In 2025, the Carbon Disclosure Project (CDP) is rolling out one of its most significant updates in recent years—reshaping how companies worldwide, including those in India, report on environmental risks. With CDP aligning more closely with global frameworks like the ISSB, TCFD, and CSRD, Indian businesses must now prepare for more integrated and rigorous reporting.

Whether you’re an ESG leader or just starting out, understanding these changes is crucial. This blog explores the CDP 2025 reporting updates, what they mean for climate disclosure in India, and how your company can stay ahead of evolving global expectations.

What Is CDP and Why Does It Matter?

CDP is a leading global disclosure platform that helps companies, cities, and investors manage their environmental impacts. Thousands of companies globally—including over 100 Indian firms—report through CDP on climate risk, water security, and deforestation.

For Indian businesses, CDP participation:

• Enhances ESG credibility with global investors and customers
• Supports compliance with international supply chain mandates
• Improves internal climate risk awareness and data quality
• Contributes to global climate transparency initiatives

Now, with CDP 2025 changes for Indian companies, the expectations around climate disclosure are rising.

Key CDP 2025 Changes: What Indian Companies Should Know

Here are the major updates to the CDP scoring methodology 2025 and disclosure structure:

1. Single Integrated Questionnaire

CDP is moving to one unified questionnaire covering climate, forests, and water—aligned with the ISSB’s IFRS S2 climate-related disclosures and TCFD recommendations.

This means companies will need to report:

• Governance and oversight of climate risks
• Climate risk and opportunity assessments
• Emissions data (Scope 1, 2, and relevant Scope 3)
• Transition planning and financial impact estimates
• Climate targets and progress

2. Sector-Specific Requirements

Companies will now receive sector-specific guidance, which improves relevance but increases complexity. This is especially important for Indian sectors like cement, steel, textiles, chemicals, and finance—where decarbonization is critical.

3. Greater Emphasis on Data Quality

CDP will reward verified, complete, and comparable data. This includes:

• Use of science-based targets
• Independent third-party emissions verification
• Scenario analysis and physical risk mapping

These updates reflect a broader push toward investment-grade climate data.

How This Impacts ESG Disclosure for Indian Companies

Many Indian companies already disclose ESG information voluntarily or in response to SEBI’s BRSR Core requirements. However, CDP’s changes will push disclosure to a new level of depth and alignment with global benchmarks.

Key impacts include:

• Increased pressure from global buyers and investors to report via CDP
• Need for stronger climate risk governance frameworks
• Importance of integrated ESG data platforms and GHG accounting systems
• Greater scrutiny of climate transition plans and net-zero claims

For export-facing firms, especially those in high-emission industries, aligning with CDP 2025 reporting will soon become non-negotiable.

How to Update CDP Climate Disclosure: A Roadmap for Indian Businesses

If your company is preparing or updating your CDP response, here’s how to align with the climate disclosure updates in India:

1. Conduct a Climate Risk Assessment

Map physical and transition risks across operations and supply chains. Use climate models and engage cross-functional teams.

2. Strengthen Governance Disclosures

Document who in the board or C-suite oversees climate risks and how performance is tracked.

3. Report Emissions Transparently

Disclose Scope 1, Scope 2, and key Scope 3 categories (especially purchased goods, transport, and waste). Seek third-party assurance.

4. Align with Science-Based Targets

Adopt near- and long-term emissions targets validated by the Science-Based Targets initiative (SBTi).

5. Enhance Climate Scenario Analysis

Use tools like NGFS or IPCC pathways to show how your business might perform under different climate futures.

6. Digitize ESG Data Systems

Invest in platforms that allow year-round data collection and CDP-compatible reporting.

CDP Scoring Methodology 2025: What’s New?

CDP’s scoring in 2025 will still follow four levels (Disclosure, Awareness, Management, Leadership), but with enhanced expectations:

If you’re targeting leadership status, the bar is now significantly higher.

Final Thoughts

The CDP 2025 changes for Indian companies are more than a compliance update—they are a strategic shift toward climate-aligned business models. As climate regulation, finance, and supply chains grow more demanding, early movers will gain credibility and long-term resilience.

By embracing these updates, Indian businesses can not only improve their CDP scores but also lead on climate risk management in the region.

Now is the time to update your CDP climate disclosure—because transparency is no longer optional, it’s expected.