CDP & ESRS Alignment Comparison: Climate Transition Plans
Enhanced CDP and ESRS Interoperability = More Efficient Reporting
If you’ve been wondering how seamless the transition will be for companies currently disclosing environmental information to CDP to comply with the European Sustainability Reporting Standards (ESRS), CDP and EFRAG are set to provide more insights into this in 2025.
At COP29, EFRAG and CDP announced a significant alignment between CDP’s disclosure platform and the European Standards, specifically the ESRS E1 climate standard. The ESRS E1 standard, which is part of the broader framework under the EU’s Corporate Sustainability Reporting Directive (CSRD), focuses on climate-related disclosures. It guides companies in reporting information on their climate impact, greenhouse gas emissions, and climate-related risks and opportunities.
This interoperability, which results from joint mapping efforts, will be further detailed in a comprehensive guide expected early next year (Spring 2025) in preparation for the 2025 CDP disclosure cycle. By supporting the goals of the CSRD, this collaboration aims to ease the reporting burden for companies, with CDP acting as a key partner for ESRS adoption.
Sherry Madera, CEO of CDP, highlighted the importance of making environmental disclosure more efficient and valuable through the 'write once, use many' philosophy. She noted, “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.”
Mapping Guidance for Companies
Looking ahead, CDP and EFRAG plan to further enhance the alignment of CDP’s questionnaire with ESRS E1 by publishing mapping guidance for the 2025 cycle and conducting market research to refine the alignment based on disclosers’ and data users’ feedback.
This mapping guidance will help organizations understand how the CDP questionnaire aligns with ESRS requirements, particularly ESRS E1. Although the ESRS E1-specific mapping document has not yet been released, it is expected to provide a detailed alignment of CDP questions to corresponding ESRS E1 data points, enabling companies to address both voluntary and mandatory reporting obligations where overlaps exist.
While the CDP questionnaire shares significant commonalities with ESRS E1, it should not be considered as fully satisfying all ESRS E1 requirements. Additional steps may be needed to ensure complete compliance. Therefore, we systematically compared the CDP questionnaire with ESRS E1, focusing specifically on Climate Transition Planning.
Climate Transition Planning
One area of strong alignment between CDP and ESRS E1 is the focus on Climate Transition Plans, which require organizations to disclose their strategic approach to transitioning to a low-carbon economy. According to CDP’s definition, a credible transition plan contains relevant information on how the organization plans to achieve its strategy of pivoting existing operations, assets, and the entire business model toward a trajectory aligned with the latest and most ambitious climate science recommendations.
ESRS E1: Mandates that companies outline clear, time-bound transition plans aligned with global climate goals, such as the Paris Agreement. These plans must address how the organization will reduce greenhouse gas emissions across its operations and value chain, integrate renewable energy, and implement low-carbon technologies.
CDP: Similarly, CDP aims to ensure that organizations disclose credible, actionable, and measurable climate transition plans that reflect their long-term commitment to reducing environmental impacts, aligning with global climate goals, and aligning business models with decarbonization pathways.
How do CDP and ESRS E1 align on transition plans?
The tables below compare the ESRS E1 requirements for Climate Transition Plans with the CDP questionnaire, highlighting their alignment and the extent of their shared focus on key aspects of transition plans. The tables detail the alignment on the following topics:
Full Alignment
GHG Reduction Targets
Decarbonization Levels and Key Actions
Investments and Funding
Sustainable Finance Taxonomy
Link to Business Strategy & Financial Planning
Feedback Mechanisms
Explanation of Progress
Date of Adoption of Transition Plan
Partial Alignment
Locked-in GHG Emissions
Fossil Fuel-related Investments
EU Paris-aligned Benchmarks
For reference, CDP questions from the 2024 questionnaire that specifically mention ‘Climate Transition Plans’ are:
5.2 – “Does your organization’s strategy include a climate transition plan?”
5.4 – “In your organization’s financial accounting, do you identify spending/revenue that is aligned with your organization’s climate transition?”
5.4.1 – “Quantify the amount and percentage share of your spending/revenue that is aligned with your organization’s climate transition.”
However, there are many other CDP questions (as detailed in the tables below) that are directly related to an organization's Climate Transition Plan. For example, these questions include financial planning elements of the transition and the climate-related targets that a company is setting or implementing.
In addition, there are other CDP questions (not included in the tables below) that also support transition planning. These include aspects such as emissions accounting, verification, climate scenario analysis, and value chain engagement on climate-related issues. While these questions are not tightly aligned with the core components of a Climate Transition Plan, they play a role in supporting its overall credibility.
As the ESG reporting landscape evolves, KERAMIDA’s expertise will empower clients to navigate CDP’s questionnaire with ease and leverage the interoperability between CDP and ESRS E1. As a CDP Gold Accredited Provider, KERAMIDA will continue to closely follow updates from CDP and EFRAG, ensuring clients stay informed and aligned with the latest reporting standards.
For information on how we can assist your organization, contact us or call (800) 508-8034 to speak with one of our reporting experts today.
Author
Anastasia Kyrmanidou, Ph.D.
Senior Sustainability Analyst
GRI Certified Sustainability Professional
KERAMIDA Inc.
Contact Anastasia at akyrmanidou@keramida.com