Differences between CDP and Kloopify

The article helps visualize CDP’s database offering and how it is positioned in our industry; not quite a competitor of Kloopify but a database offering that does not directly compete in the sustainable procurement space but offers marketing insights.
August 26, 2023

Carbon Emissions 101:

The Role of the GHG Protocol and CDP

In an era where environmental consciousness is no longer a choice but a responsibility, businesses are increasingly seeking ways to measure, manage, and mitigate their carbon emissions

Carbon accounting has become a critical tool for organizations striving to align their operations with sustainability goals and contribute positively to their goals to become a sustainable supply chain. Two prominent players in this arena, CDP and Kloopify, have emerged as go-to platforms for carbon footprint visibility. 

However, it's important to note that the purpose here is not to disparage any entity but rather to shed light on the nuances that differentiate these platforms to give you the best overall choice when considering your data sources and providers. 

The Kloopify aim is to raise awareness and empower procurement leaders with insights that can guide their choice for a robust value chain carbon accounting partner.It's no secret that the Greenhouse Gas (GHG) Protocol guidelines are, at times, applied inconsistently and challenging to navigate. 

Below is a video from the WRI Video Library highlighting corporate survey and topline findings and the plan to update reporting methods because of inconsistencies. 

As organizations seek meaningful ways to address their carbon footprint, the variability in reporting methodologies can lead to confusion and ambiguity. 

GHG is working to improve Scope 3 emissions in the next two years, Why put your company’s goals with outdated methods that leads to rogue data when Kloopify’s platform has the capabilities to provide best-in-class solutions to address Scope 3 emissions? 

It's in this context that our focus shifts to a solution that stands out amidst the noise. Our offering is designed not only to bridge the gaps left by inconsistent protocols but also to provide a meticulously crafted platform tailored to the needs of procurement leaders.

Author’s Goal for the Comparison 

In this blog post, we take a look into a comparative analysis of CDP and Kloopify – two leading carbon visibility platforms where we highlight their respective strengths and approaches. 

The intention is not to speak cheaply on our partners to carbon transparency but to provide a comprehensive view that empowers businesses to make informed decisions. In the case of CDP,  Kloopify does not consider itself a direct competitor of CDP but is more focused on actions that drive impact reductions instead of a repository of information

It’s the difference between going to a library with older books shelved to thumb through a card catalog to find one answer as opposed to a machine learning, software tool with a dashboard that shows you real-time data like; smart monitors and goal tracking. 

Why Choose the Kloopify Approach?

Our emphasis lies in offering a solution that addresses the existing inconsistencies with the application of the Greenhouse Gas Protocol Guidelines to provide a next-level carbon reduction visibility platform that meets the needs of procurement leaders. 

We've meticulously designed a platform that stands as the foundation of reliability and accuracy, two qualities essential for modern procurement leaders dedicated to steering their organizations toward a sustainable future.We hope you enjoy this piece written by Ignacio  Osio a Google scholar and an industry expert, that features CDP and Kloopify, while also exploring the broader realm of climate action solutions. 

Let's equip ourselves with the knowledge to make choices that drive positive change, moving beyond competition and towards a collective goal of environmental stewardship.

Contributions of the GHG Protocol

Over the last two decades, the WRI and WBCSD have laid the foundations for a modern carbon accounting system and developed the vocabulary and scopes used by private and public organizations becoming a de-facto global standard for calculating greenhouse gas emission inventories

Limitations in the use of the GHG Protocol

Scope 3 may represent 80% of total carbon inventory but less than 25% of US companies reported Scope 3 emissions. Corporate Sustainability Reports often omit half of their total emissions as well. 

Source: EPA breaks down the different types of Scope Emissions

Complementary and voluntary frameworks required by investors also fall short on Scope 3: 

Contributions of CDP 

Besides sustainability corporate reports and glossary of terms, thousands of companies disclose their carbon inventories via Climate Change questionnaires to CDP. CDP formerly known as Carbon Disclosure Project is a non-profit that houses a comprehensive database based on voluntary, self-reported data on sustainability actions and indices.

It is important to remember that CDP Climate Change Questionnaires are based on the GHG Protocol, which suffers from the same limitations in use listed above. We’ve created a comparison chart to help visualize the differences.

Misuse of CDP Data Derivatives

Investors also misuse ad-hoc indices partially based on CDP data or similar:

We have made much progress in developing a common language, frameworks and indices to tackle the challenge of climate change across organizations worldwide. 

However, it is important to understand the limitations of the current systems and metrics, which although well-intentioned, frequently fall short in assessing the massive contribution of Scope 3 emissions, particularly around upstream supply chains.

Comparing value propositions: CDP vs. Kloopify

Misuse of CDP data and its common intrinsic errors. Recently, Supply Chain, Sustainability, and Procurement professionals have resorted to CDP to rank supplier performance without being aware of common intrinsic errors in reported CDP data. 

image of cdp errors in the ghg preporting protocol
CDP Venn Diagram of Common Errors

These errors can be grouped into three buckets: report inconsistencies, boundary incompleteness, and activity exclusion: 


How Kloopify harmonizes CDP supplier disclosures 

Kloopify uses an extension of the method described by Klassen and Stoll (Nature, 2021) to harmonize carbon footprints from suppliers. 

We close the gap in carbon footprint from each error source independently to derive the combined correction effect:

How Kloopify closes the gap of supplier-specific primary data 

Aside from harmonizing CDP disclosures and correcting its gaps, errors, and omissions, Kloopify has developed its own powerful methods to calculate emissions, focusing on what is most actionable by companies and organizations.

ghg protocol image that shows the business objectives that leads sustainable value chain
EPA Business Goals for Scope 3 Emissions

This includes Scope 2 and Scope 3 emissions under the categories: 

All of their activities are under the control of the purchasing organization and therefore subject to leverage from purchasing power. Kloopify provides a purchasing emissions baseline and then follows the spirit of the GHG Protocol to refine it, with the important caveat that no gaps are left behind

If primary data becomes available, transactions and inventory are updated accordingly:

Key Differences between Kloopify & CDP

comparison chart of cdp and kloopify platform
Kloopify & CDP Comparison Chart

In summary, looking at key differences between CDP & Kloopify-the main differentiator is that Kloopify builds a bottoms-up, transactions-based approach (similar to a financial infrastructure) in which no item or activity is left out. 

Goods and services and their corresponding suppliers with the largest influence are refined to replace the initial estimates. Progress is then planned, monitored, tracked, and implemented by commodities, suppliers, and buyspaces giving the procurement organization full control and negotiation leverage, armed with the best possible information to systematically advance towards departmental or organizational goals.

Kloopify Creates a Competitive Landscape  

The Kloopify team further outlines the differences between our approach and our competitors. Check out our complete competitive landscape article complete with an easy-to-use chart that shows the different features of our competitors that directly align with our platform capabilities. 

The article helps visualize CDP’s database offering and how it is positioned in our industry; not quite a competitor but a database offering that does not directly compete in the sustainable procurement space but offers insights for marketing pros. 

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