing from logistics executives lately. And honestly, I get it - there's so much talk about environmental reporting these days that it can feel overwhelming.
But here's the thing: 23,000 companies representing two-thirds of global market capitalization are already participating in CDP (Carbon Disclosure Project). And if you're in the logistics industry, this isn't just a nice-to-have anymore - it's becoming essential for your business survival.
What Exactly is CDP and Why Should You Care?
Let me start with the basics. CDP is the global standard platform for environmental information disclosure by companies worldwide. Founded in 2000, it has grown steadily for 25 years and now manages integrated environmental information across five areas: climate change, water resources, forests, plastics, and biodiversity.
The biggest change in CDP 2025 is the completion of the integrated questionnaire system. Previously separate environmental areas have been integrated into one platform, allowing companies to disclose environmental information more systematically and efficiently.
What really caught my attention is the expansion of mandatory requirements. The strict standards that previously applied only to A-grade companies now apply to all companies with C-grade or higher. This means the overall level of carbon disclosure has risen significantly.
The 3 Key Ways CDP is Transforming Logistics
1. Scope 3 Emissions Measurement Becomes Mandatory
The biggest change for logistics companies is the strengthening of Scope 3 emissions management. In CDP's 2025 evaluation, you must input values greater than 0 for major categories to score Management points.
What's even more important is the mandatory use of actual supplier data. If you don't use actual data from suppliers for major categories, you can't achieve Leadership scoring. This means logistics companies can no longer get high evaluations with just estimates.
2. Enhanced Third-Party Verification Requirements
Starting in 2025, 100% third-party verification of Scope 1 and 2 emissions becomes mandatory. Additionally, at least 70% of Scope 3 emissions must be verified to achieve top grades.
For logistics companies, this is particularly challenging because you need to accurately measure and verify all emissions from vehicles and logistics centers scattered across the country, plus complex transportation networks.
3. Introduction of Double Materiality Assessment
You now need to evaluate both the impact on the environment and the dependence received from the environment. For logistics companies, this means analyzing not only the environmental impact of the transportation process but also the impact of climate change on logistics networks.
For example, you need to quantify the financial impact of things like transport route blockages due to typhoons or floods, and vehicle performance degradation due to extreme temperatures.
Why Global Shippers are Demanding CDP from Logistics Partners
Scope 3: The Key to Supply Chain Management
Scope 3 accounts for an average of over 70% of global companies' total emissions. For manufacturing companies especially, emissions from transportation and distribution processes account for a significant portion.
Nike's Supply Chain Sustainability Index (SCSI) is a perfect example. Nike started evaluating the sustainability of logistics service providers in 2012, and since 2017, they've been evaluating sustainability at the same level as cost, service, and risk.
Essential Tool for Supply Chain Transparency
The reason global companies like Apple, IKEA, and others are requiring logistics partners to participate in CDP is clear. To achieve their carbon neutrality goals, they need to accurately understand and manage emissions across their entire supply chain.
Especially for EU companies, the Corporate Sustainability Reporting Directive (CSRD) implemented in 2024 mandates disclosure of environmental impacts across the entire supply chain. This makes detailed environmental information provision at the CDP level inevitable for logistics companies trading with EU companies.
Current Status and Trends of Logistics Industry CDP Grades in 2024
Success of Large Companies vs. Struggles of SMEs
Common characteristics of logistics companies that received A-grades in 2024 CDP results include:
- Systematic carbon emission measurement system construction
- Clear carbon reduction target setting
- Regular progress monitoring
On the other hand, common problems of companies with C-grade or below:
- Lack of accuracy in carbon emission data
- Lack of specificity in reduction strategies
- Insufficient communication with stakeholders
Where Korean Logistics Companies Stand
CJ Logistics achieved B-grade in CDP Climate Change in 2023, leading among domestic logistics companies. However, most small and medium-sized logistics companies still struggle with CDP participation.
According to a Korea Institute of Industrial Technology survey, 78.3% of domestic SMEs don't even know about CBAM, which is shocking considering the full implementation scheduled for 2026.
Business Impact Analysis by CDP Grade
A-Grade: Premium Service Provider Qualification
A-grade logistics companies enjoy the benefit of being selected as preferred partners by global companies. This goes beyond just having an eco-friendly image - it leads to actual business opportunity expansion.
B-Grade: Stable Business Maintenance
B-grade meets the minimum requirements that comply with global standards. You can maintain existing business relationships, but there are limitations in securing new business opportunities.
C-Grade and Below: Increasing Business Risk
Companies with C-grade or below face increasing risk of being excluded from global supply chains. Especially after the full implementation of CBAM in 2026, the impact is expected to be more serious.
Key Challenges for the Logistics Industry in 2025
Improving Data Accuracy Through Digital Transformation
Constructing an accurate data collection system using digital technologies like IoT sensor-based real-time fuel consumption measurement and GPS-based automatic mileage calculation is essential.
Strengthening Supply Chain Cooperation Systems
You need to build an integrated carbon management system among customers, logistics companies, and subcontractors to transparently manage emissions across the entire supply chain.
Securing and Training Specialized Personnel
Securing specialized personnel responsible for carbon emission measurement and CDP report writing is urgent. Training programs for existing employees should also be conducted in parallel.
Practical Implementation Roadmap for CDP Response
Step 1: Current Status Assessment (1-2 months)
- Diagnose current carbon emission status
- Analyze CDP requirements
- Establish response strategy
Step 2: System Construction (3-6 months)
- Build data collection systems
- Introduce measurement systems
- Organize dedicated teams
Step 3: Report Writing (2-3 months)
- Complete CDP questionnaire
- Pursue third-party verification
- Submit and evaluate
My Final Thoughts
2025 will be the year when CDP becomes essential, not optional, for the logistics industry. Carbon disclosure is establishing itself as a key tool that creates new business opportunities beyond simple environmental reporting.
If you start preparing systematically now, you can definitely secure competitiveness. Don't fear change - embrace it as a new opportunity and prepare actively for success.
The logistics industry's future lies not in 'faster and cheaper' services, but in 'more sustainable and transparent' services. The time has come to shift the paradigm from 'just transport well' to 'sustainable transportation services'.
In the next post, I'll dive deep into specific cases of why major companies are demanding CDP from logistics partners and Win-Win strategies.
For carbon emission measurement consultation and inquiries, please visit the GLEC homepage.
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