CDP and EFRAG Strengthen Partnership to Enhance Alignment Between CDP Questionnaire and EU Sustainability Reporting Standards
On 12 November 2024, during COP29 in Brussels, CDP and EFRAG announced a major step forward in aligning environmental reporting standards. Their partnership focuses on aligning CDP's environmental questionnaire with the European Sustainability Reporting Standards (ESRS), particularly the ESRS E1 climate standard.
12 November 2024, Brussels: At COP29, CDP and EFRAG presented a press release. It emphasises the strong alignment between CDP's environmental questionnaire and the European Sustainability Reporting Standards (ESRS), with particular focus on the ESRS E1 climate standard.
Key Announcements
The collaboration between CDP and EFRAG marks a major step forward in streamlining environmental reporting processes and reducing the burden on companies preparing for the Corporate Sustainability Reporting Directive (CSRD). The following outcomes were highlighted:
- High Alignment Between Systems: Extensive mapping has demonstrated substantial commonality between CDP’s questionnaire and the ESRS climate standard (ESRS E1). This alignment ensures that organisations disclosing through CDP will also meet key ESRS E1 requirements, and vice versa.
- Guidance Publication: Comprehensive mapping guidance, detailing the connection between CDP disclosures and ESRS standards, will be released in early 2025 ahead of the next CDP disclosure cycle.
- Future Developments: CDP and EFRAG will work to strengthen the alignment of their systems further in 2025, providing updated tools and insights to support reporting companies.
This alignment is particularly beneficial for organisations navigating the increasingly complex sustainability reporting landscape. By ensuring compatibility between CDP and ESRS, companies can save valuable time and resources while maintaining compliance with both frameworks. Furthermore, the partnership reinforces the role of high-quality data in supporting transparency and sustainable decision-making.
Source: CDP and EFRAG Press Release
Benefits for Companies and Stakeholders
The strengthened partnership delivers significant advantages to reporting entities, including reduced complexity, improved data usability, and a clearer path to regulatory compliance. With over 90% of European stock-listed companies already using CDP for environmental disclosures, this alignment cements CDP's role as a key platform for accessing ESRS-aligned data.
Sherry Madera, CEO of CDP, highlighted the importance of collaboration:
“Our partnership with EFRAG is grounded in a shared commitment to streamline environmental reporting. This alignment reduces the reporting burden and ensures organisations can meet evolving regulatory requirements efficiently.”
Future Outlook
Looking ahead, CDP and EFRAG will focus on enhancing the connection between their systems through continued consultation and feedback. The guidance set for release in 2025 will mark a significant step in simplifying reporting processes, while new insights on ESRS-aligned response data will provide valuable tools for stakeholders navigating the CSRD.
Patrick de Cambourg, Chair of the EFRAG SRB, emphasised the long-term impact:
“Aligning CDP’s platform with ESRS contributes to a robust and efficient reporting system. Our goal is to deliver accessible, high-quality sustainability data that supports businesses and stakeholders alike.”
Conclusion
The CDP-EFRAG partnership represents a major advancement in harmonising global sustainability reporting frameworks. By fostering alignment, reducing complexity, and promoting data transparency, this collaboration supports companies as they adapt to the regulatory demands of the CSRD. Together, CDP and EFRAG are paving the way for more streamlined, efficient, and impactful environmental disclosures worldwide.
About CDP
CDP is a global non-profit organisation running the world’s largest environmental disclosure system. In 2023, over 24,000 organisations disclosed through CDP, contributing to a zero-carbon and resilient economy.
About EFRAG
EFRAG develops European Sustainability Reporting Standards (ESRS) to enhance transparency, accountability, and alignment with the EU’s sustainability objectives.
