Report

CDP & the EU Disclosure Regime

Shaping sustainable finance in Europe and beyond

In just a few years, the EU has rolled out several new sustainable finance rules. The aim is to redirect capital flows in Europe to more sustainable economic activities.

Now is the time for implementation, with EU regulations for environmental disclosure taking full effect this year. As environmental disclosure becomes the norm – and the law – CDP continues to guide companies and investors to navigate this new era of sustainability reporting.

The content shown here was produced with the support of the LIFE Programme of the European Union.

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Latest CDP Research: Snapshot on Principal Adverse Impacts (PAI)

CDP analysis finds that comprehensive assessment of negative environment impacts is still lagging, with the biggest gap on nature impacts and risks.

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Stronger Together: Exploring the EU Taxonomy as a Tool for Transition Planning

Report on 2023 EU Taxonomy data, in the first year companies had to report to this.

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Companies preparedness for new European sustainability reporting rules

Analysis of how most CDP disclosing companies are well placed to start reporting under ESRS.

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Resources for companies

CDP’s questionnaires evolve annually to push corporate ambition further, and already enable companies to disclose many of the EU disclosure regime datapoints.

  • CDP’s questionnaires include EU Taxonomy questions, and already cover approximately 20 out of 30 corporate adverse impact indicators on climate, forest, biodiversity, and water.

  • CDP also collects data on eight out of nine principle adverse impacts mandatory under the Sustainable Finance Disclosure Regulation (SFDR).

  • Alignment with the environmental European Sustainability Reporting Standards (ESRS) is under review, and, supported by EFRAG, CDP will offer webinars and guidance in 2024 to support companies with reporting on ESRS datapoints through CDP.

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Navigating Mandatory Sustainability Reporting: BASF's Journey and Challenges with European Reporting Standards

Interview with BASF, one of Europe’s leading chemical companies, about the European Sustainability Reporting Standards (ESRS).

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EFRAG and CDP cooperation

On November 2023, EFRAG and CDP announced a cooperation to drive market uptake of European Sustainability Reporting Standards (ESRS)

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Policy Explainer: EU Taxonomy

CDP Policy Explainer on the EU Taxonomy, including links with CDP’s disclosure system.

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Technical Note: EU Taxonomy

Technical FAQ on the EU Taxonomy and integration of its criteria into CDP questionnaires and scoring

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Front cover of the CDP Policy Explainer on the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) report.

Policy Explainer: CSRD and ESRS

CDP Policy Explainer on the EU Corporate Sustainability Reporting Directive (CSRD) and the EU Sustainability Reporting Standards (ESRS), including links with CDP’s disclosure system

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First slide of CDP's insight Note: CDP's integration of the EU disclosure regime.

Insight Note: CDP's integration of the EU disclosure regime

Get a quick snapshot of the EU disclosure regime and how CDP can support you.

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TCFD Knowledge Hub

Find the resources you need to understand and implement the TCFD recommendations.

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Frameworks for reporting environmental information

The Climate Disclosure Standards Board (CDSB) was an international consortium of business, environmental and social NGOs, committed to advancing and aligning the global mainstream corporate reporting model. It was consolidated into the IFRS Foundation to support the work of the newly established International Sustainability Standards Board (ISSB) in 2022.

The front cover of CDP's EU Environmental Reporting Handbook.

CDSB Handbook: EU Environmental Reporting

What does environmental reporting look like in line with the EU NFRD?

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Front cover of CDSB Framework Application guidance for climate-related disclosures.

CDSB Framework: Application guidance for climate-related disclosures

Assisting companies in the disclosure of material climate-related information in the mainstream report.

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Front cover of CDSB Framework Application guidance for water-related disclosures.

CDSB Framework: Application guidance for water-related disclosures

Assisting companies in the disclosure of material water-related information in the mainstream report.

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Front cover of CDSB Framework Application guidance for biodiversity-related disclosures.

CDSB Framework: Application guidance for biodiversity-related disclosures

Assisting companies in the disclosure of material biodiversity-related information in the mainstream report.

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Front cover of CDSB Template Biodiversity and Water Reporting Templates.

CDSB Template: Biodiversity and Water Reporting Templates

The reporting templates illustrate how to disclose biodiversity and/or water sustainability-related risks and opportunities to investors, lenders, and other creditors (users) in a connected way.

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The CDSB Application Guidance for water is also available in Portuguese, Spanish and French.

The CDSB Application Guidance for biodiversity is also available in Portuguese, Spanish and French.

Resources for investors

We help investors get the EU Taxonomy and Sustainable Finance Disclosure Regulation (SFDR) data they need to comply with their own mandatory reporting requirements and make sustainable investment decisions.

Front cover of Below the Surface Snapshot on Principal Adverse Impacts (PAI).

Below the Surface: Snapshot on Principal Adverse Impacts (PAI)

CDP analysis on corporate disclosure of Principal Adverse Impact (PAI) indicators.

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Front cover of Policy Explainer SFDR.

Policy Explainer: SFDR

CDP Policy Explainer on the EU Sustainable Finance Disclosure Regulation (SFDR), including links with CDP’s disclosure system.

