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    CDP Corporate Data Integration
    • 11 Apr 2022
    • 3 Minutes to read
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    CDP Corporate Data Integration

    • Updated on 11 Apr 2022
    • 3 Minutes to read
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    • PDF
    Article Summary

    The CDP (formerly the Carbon Disclosure Project) is an international non-profit organisation based in the United Kingdom, Japan, India, China, Germany and the United States of America that helps companies and cities disclose their environmental impact. It aims to make environmental reporting and risk management a business norm, driving disclosure, insight, and action towards a sustainable economy. Since 2002 over 8,400 companies have publicly disclosed environmental information through CDP.

    It has the largest primary environmental dataset in the world. CDP data also powers Climetrics, the world’s first climate rating for funds. Covering over 17,000 global funds and ETFs worth €15.9 trillion, Climetrics’ simple 1-5 rating enables investors to integrate climate into their investment decisions. One disclosure to CDP reaches hundreds of investors and procurers and is used by many third-party providers. CDP data is also integrated on the Bloomberg platform, enabling investors to access this information worldwide. MSCI ESG Research collects company-specific direct (Scope 1) and indirect (Scope 2) greenhouse gas (GHG) emissions data from company public documents and/or the Carbon Disclosure Project.

    CDP data access package contains Climate Change, Water, and/or Forest data, the coverage is Global, Europe, by country or by sector, for period only most recent data, historical data or/and next year data and the range is specific data points, or the complete climate, water, and/ or forests dataset(s). You can get it from their product named "CDP CORPORATE DATA".

    CDP Infographics.png

    Other organizations that integrate data from CDP are World Wild Fund, Thomas Reuters, European Commission and many others

    We will see in this case study how Google Finance has integrated with CDP data. 

    Sam Arons from Google worked on the first integration of CDP data with Google Finance. Sam says "One that I’m most proud of is a collaboration with the Google Finance team and the nonprofit Carbon Disclosure Project (CDP) to put companies’ carbon disclosure ratings into Google Finance alongside financial data."

    Sam thought this was important in 2012 because
    Why would investors be interested in a company’s carbon disclosure rating? We thought it would be useful because a company’s emissions, as well as climate change more generally, can pose financial risks -- and investors generally like to understand such risks. These risks can take several forms: from regulatory risks (e.g. legislation placing costs on carbon-intensive activities) to physical risks (e.g. sea-level rise threatening a company’s facilities) to market risks (e.g. consumers switching to another company’s products because they believe that company to be a better environmental steward). All of these factors (and others) go into CDP’s calculation of a company’s carbon score, so it can be a useful metric for investors.

    It's 2022 and the feature is still available on Google Finance. When you search for a company you will see the CDP Ratings in it. You can see that in the bottom right of the image below CDP CLIMATE CHANGE SCORE. In this example the score is A-

    There is an icon next to the Score which takes back to the scorecard. It looks like this. 

    Currently, CDP sends over a link to their clients with access to a server, and you download the data in excel format. You get access to a dataset. Next year you will get updated access. So the data integration is straightforward and it's up to you how you choose to use that information. 

    Tegwen Le Berthe, Head of ESG, CPR AM has to say this
    The corporate environmental data CDP collects forms the backbone of the responsible investing market - without this data, investors wouldn’t have the information they require to offer ESG products and services.

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    References:

    1.  CDP's premium corporate data - https://www.cdp.net/en/data/corporate-data
    2.  Climetrics - https://www.cdp.net/en/investor/climetrics
    3.  CDP's high impact questionnaires - https://guidance.cdp.net/en/guidance
    4.  Updated Carbon Disclosure Ratings in Google Finance - https://green.googleblog.com/2012/05/updated-carbon-disclosure-ratings-in.html
    5.  Apple Inc on Google Finance - https://www.google.com/finance/quote/AAPL:NASDAQ
    6.  CDP Scorecard - https://www.cdp.net/en/responses/865
    7.  MSCI WORLD SECTOR ESG REDUCED CARBON SELECT 20 35 CAPPED INDEXES METHODOLOGY | December 2021 -  https://www.msci.com/eqb/methodology/meth_docs/MSCI_World_Sector_ESG_Reduced_Carbon_Select_20_35_Capped_Indexes_Methodology.pdf
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