Climate research provider and environmental disclosure platform CDP and the European Financial Reporting Advisory Group (EFRAG) announced the release of correspondence mapping between the CDP question bank and the EU’s climate standard, ESRS E1, aimed at reducing the reporting burden on companies disclosing under both the CDP platform and the EU’s CSRD regulation.

CDP runs a global environmental disclosure system, enabling investors and other stakeholders to measure and track organization’s performance in key environmental sustainability areas including climate change, deforestation, water security, and plastic-related impact. In 2023, a record of more than 23,000 companies disclosed through CDP, up 24% over the prior year, and representing companies worth $67 trillion, or more than 66% of global market capitalization.

EFRAG was mandated by the European Commission in June 2020 to prepare new EU sustainability reporting standards. The ESRS, developed by EFRAG, and officially adopted by the European Commission in 2023, set out the rules and requirements for companies to report on sustainability-related impacts, opportunities and risks under the EU’s Corporate Sustainable Reporting Directive (CSRD).

The publication follows an agreement in 2023 between the organizations aimed at maximizing alignment between the CDP and ESRS, and the announcement by CDP and EFRAG last year that they have achieved a high degree of commonality and interoperability.

Sherry Madera, CEO of CDP, said:

“We’re 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.”

According to CDP and EFRAG, the new resource will help companies reduce complexity, build reporting efficiency and enhance transparency, enabling ESRS1 reporters to be better equipped to complete CDP disclosures, and companies disclosing through the CDP platform to prepare for CSRD reporting requirements. High levels of interoperability highlighted by the organizations included areas such as transition plans for climate change mitigation, targets related to climate change mitigation, gross Scopes 1, 2, 3 emissions and internal carbon pricing.

EFRAG and CDP said that they plan to continue working together to strengthen interoperability between CDP’s system and the ESRS standards.

Patrick de Cambourg, Chair of the EFRAG Sustainability Reporting Board, said:

“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.”