CDP slashes workforce to address rising costs of upgrades and innovation

CDP, the leading platform for environmental disclosures, is downsizing its workforce by 20% as it focuses on innovations to better serve companies disclosing information and users of its data. The organization has not specified which departments will be affected but stated that the cuts will be spread across regions and will occur this year. In March 2024, CDP had 541 employees in 15 countries.

The decision for layoffs follows a tough year for CDP, which gathers disclosures from over 23,000 companies annually. Challenges included a new questionnaire combining climate, forests, and water information, as well as delays in assigning annual scores to companies. Rising operational costs outpacing income also contributed to the need for spending cuts and a shift towards enhancing technology and processes.

CDP’s transformation in data management will be led by new executives. CEO Sherry Madera, formerly of Mastercard, has appointed Ian Brocklehurst and Kari Stoever to drive product development and growth. The organization aims to reduce submission time by 70%, introducing tailored disclosure requests based on specific needs, like those of the European Union’s sustainability reporting directive or key investors.

Brocklehurst will update systems for accessing CDP data, aiming to improve services for clients like Bloomberg. Enhancing access to sustainability data is crucial amid evolving disclosure policies and standards globally, according to Shannon Joly, CDP’s chief marketing and communications officer. The public platform for viewing CDP disclosures, currently offline, will reopen soon. Joly emphasized the importance of CDP maintaining its role as a trusted source of sustainability data amidst increasing global fragmentation in standards and regulations.