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CDP Climate Change 2018 Scoring Methodology

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business.

Question dependencies

This question only appears if you select “Yes” in response to C2.3.

Response options

Please complete the following table. The table is displayed over several rows for readability.You are able to add rows by using the “Add Row” button at the bottom of the table.

Identifier Where in the value chain does the risk driver occur? Risk type Primary climate-related risk driver Type of financial impact driver Company- specific description Time horizon
Select from:

  • Risk1 - Risk100

Select from:

  • Direct operations
  • Supply chain
  • Customer

Select from:

  • Transition risk
  • Physical risk

See drop-down options below

See drop-down options below

Text field [maximum 2,400 characters]

Select from:

  • Current
  • Short-term
  • Medium-term
  • Long-term
  • Unknown
LikelihoodMagnitude of impactPotential financial impactExplanation of financial impactManagement methodCost of managementComment

Select from:

  • Virtually certain
  • Very likely
  • Likely
  • More likely than not
  • About as likely as not
  • Unlikely
  • Very unlikely
  • Exceptionally unlikely
  • Unknown




Select from:

  • High
  • Medium-high
  • Medium
  • Medium-low
  • Low
  • Unknown




Numerical field [enter a number from 0 to 999,999,999,999 using up to 2 decimal places and no commas]


Text field [maximum 1,000 characters]

Text field [maximum 1,500 characters]

Numerical field [enter a number from 0-999,999,999,999 using a maximum of 2 decimal places and no commas]

Text field [maximum 1,000 characters]

[Add Row]

Primary climate-related risk driver (column 4)

Select one of the following options:

Transition risks
  • Policy and legal: Increased pricing of GHG emissions
  • Policy and legal: Enhanced emissions-reporting obligations
  • Policy and legal: Mandates on and regulation of existing products and services
  • Policy and legal: Exposure to litigation
  • Policy and legal: Other
  • Technology: Substitution of existing products and services with lower emissions options
  • Technology: Unsuccessful investment in new technologies
  • Technology: Costs to transition to lower emissions technology
  • Technology: Other
  • Market: Changing customer behavior
  • Market: Uncertainty in market signals
  • Market: Increased cost of raw materials
  • Market: Other
  • Reputation: Shifts in consumer preferences
  • Reputation: Stigmatization of sector
  • Reputation: Increased stakeholder concern or negative stakeholder feedback
  • Reputation: Other
 Physical risks
  • Acute: Increased severity of extreme weather events such as cyclones and floods
  • Acute: Other
  • Chronic: Changes in precipitation patterns and extreme variability in weather patterns
  • Chronic: Rising mean temperatures
  • Chronic: Rising sea levels
  • Chronic: Other

Type of financial impact driver drop-down options (column 5)

Select one of the following options:

Transition risks
  • Policy and legal: Increased operating costs (e.g., higher compliance costs, increased insurance premiums)
  • Policy and legal: Write-offs, asset impairment, and early retirement of existing assets due to policy changes
  • Policy and legal: Increased costs and/or reduced demand for products and services resulting from fines and judgments
  • Technology: Write-offs and early retirement of existing assets due to technology changes
  • Technology: Reduced demand for products and services
  • Technology: Research and development (R&D) expenditures in new and alternative technologies
  • Technology: Capital investments in technology development
  • Technology: Costs to adopt/deploy new practices and processes
  • Market: Reduced demand for goods and/or services due to shift in consumer preferences
  • Market: Increased production costs due to changing input prices (e.g., energy, water) and output requirements (e.g., waste treatment)
  • Market: Abrupt and unexpected shifts in energy costs
  • Market: Change in revenue mix and sources resulting in decreased revenues
  • Market: Re-pricing of assets (e.g., fossil fuel reserves, land valuations, securities valuations)
  • Reputation: Reduced revenue from decreased demand for goods/services
  • Reputation: Reduced revenue from decreased production capacity (e.g., delayed planning approvals, supply chain interruptions)
  • Reputation: Reduced revenue from negative impacts on workforce management and planning (e.g., employee attraction and retention)
  • Reputation: Reduction in capital availability
  • Other, please specify
 Physical risks
  • Reduced revenue from decreased production capacity (e.g., transport difficulties, supply chain interruptions)
  • Reduced revenue and higher costs from negative impacts on workforce (e.g., health, safety, absenteeism)
  • Write-offs and early retirement of existing assets (e.g., damage to property and assets in "high-risk" locations)
  • Increased operating costs (e.g., inadequate water supply for hydroelectric plants or to cool nuclear and fossil fuel plants)
  • Increased capital costs (e.g., damage to facilities)
  • Reduced revenues from lower sales/output
  • Increased insurance premiums and potential for reduced availability of insurance on assets in "high-risk" locations
  • Other please specify

C2.3a - Scoring criteria

Disclosure scoring criteria

The column 'Primary climate-related risk driver' must be completed for a row to be eligible for Disclosure points.

If three or more risks have been disclosed:

- Points will be awarded in proportion to the number of rows completed (or partially completed). Partially completed rows will not receive full points. A maximum of 12 points are available for this question.

If fewer than three risks have been disclosed:

- Points will be awarded in proportion to the number of rows completed (or partially completed). Partially completed rows will not receive full points. A maximum of 4 points are avaliable per row.

Awareness scoring criteria

If three or more risks have been disclosed:

- Up to 12 points will be awarded in proportion to the number of complete rows (excluding column "Potential financial impact"), with any option except "Unknown" selected in columns "Time horizon", "Likelihood" and "Magnitude of impact"

If fewer than three risks have been disclosed:

- For each complete row with any option except "Unknown" selected in columns "Time horizon", "Likelihood" and "Magnitude of impact" - 4 points

Management scoring criteria

Full Awareness points must have been achieved in C2.2, C2.2a, C2.2b & C2.2c to be eligible for Management points in this question. Management points are awarded for up to 3 complete rows.

For each complete row:

- A company specific description in column "Company specific description" - 1 point
- The risk driver selected in column "Type of financial impact driver" is consistent and has clear rationale with the numerical figure in column "Potential financial impact" and text answer in column "Explanation of financial impact" - 1 point
- "Explanation of financial impact" explains how the financial impact was calculated, and clearly describes the potential impact - 1 point
- Management method" describes an action that is being implemented - 1 point
- Management method contains an example or case study - 1 point

Leadership scoring criteria

To be eligible for Leadership points the risk drivers selected in column "Primary climate related risk driver" must be consistent with the risk types selected in CC2.2c column "Risk type".

1 Leadership point will be awarded for each row that is awarded full Management points (maximum of 3).

Point Allocation


Disclosure numerator
 Disclosure denominator
 Awareness numerator
 Awareness denominator
 Management numerator Management denominator Leadership numerator Leadership denominator
12 12 12 12 15 15 3 3