CDP and EFRAG Announce Interoperability Between CDP and EU Sustainability Reporting

At COP29, CDP and EFRAG unveiled a groundbreaking collaboration to enhance efficiency in environmental data reporting. The partnership focuses on aligning CDP with the European Sustainability Reporting Standards (ESRS), particularly the ESRS climate standard (ESRS E1). This alignment aims to reduce reporting burdens for businesses while fostering greater transparency and accountability.

CDP and European Sustainability Reporting Standards

This collaboration represents a significant milestone for businesses navigating complex sustainability reporting requirements. By harmonizing CDP’s questionnaire with ESRS E1, organizations can streamline their reporting processes and reduce duplication of effort.

Sherry Madera, CEO of CDP, highlighted the importance of this alignment:

"At CDP, we continue to evolve our disclosure system to meet changing market needs, always guided by our 'write once, use many' philosophy. By collaborating closely with standard setters like EFRAG, we're working towards a more efficient global environmental disclosure ecosystem that benefits both reporting organizations and data users alike."

The interoperability benefits both new and existing reporters:

• For ESRS E1 Reporters: It simplifies the process of completing CDP disclosures.

• For CDP Disclosing Companies: It ensures they are well-prepared to meet ESRS E1 requirements.

  
  
  
  

Patrick de Cambourg, Chair of EFRAG’s Sustainability Reporting Board, emphasized:

"Our mission at EFRAG is, in line with the CSRD ambition, to bring a critical contribution to the development of quality and accessible sustainability-related data to foster the sustainable growth of businesses as well as transparency and accountability vis-à-vis all stakeholders. The ongoing work on datapoint mapping is designed to ultimately align the CDP questionnaire with the ESRS disclosures, ensuring users of the CDP platform benefit from a straightforward digital reporting mechanism."

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Related Article: EFRAG Finalizes First Three ESRS Implementation Guidance Documents

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Key Initiatives Driving the CDP-EFRAG Partnership

This partnership is underpinned by several strategic initiatives to enhance the global sustainability reporting ecosystem:

• Comprehensive Mapping Guidance: CDP and EFRAG are set to publish detailed mapping guidance in early 2025. This tool will guide businesses in integrating CDP reporting with ESRS E1, making compliance more accessible.

  
  

• Market Research for Future Alignment: A joint market research project will identify critical ESRS datapoints, informing the next evolution of CDP’s questionnaire and ensuring continued alignment.

• Insights for Decision-Making: CDP will deliver ESRS-aligned response data insights to the market, supporting companies in making informed decisions about their environmental impacts.

• Strengthening Global Adoption of CSRD: The collaboration positions CDP as a key player in supporting global organizations to implement the Corporate Sustainability Reporting Directive (CSRD).

Sherry Madera expressed the broader vision of the collaboration:

"Our valued partnership with EFRAG is rooted in our shared goals of making environmental disclosure more efficient and valuable. The extensive commonality we've identified between CDP's questionnaire and the ESRS climate standard reinforces our commitment to streamlining the reporting process for organizations worldwide."

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Related Article: EFRAG Launces IG 2 Value Chain Implementation Guidance

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The Role of CDP Reporting

With over 90% of European stock market companies already using CDP to disclose environmental data, this partnership leverages a well-established platform to drive broader ESRS adoption. CDP sustainability reporting is increasingly recognized as a vital tool for organizations aiming to navigate regulatory landscapes while enhancing their environmental accountability.

Patrick de Cambourg further noted:

"Aligning CDP’s questionnaire with ESRS creates a seamless reporting mechanism, ensuring data accessibility and fostering sustainable growth. This partnership reflects our commitment to empowering businesses with the tools they need to meet the challenges of sustainability reporting."

The Future of Sustainability Reporting

The collaboration between CDP and EFRAG is more than a technical alignment; it represents a vision for a more cohesive, transparent, and efficient environmental data ecosystem. As the 2025 CDP disclosure cycle approaches, businesses can expect a smoother transition into compliance with ESRS standards.

Through this strengthened interoperability, CDP sustainability reporting not only supports regulatory compliance but also empowers organizations to take actionable steps toward a sustainable future. As Madera concluded:

"Together, we're working towards a more efficient global environmental disclosure ecosystem that benefits reporting organizations and data users alike."

For companies striving to align with emerging sustainability frameworks, this partnership provides the guidance and tools necessary to lead with confidence in a rapidly evolving world. CDP reporting is paving the way for a transparent and accountable corporate future.

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