CDP And EFRAG Align Standards To Simplify Reporting

CDP, the international environmental disclosure system, and EFRAG, the preeminent European corporate reporting authority, have published a landmark move to make corporate sustainability reporting simpler. The two groups launched an in-depth correspondence mapping exercise linking the CDP question bank with the European Sustainability Reporting Standard for climate reporting (ESRS E1). This effort seeks to promote greater transparency, lessen reporting obligations, and allow businesses to effectively meet the EU's sustainability disclosure demands.

The new mapping emphasizes the most important areas of convergence between CDP's popular environmental questionnaire and ESRS E1 standards. These are fundamental elements of climate-related disclosures such as climate change transition plans, emissions goals, gross Scopes 1, 2, and 3 emissions, and internal carbon pricing. Through the identification of these convergences, CDP and EFRAG have given companies a coherent framework that minimizes duplication and simplifies their reporting.

Sherry Madera, CEO of CDP, underscored the significance of this alignment, emphasizing that the initiative goes beyond just simplifying compliance requirements. “We’re proud to unveil this mapping because it shows we’re about more than ticking reporting boxes. We’re about making data useful and cutting the burden for businesses. By connecting ESRS E1 and the CDP question bank, businesses can reduce reporting complexity, access richer climate data, and unlock genuine business value. These insights will drive smarter business strategies, inspire innovation, and fuel the Earth-positive choices we need urgently," she said.

European Sustainability Reporting Standard E1 is an integral part of the EU's larger Corporate Sustainability Reporting Directive (CSRD) that requires corporations to make standard and transparent climate-related disclosures. The recently issued mapping is a critical tool for organizations looking to meet both ESRS and CDP requirements without incurring heavy burdens from parallel reporting frameworks.

Patrick de Cambourg, Chair of EFRAG's Sustainability Reporting Board, highlighted the strategic benefit of this project. "This mapping is a useful tool for companies that are dealing with climate disclosures under the European Sustainability Reporting Standard E1. By showing the correlation between ESRS E1 and the CDP question bank, we promote reporting efficiency by creating commonality and preventing multiple reports. EFRAG continues to be dedicated to promoting interoperability and simplifying the sustainability reporting environment," he added.

This partnership between CDP and EFRAG is part of a greater initiative to establish synergy in corporate sustainability reporting. In the past, companies have struggled to comply with diverse requirements from several regulatory agencies and organizations to report. This commonly led to duplicated effort, raised administration expenses, and variances in information disclosed. With CDP question bank aligned with ESRS E1, businesses are now able to approach sustainability disclosure more efficiently with less complexity to show their commitment to climate actions and remain EU compliant.

For firms already reporting to CDP, this new correspondence mapping streamlines the process of becoming ESRS E1 compliant. It offers a clear point of reference which enables organizations to reuse existing data and reconcile it to European regulatory requirements without needing to develop entirely new reporting frameworks. At the same time, companies targeting ESRS E1 compliance for the first time can use CDP's established structure to construct high-quality climate disclosures with ease.

In addition to regulatory compliance, the initiative has wider implications for business strategy and decision-making. Under growing pressure from investors, stakeholders, and regulators, clear and transparent climate reporting has become an essential consideration in corporate governance. Businesses that are able to effectively embed these standards into their reporting structures can better understand their sustainability performance, determine risks and opportunities, and build stronger long-term resilience against climate-related pressures.

The alliance between CDP and EFRAG also highlights the changing face of sustainability reporting, where interoperability and standardization are becoming critical. As regulations continue to develop, companies need to prepare themselves so that they can fulfill disclosure needs without being bogged down by administrative burden. Through active coordination of standards on which to base reporting, CDP and EFRAG have provided a blueprint for future alliances that seek to establish a more harmonized global system for sustainability reporting.

Forward, the two organizations have vowed to streamline their partnership further in an effort to make reporting even more efficient. They will be pushing towards maximum interoperability among their frameworks, which will ensure that companies are able to go through the complexity of sustainability reporting smoothly without redundancy. This step represents a critical development towards achieving an integrated and more effective system of corporate disclosure to the advantage of not only businesses but also investors, regulators, and the overall global agenda of sustainability.

With climate accountability at the top of agendas these days, this convergence between CDP and ESRS E1 is a key milestone. In streamlining reporting requirements and ensuring more transparency, this initiative assists businesses in driving real impacts toward climate action and realizing business value through better sustainability strategies. With regulatory environments ever-changing, these partnerships will be key to influencing the direction of corporate sustainability reporting in the years to come.