Hello, I'm GLEC, a specialized company in carbon emission measurement for the logistics and transportation industry.
If you're managing sustainability reporting for your company, you've probably heard about the CDP (Carbon Disclosure Project). But did you know that 2026 will bring the most significant changes to CDP requirements in its history? Today, I'm going to break down everything you need to know about these changes and how to prepare your company for success.
In this comprehensive guide, you'll learn the seven critical changes coming to CDP 2026, understand the new assessment criteria, and discover actionable steps to improve your company's environmental disclosure score. Whether you're new to CDP or looking to upgrade from your current rating, this post will give you the roadmap you need.
What is CDP and Why Should You Care?
The Carbon Disclosure Project, established in 2000 in the UK, has become the global gold standard for environmental disclosure. Here's a shocking statistic: in 2024, over 24,000 companies worldwide disclosed through CDP, representing a 24% increase from the previous year.
But CDP isn't just about numbers on a spreadsheet. It's about business survival in the modern economy.
Here's why CDP matters more than ever:
Over 330 global corporations now require their suppliers to participate in CDP. If you're part of any international supply chain, CDP disclosure has shifted from "nice to have" to "must have." Companies without adequate CDP ratings are finding themselves excluded from major contracts and partnerships.
The financial implications are equally significant. Companies with strong CDP scores see:
- 35% higher chance of securing investment
- Access to ESG fund inclusion
- Green financing rate advantages (typically 0.5-1.0% lower)
- Premium valuations in M&A scenarios
For Korean companies specifically, the pressure is intensifying. Major conglomerates are cascading CDP requirements down their supply chains, making it a critical factor for export businesses. I've personally witnessed small manufacturers lose contracts with European clients due to inadequate CDP ratings.
The 7 Game-Changing Updates for CDP 2026
1. Essential Criteria Expansion - The New Normal
The most significant change for 2026 is the expansion of Essential Criteria. Previously, these strict requirements only applied to A-list companies. Now, they're mandatory for all companies scoring C or above.
What does this mean for your company? You'll need to have in place:
- Public CDP response commitment
- Risk identification, assessment, and management processes
- Board-level accountability structures
- Board-level competency requirements
- Mandatory target setting
- Supplier engagement programs
- No significant exclusions policy
This isn't just raising the bar - it's changing the entire game. Companies that previously coasted with C ratings will need to significantly upgrade their systems and processes.
2. Mandatory Third-Party Verification - No More Self-Reporting
Starting in 2026, third-party verification becomes mandatory, not optional. Here are the specific requirements:
Scope 1 & 2 emissions: 100% third-party verification required Scope 3 emissions: Minimum 70% third-party verification required
This shift from voluntary to mandatory verification means companies need to budget for verification costs and timeline. Based on my experience, verification can take 6-8 weeks and cost between $50,000 to $200,000 depending on company size and complexity. You'll need verification according to international standards like ISAE 3000 or ISO 14064-3.
3. Nature-Related Disclosures Integration (TNFD Framework)
CDP 2026 expands beyond climate to include nature and biodiversity assessments. The integration of TNFD (Taskforce on Nature-related Financial Disclosures) framework means companies must now report on:
- Biodiversity impact assessments
- Natural capital dependency analysis
- Ecosystem services risk management
- Plastic use and management (currently unscored but will be scored in future)
This is particularly challenging for companies that haven't considered their nature dependencies before. Food companies, for instance, need to assess how climate change affects their agricultural supply chains. Manufacturing companies must evaluate their water dependencies and pollution impacts on local ecosystems.
Understanding CDP's 4-Level Scoring System
Think of CDP scoring like climbing a mountain. Each level represents a significant achievement, but the path gets steeper as you ascend.
Level 1: Disclosure (D Score) - Base Camp
This is where every company starts. Disclosure focuses on transparency rather than performance. To achieve a D score, you need:
- Complete at least 75% of requested information
- Provide basic environmental data
- Show initial awareness of climate issues
At this level, accuracy is less important than completeness. It's about showing up and being counted.
