Mercer’s CDP “Triple B”: What It Signals to Stakeholders

Key takeaway

Mercer’s CDP “B” scores across Climate Change, Forests, and Water Security indicate management maturity and evidence of governance, not a standalone measure of environmental impact or sector leadership.

At a glance

• Mercer received “B” scores (Management band) across CDP’s Climate Change, Forests, and Water Security themes in the 2025 disclosure cycle.
• A “B” generally signals the presence of environmental management systems and evidence of action. It is not the same as an “A” leadership score.
• For investors and customers, the value lies in improved comparability, documentation, and governance of material environmental risks.
• What’s next: continued improvement in the quality, consistency, and decision-usefulness of disclosure, alongside continued progress across other third-party ESG assessments used by stakeholders.

A management signal that investors can use

In the 2025 disclosure cycle, Mercer received Management-level “B” scores from CDP across Climate Change, Forests, and Water Security. For stakeholders who track ESG as a risk and governance signal, this is best read as evidence of stronger systems, clearer accountability, and more complete documentation behind what the Company discloses.

CDP’s letter grades are often misunderstood as a direct proxy for real-world impact. They are not. CDP primarily scores the quality of disclosure and the management approach described through its standardized questionnaire and methodology. A “B” indicates that governance and management systems are in place and supported by evidence, rather than being limited to risk awareness or basic reporting.

How CDP’s bands work

CDP scoring follows four maturity levels, mapped to letter grades:

• Disclosure (D / D-): completeness of reporting
• Awareness (C / C-): understanding of issues and materiality
• Management (B / B-): evidence of action, processes, and governance
• Leadership (A / A-): leading practice and demonstrable performance

A “B” is a maturity marker. It signals movement beyond identifying risk toward demonstrating that management systems are operating and supported by evidence in the disclosure.

A professional “controls” approach to ESG disclosure

This is Mercer’s second year reporting into CDP, and the results reflect a deliberate focus on discipline in environmental data and documentation. That work is led internally by Mercer’s Controller of ESG, Janelle Salm, whose background in financial auditing brings a controls mindset to sustainability reporting.

Janelle Salm, Controller of ESG, Mercer International

“The context for sustainability has shifted toward a world of accountability,” Salm notes. “My role is to ensure that public disclosures are evidence-based and methodologies are sound.”

Why this matters

For investors, customers, and rating agencies, the core question is practical: does the Company understand material environmental risks and manage them with discipline over time?

In forest products, material risks are closely tied to operational continuity and resource security. As customers advance supply chain reporting and decarbonization requirements, they increasingly require traceable, defensible information from suppliers. Management-level scoring provides stakeholders with greater confidence that disclosure is supported by governance and internal accountability.

This same discipline is also evident across Mercer’s broader third-party ESG evaluations, which stakeholders use to compare risk management quality and disclosure consistency. The direction of travel matters. Sustained improvement across multiple external benchmarks is typically the result of stronger internal systems, not a single reporting exercise.

Systems, evidence, and coordination

A Management-band score is a systems-and-evidence story. It depends on coordination across operations, fiber sourcing, engineering, finance, and sustainability teams. It is not a finish line, and it should not be read as a claim of leadership. It is a confirmation that the foundation is strengthening: controls, documentation, and decision-useful disclosure.

FAQs

What is CDP?
CDP runs a global environmental disclosure system where companies report on climate, forests, and water-related topics using a standardized questionnaire.

What does a CDP “B” score mean?
A “B” generally indicates environmental management. It suggests the Company demonstrates governance and actions to manage impacts, but it is not considered leadership-level performance.

Does a CDP score measure real-world environmental impact?
Not directly. CDP scores assess the disclosure response and the management approach described using CDP’s scoring methodology. It is not a single measure of absolute impact.

What are the four CDP scoring levels?
Disclosure, Awareness, Management, and Leadership.

Why do investors pay attention to CDP?
It provides a comparable view of governance, risk management, and disclosure maturity on material environmental topics.

Why do customers care about CDP?
It can support supplier due diligence and information requests tied to climate and supply chain reporting.