CDP Questionnaire Guide for SMEs: Climate Disclosure Made Practical
The CDP (formerly Carbon Disclosure Project) questionnaire has a reputation for being comprehensive—some might say intimidating. Originally designed for large corporations, CDP has become a standard tool for supply chain climate disclosure, meaning small and mid-sized suppliers increasingly receive requests to complete it.
If your customer has invited you to respond to CDP's Climate Change questionnaire through their supply chain program, you might be wondering whether it's feasible for a company of your size. The short answer is yes, but you need to understand which parts of the questionnaire are relevant to SMEs and what data CDP expects at different maturity levels.
Understanding CDP Supply Chain vs. Direct Disclosure
There are two ways companies engage with CDP. Direct respondents voluntarily disclose to CDP and their responses are publicly scored and shared with investors. Supply chain respondents are invited by customer companies and submit responses specifically for those customers to see.
As a supplier, you're almost certainly in the supply chain category. This distinction matters because supply chain respondents aren't automatically scored publicly (though you can opt in), and CDP understands that suppliers vary significantly in size and resources.
Your response is shared with the customers who invited you, and it contributes to their own CDP scoring. Large companies are scored partly on the percentage of their suppliers who respond to CDP and on those suppliers' emissions reductions, which is why they're pushing you to participate.
The Questionnaire Structure
The CDP Climate Change questionnaire contains roughly 50-60 questions organized into modules. Not all questions apply to all companies—CDP uses conditional logic that shows or hides questions based on your previous answers.
Introduction asks basic information about your company: size, sector, reporting year, contact information. This section determines which subsequent questions you'll see.
Management covers your governance structures for climate issues: who has board-level responsibility, whether you have climate-related policies, how you integrate climate into business strategy. For SMEs, honest responses here are acceptable—you don't need a board-level sustainability committee if you're a 50-person company, but you should indicate who owns climate decisions.
Risks and Opportunities asks you to identify climate-related risks (physical risks like flooding, transition risks like carbon pricing) and opportunities (resource efficiency, new products, regulatory advantages). This section expects strategic thinking more than extensive data.
Emissions is the data-heavy core. You'll report Scope 1 and 2 emissions, ideally broken down by source, and describe your methodology. Scope 3 is requested but acknowledged as challenging; reporting even a few Scope 3 categories demonstrates maturity. You'll need base year emissions to show trends, and CDP prefers third-party verification, though it's not mandatory for smaller suppliers.
Targets and Performance asks whether you have emissions reduction targets, what they are, and how you're tracking against them. Targets should be absolute or intensity-based (emissions per unit of revenue or production). Even modest targets are valuable—what matters is showing intentionality.
Engagement explores how you engage with your value chain on climate. This means both upstream (asking your suppliers about emissions) and downstream (helping customers reduce their product-related emissions).
Scenario Analysis and Financial Planning sections are largely optional for SMEs unless you select answers indicating advanced climate integration. Most small suppliers can skip detailed scenario analysis without penalty.
What Data You Actually Need
The minimum dataset for a credible CDP response includes:
Emissions inventory: At least 12 months of Scope 1 and 2 emissions, calculated using recognized methodologies (GHG Protocol is standard). You need consumption data—fuel used, electricity consumed—and appropriate emissions factors. If you completed a Scope 3 screening assessment covering even the largest categories (purchased goods, business travel), that's a significant plus.
Calculation methodology: Document how you calculated emissions, what factors you used, what data sources you relied on, and what organizational boundary you applied (operational control is most common for SMEs). CDP expects transparency about assumptions and limitations.
Base year: Choose a historical year (typically 2-4 years ago) as your baseline for tracking progress. If you only started tracking last year, that becomes your base year by default—just be clear about that.
Targets (if you have them): Document your commitment, the metrics you're using, target year, and percentage reduction aimed for. CDP recognizes science-based targets (aligned with 1.5°C pathways) as gold standard, but any credible target is better than none.
Governance evidence: Even if you don't have formal climate governance, document who is responsible for climate decisions, how often it's discussed at leadership level, and whether climate is integrated into any business processes.
