CDP, the global environmental disclosure platform, and the European Financial Reporting Advisory Group (EFRAG), a leader in corporate reporting, have released a detailed correspondence mapping that highlights a significant alignment between CDP’s question bank and the European Sustainability Reporting Standard for climate disclosures (ESRS E1). This mapping serves as a strategic resource for businesses navigating climate reporting, demonstrating a growing shift towards harmonized global sustainability disclosure frameworks.
The new mapping identifies key commonalities in critical climate disclosure areas, including climate change transition plans, emissions targets, gross Scopes 1, 2, and 3 emissions, and internal carbon pricing. By illustrating these overlaps, CDP and EFRAG provide a streamlined approach for companies that report under both frameworks, reducing the reporting burden and enhancing the accessibility of climate-related data.
Sherry Madera, CEO of CDP, underscored the importance of this initiative:
“We are proud to unveil this mapping because it shows we are about more than ticking reporting boxes. We are about making data useful and cutting the burden for businesses. By bridging ESRS E1 and the CDP question bank, companies can cut reporting complexity, tap into richer climate data, and unlock real business value. These insights will power smarter business strategies, spark innovation, and fuel the Earth-positive decisions we urgently need.”
For businesses operating within the EU and beyond, this alignment offers multiple advantages. First, it ensures consistency in reporting, reducing duplication of efforts and streamlining compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD). Second, it enables companies to leverage comprehensive climate data to support strategic decision-making, enhance risk assessment, and meet investor and regulatory expectations.
Patrick de Cambourg, Chair of EFRAG’s Sustainability Reporting Board, highlighted the strategic benefit of the initiative:
“This mapping provides a valuable resource for companies navigating climate disclosures under the European Sustainability Reporting Standard E1. By illustrating the alignment between ESRS E1 and the CDP question bank, we support reporting efficiency by fostering commonality and avoiding multiple reports. EFRAG remains committed to fostering interoperability and reducing complexity in the sustainability reporting landscape.”
This initiative represents a pivotal advancement in corporate sustainability reporting, particularly in reducing complexity for multinational corporations and European businesses subject to CSRD requirements. Given the increasing regulatory scrutiny on climate disclosures, the ability to align reporting practices with recognized international standards is critical for ensuring compliance and improving corporate transparency.
By establishing interoperability between the ESRS E1 standard and CDP’s question bank, this mapping makes it easier for companies to:
- Align their climate risk assessments with regulatory requirements.
- Standardize emissions data reporting across multiple jurisdictions.
- Integrate sustainability data into corporate decision-making and financial planning.
- Reduce the administrative costs and time associated with multiple disclosures.
The alignment of CDP and ESRS E1 is expected to have a ripple effect across financial markets. Investors increasingly demand high-quality, comparable sustainability data to assess climate-related risks and opportunities. This mapping supports businesses in providing investors with standardized climate disclosures, improving capital allocation towards sustainable investments.
Moreover, for organizations already disclosing through CDP, this initiative simplifies the transition to ESRS E1 compliance, ensuring that their reporting efforts contribute to both investor expectations and regulatory mandates. This further enhances the value of corporate climate disclosures, transforming them from compliance exercises into strategic tools that drive innovation and business resilience.
The CDP-EFRAG collaboration is a step towards broader global interoperability in sustainability reporting. CDP and EFRAG have indicated that they will continue refining their partnership to further enhance reporting efficiency and support businesses in their sustainability journeys. This includes ongoing efforts to enhance the clarity and accessibility of sustainability disclosures, develop further synergies between corporate reporting frameworks and provide guidance and resources to help businesses navigate evolving sustainability regulations.
Read also: Comparative analysis of global sustainability reporting frameworks
In a rapidly evolving regulatory landscape, where businesses must balance compliance with strategic sustainability commitments, such initiatives serve as crucial mechanisms for driving meaningful climate action while reducing administrative burdens.
As corporate sustainability reporting continues to evolve, the alignment between CDP and ESRS E1 marks a significant milestone in the journey toward standardized, efficient, and impactful climate disclosures. By reducing complexity and enhancing data usability, this initiative not only supports businesses in meeting regulatory requirements but also empowers them to harness sustainability data for innovation and long-term resilience.
With increasing pressure from investors, regulators, and stakeholders, organizations that leverage this alignment will be better positioned to navigate the future of climate reporting while driving meaningful environmental and financial outcomes. The ongoing collaboration between CDP and EFRAG signals a promising direction for sustainability reporting, where alignment and interoperability pave the way for more transparent, effective, and actionable climate disclosures.
