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Glossary

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Last updated: 2026 06 24

CDP Water Disclosure

CDP Water Disclosure is an international, voluntary programme run by the non-profit organisation CDP (formerly the Carbon Disclosure Project) that allows companies and organisations to disclose information about how they manage water.

Launched in 2010, it promotes transparency about water use, risks and strategies, generating high-quality data that is relevant to investors and other stakeholders. Since 2024 the water questionnaire has been integrated into CDP's single corporate questionnaire alongside climate change and forests, under the name Water Security.

The programme responds to growing global concern about water scarcity and pollution, linked to climate change and human pressure on resources.

Main objectives

  • Measure and report water use and consumption in a company's own operations and supply chain.
  • Identify risks and opportunities related to water, including physical risks (drought, flooding), regulatory risks and reputational risks.
  • Promote efficient, sustainable management of water, encouraging reduced consumption and improved water quality.
  • Give investors and regulators reliable information to support environmental and financial decisions.

How it works

Each year, CDP sends companies a structured questionnaire covering key aspects such as:

  • Measurement of the volume of water withdrawn and discharged.
  • Assessment of the quality of the water used and of wastewater.
  • Analysis of impacts in areas of scarcity or water stress.
  • Policies, targets and projects to improve water management.
  • Adaptation and resilience to water-related climate risks.

Responses are analysed and scored on a scale that ranges from basic disclosure through to leadership in water management, allowing comparison across sectors and regions.

Benefits for organisations

  • Improved reputation and environmental transparency with the market and society.
  • Reduced operational and legal risks linked to the access, cost or quality of water.
  • Better access to responsible investors and sustainable financial markets.
  • Encouragement of efficient management and process innovation.
  • Readiness for, and anticipation of, stricter environmental regulation.

Global participation and current relevance

CDP is one of the largest environmental disclosure systems in the world. In 2025 more than 23,000 organisations, representing close to two thirds of global market capitalisation, disclosed environmental data through CDP, and thousands of them reported on water security. Many financial institutions use this data to inform their investment decisions.

Integrating water disclosure into CDP's broader environmental questionnaire allows corporate sustainability to be addressed in a more joined-up way.

Relationship with water risk and future planning

CDP Water Disclosure helps make water-related risks visible and promotes data-driven strategies for adaptation and mitigation. It complements tools such as the WRI Aqueduct Water Risk Atlas and standards such as ISO 14046. At Manglai we help companies assess their water and carbon footprints and prepare their sustainability reporting. Discover how Manglai can help you.

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Related terms

See all terms

Carbon Border Adjustment Mechanism (CBAM)

CBAM is the EU's regulatory tool to prevent carbon leakage by charging imports for their embedded carbon, mirroring the EU ETS price. After a transitional phase, its definitive regime began on 1 January 2026.

Carbon Disclosure Project (CDP)

The CDP runs the world's largest environmental disclosure system, scoring companies on climate change, water security and deforestation. Since 2024 it uses a single questionnaire aligned with IFRS S2.

Carbon footprint certification

Carbon footprint certification is the process by which an accredited third party verifies an organisation's or product's greenhouse gas emissions against recognised international standards.

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