CDP Scoring: What Matters for SMEs
CDP scores range from D- (disclosure only) through D, C, B, A- (awareness, management, leadership), with F for non-response. Suppliers who submit comprehensive data typically score C or B, with A-list status reserved for companies with exceptional performance and extensive disclosure.
For most SMEs, a B rating is realistic with solid data and documented processes. A requires third-party verification, ambitious science-based targets, extensive Scope 3 reporting, and evidence of value chain engagement—substantial effort that may not be proportional for smaller companies.
What matters for scoring:
Completeness is foundational. Answer all mandatory questions, and tackle optional questions where you have relevant information. Partial responses score lower than complete ones, even if your practices aren't perfect.
Accuracy and methodology are scrutinized. CDP flags inconsistencies, unlikely values (like emissions intensity far outside industry norms), and methodological weaknesses. Using standard calculation tools and being transparent about data gaps scores better than inflating claims.
Ambition and performance mean having targets and showing progress toward them. Absolute reductions are weighted more favorably than intensity improvements, and targets aligned with climate science score higher than business-as-usual trajectories.
Transparency matters significantly. CDP values honest disclosure of challenges and data limitations over glossy claims. Explaining that you're in the early stages of Scope 3 measurement is fine; claiming comprehensive Scope 3 data that seems implausible hurts credibility.
Modules Most Relevant to SMEs
Not every CDP module deserves equal attention from small suppliers. Focus your effort on these priorities:
Introduction and Governance: Complete thoroughly. This establishes credibility and determines which conditional questions appear.
Emissions: This is mandatory and heavily weighted. Invest time in accurate Scope 1 and 2 data. Report what Scope 3 you can, even if it's only a screening estimate.
Targets: If you have any climate commitments, document them fully. If you don't, consider setting even a modest target—"reduce Scope 1 and 2 emissions 20% by 2028" is achievable for most businesses and immediately elevates your CDP profile.
Risk and Opportunity: Don't overcomplicate this. Identify 2-3 realistic risks (energy cost volatility, customer requirements, physical climate impacts relevant to your location) and opportunities (energy efficiency, product innovation, market differentiation).
Engagement: Show any efforts to address climate in your supply chain, even if it's basic supplier questionnaires or contractual clauses. This signals you understand value chain responsibility.
Verification and Scenario Analysis are lower priority unless you're already at that maturity level.
The Practical Challenge: Time Investment
First-time CDP responses typically require 30-50 hours for an SME, concentrated in emissions calculation and understanding what each question is really asking. This assumes you have basic environmental data collection in place.
If you're starting from scratch—no emissions inventory, no tracking systems—add time for data gathering. The silver lining is that this infrastructure serves multiple purposes: CDP, EcoVadis, customer questionnaires, and internal decision-making all draw from the same underlying data.
Tools that centralize ESG data, like ESG Passport, can significantly reduce response time by maintaining emissions data and supporting documentation in one place, ready to pull into CDP's format.
Is CDP Worth It for Your Company?
The answer depends on your customer relationships and market positioning. If a major customer has specifically requested your CDP response, not responding sends a concerning signal about your strategic alignment and may impact future contract decisions.
Beyond customer expectations, CDP participation forces rigor in climate data that benefits you operationally. Companies that measure energy and emissions systematically almost always identify reduction opportunities that save money. The discipline CDP requires—calculating accurately, setting targets, tracking progress—creates accountability that drives performance.
Additionally, as climate disclosure becomes increasingly standard, having CDP experience and historical data creates competitive advantage. When customers raise requirements further, suppliers with mature systems adapt easily while others scramble.
For a small or mid-sized supplier in a carbon-intensive sector (manufacturing, logistics, construction, chemicals), CDP capability is becoming table stakes for working with major buyers. For service-based or lower-impact industries, customer expectations may evolve more slowly, but the trajectory is clear.
The CDP questionnaire is demanding, but it's not designed to exclude smaller companies. It's designed to establish a common standard for climate disclosure across entire value chains. Approach it systematically, focus on data quality over perfection, and treat it as infrastructure investment rather than compliance burden. That mindset makes CDP not only feasible but genuinely useful for building climate resilience into your business.