Level 2: Awareness (C Score) - The Foothills
Moving to C requires demonstrating environmental awareness within your organization. You'll need:
- Identified climate risks and opportunities
- Basic governance structures in place
- Understanding of your environmental impacts
- Initial management procedures
This is where many companies plateau, but in 2026, staying at C level will be much harder due to expanded Essential Criteria.
Level 3: Management (B Score) - The Ascent
B score companies show active environmental management. Requirements include:
- Quantitative targets with progress tracking
- Implemented risk management procedures
- Supply chain engagement programs
- Detailed governance structures
- Verified emissions data
Reaching B level typically takes 2-3 years of focused effort and investment in systems and processes.
Level 4: Leadership (A Score) - The Summit
Only 2% of companies achieve A scores. Leadership level requires:
- Science-based targets (SBT) validated by SBTi
- Comprehensive third-party verification
- Industry-leading practices
- Innovative solutions implementation
- Full TCFD alignment
- 1.5°C scenario analysis
A-level companies aren't just managing climate risks - they're leading their industries toward transformation.
Industry-Specific Requirements You Can't Ignore
Different industries face unique CDP requirements. Here's what you need to know for major sectors:
Financial Services
Financial institutions must now measure and report portfolio carbon emissions. This means:
- Assessing financed emissions across investment portfolios
- Mandatory climate scenario analysis
- Green finance product development tracking
- TCFD-aligned risk assessments
One asset manager told me, "We never imagined we'd be responsible for our investments' emissions, but now it's central to our strategy."
Energy & Oil/Gas
These sectors face the strictest requirements:
- Methane emission management plans
- Stranded asset risk assessments
- Renewable energy transition roadmaps
- Detailed capital allocation strategies
Transportation & Logistics
As someone specialized in this sector, I can tell you the requirements are comprehensive:
- Modal emission intensity tracking
- Alternative fuel adoption plans
- Last-mile delivery optimization strategies
- Fleet electrification timelines
Manufacturing
Manufacturers must demonstrate:
- Raw material traceability
- Circular economy strategies
- Energy efficiency improvement targets
- Water management plans
Your 2026 CDP Preparation Checklist
Success in CDP requires planning. Here's your timeline for achieving strong scores in 2026:
Immediate Actions (Q1-Q2 2025)
Start these tasks right now:
- Conduct current data collection system assessment
- Build Scope 1 & 2 emissions calculation systems
- Select and engage third-party verification partners
- Form internal CDP response task force
- Benchmark against industry peers
Medium-term Priorities (Q3-Q4 2025)
Build on your foundation:
- Expand Scope 3 emissions calculation coverage
- Develop science-based targets (SBT)
- Establish supplier data collection systems
- Begin TNFD-related risk assessments
- Implement data quality controls
Long-term Strategic Initiatives (2026)
Complete your transformation:
- Deploy integrated environmental management systems
- Achieve digital transformation and automation
- Implement supply chain carbon management platforms
- Establish continuous improvement processes
- Complete verification and submission
The Bottom Line: Start Now or Fall Behind
CDP 2026 represents a fundamental shift in environmental disclosure requirements. The changes aren't just incremental improvements - they're transformative requirements that will separate leaders from laggards.
Key takeaways for immediate action:
- Third-party verification is no longer optional - budget for it now
- Essential Criteria apply to everyone - no more skating by with minimal effort
- Nature and biodiversity matter - expand your thinking beyond carbon
- Industry requirements are specific - know what applies to your sector
- Preparation takes time - 6 months minimum, 12 months ideal
- Investment is required - expect to spend $100,000-$500,000 for comprehensive preparation
- The payoff is real - better ratings mean better business opportunities
The companies that start preparing now will find CDP 2026 an opportunity for competitive advantage. Those that wait will struggle to catch up.
Remember, CDP isn't just about compliance - it's about building a sustainable, resilient business for the future. The journey to strong CDP scores might seem daunting, but with systematic preparation and strategic investment, your company can join the ranks of environmental leaders.
Next week, I'll share a detailed guide on building your CDP data collection system from scratch. Stay tuned for practical, actionable insights that will transform your environmental reporting.
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For carbon emissions consulting and inquiries, please visit the GLEC website.
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