FRAMEWORK GUIDE
CDP: a Tier-2/3 supplier response guide
CDP (formerly the Carbon Disclosure Project) is a nonprofit platform that collects and publishes standardized environmental disclosures on climate change, water, and forests. It's widely used by investors and large purchasing companies as a channel for requesting environmental data across the supply chain, and responses are scored and published. Many automotive OEMs invite suppliers to respond through CDP's Supply Chain program.
Who asks for it — and why
OEMs and large Tier-1s increasingly ask suppliers to join CDP's Supply Chain program to support their own Scope 3 accounting and supply-chain risk management. Invitations usually arrive by email, and non-response can sometimes flag a supplier for extra risk scrutiny.
Key requirement areas
- Governance and risk management
Covers the decision-making structure for climate issues and the process for assessing risks and opportunities.
- Emissions accounting and targets
Checks the methodology for Scope 1, 2 (and 3) accounting and whether reduction targets have been set.
- Supply chain engagement
CDP's Supply Chain program is the channel purchasing companies use to request environmental data from downstream suppliers.
What Tier-2/3 suppliers should do
For Tier-2/3 suppliers, the practical points are: (1) responding with at least basic information when invited helps preserve the relationship, rather than ignoring the invitation, (2) building a GHG accounting system (Scope 1 and 2) is the natural starting point for a response, and (3) the questionnaire repeats similarly year over year, so building the system once significantly reduces effort in subsequent years. The GHG and energy items in this assessment can help gauge readiness.
9 questions in our free self-assessment are grounded in this framework.
Example questions
- How mature is your company's greenhouse gas (GHG) emissions management?
- Please provide your company's most recent Scope 1 and Scope 2 GHG emissions and total energy consumption.
- How far has your company gone on Scope 3 (value chain) emissions?
- Which energy efficiency and renewable energy measures has your company implemented?
- Which water and effluent management practices does your company operate?
FAQ
- Will not responding to a CDP request end the relationship?
- Immediate termination is uncommon, but response rate itself is increasingly used as a supplier risk indicator by purchasing companies, so not responding is rarely the better option.
- Can I respond without having emissions data yet?
- Yes. Many companies start their first response by simply describing a plan to build an accounting system. What matters is actually starting to build a data-collection system for next year.
Public sources
Informational only — this does not replace an official ESG evaluation. Independent content; not affiliated with or endorsed by any framework organization.