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SFDR mapping

SFDR Datapoints Mapping

Explore some of the datapoints in the CDP questionnaire that directly map to metrics that are required to be reported for the SFDR.

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We engage in relevant policy fora and working groups to share evidence and contribute to impact assessment for future improvement of the EU sustainability disclosure regime.

CDP is represented in the 2023-2024 mandate of the EU Platform on Sustainable Finance, an advisory body to the European Commission.

A read background with white text announcing the EFRAG and CDP collaboration.

EFRAG and CDP cooperation

On November 2023, EFRAG and CDP announced a cooperation to drive market uptake of European Sustainability Reporting Standards (ESRS)

Read press release

An image of the report's cover.

Policy Explainer: EU Taxonomy

CDP Policy Explainer on the EU Taxonomy, including links with CDP’s disclosure system.

Download report

Front cover of Policy Explainer SFDR.

Policy Explainer: SFDR

CDP Policy Explainer on the EU Sustainable Finance Disclosure Regulation (SFDR), including links with CDP’s disclosure system.

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Front cover of the CDP Policy Explainer on the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) report.

Policy Explainer: CSRD and ESRS

CDP Policy Explainer on the EU Corporate Sustainability Reporting Directive (CSRD) and the EU Sustainability Reporting Standards (ESRS), including links with CDP’s disclosure system

Read the report

CDSB policy briefings

The Climate Disclosure Standards Board (CDSB) was an international consortium of business, environmental and social NGOs, committed to advancing and aligning the global mainstream corporate reporting model. It was consolidated into the IFRS Foundation to support the work of the newly established International Sustainability Standards Board (ISSB) in 2022.

Timeline European corporate reporting policy towards mandatory and standardised reporting requirements from April 2021 to January 2026.

Timeline: European corporate reporting policy towards mandatory and standardised reporting requirements

The timeline summarises key developments ahead that relate to EU corporate reporting policy, linked to the review of the Non-Financial Reporting Directive by the Corporate Sustainability Reporting Directive and the development of European sustainability reporting standards.

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CDSB Briefing: From theory to practice, the role of supervisors in improving corporate reporting in the EU

This paper aims to discuss the critical role supervision plays to strengthen corporate sustainability disclosures and prevent greenwashing. It also provides resources and practical recommendations to national supervisors.

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CDSB Briefing: Implications of climate science for financial markets

Synthesis of the UN Intergovernmental Panel on Climate Change's Global Warming of 1.5°C special report for financial policymakers.

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CDSB Briefing: Why companies need to improve their water-related disclosures

This summary for EU policymakers provides an overview of the information presented in the ‘Water Application Guidance’, which was produced to assist companies in the disclosure of water-related financial information in the mainstream report.

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CDSB Briefing: Why companies need to improve their biodiversity-related disclosures

This summary for EU policymakers provides an overview of the information presented in the ‘Biodiversity Application Guidance’, that was developed to assist companies in the disclosure of biodiversity-related financial information in the mainstream report.

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CDSB Briefing: Why companies need to improve their biodiversity-related disclosures

This summary for EU policymakers provides an overview of the information presented in the ‘Biodiversity Application Guidance’, that was developed to assist companies in the disclosure of biodiversity-related financial information in the mainstream report.

Read the briefing

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CDSB Summary: Review of environmental and climate-related disclosures under the EU Non-Financial Reporting Directive

The summary aims to inform policymakers of the changes needed to improve environmental disclosures under the Directive, to ensure it meets its purpose of increasing the relevance, consistency and comparability of company reporting, based on the findings of the ‘Falling Short?’ report.

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Further research

Explore reviews of companies’ compliance with the Non-Financial Reporting Directive (NFRD) in 2020 and 2021. Country-specific briefings and thematic research are also available below, providing evidence to support the development of guidance and training in order to drive high quality uptake of non-financial reporting requirements.

CDP’s role in accelerating the market uptake of the EU disclosure regime

The European Union (EU) disclosure regime represents a comprehensive framework aimed at promoting sustainable investment and increasing transparency in the financial market.

This framework includes several key regulations: the EU Taxonomy, a classification system providing a common language and clear criteria for determining whether an economic activity is environmentally sustainable; the Corporate Sustainability Reporting Directive (CSRD), requiring companies to disclose detailed information on how sustainability issues affect their business and how their business impacts people and the environment; and the Sustainable Finance Disclosure Regulation (SFDR), mandating financial market participants and financial advisers to disclose specific ESG information related to financial products.

Under the FinACTION project, an EU LIFE funded project which works to drive market uptake and ambition of the EU disclosure regime, CDP drives market uptake of sustainable finance frameworks and scales EU ambition through our disclosure system, while engaging companies to disclose in line with these regulatory requirements and a science-based transition to a net-zero and nature-positive economy. The work ranges from measuring pressure points on climate and nature (adverse impacts) to integration of sustainable finance taxonomies into the CDP questionnaire. For an overview of the FinACTION project and its impacts, read this report or the final project report submitted to CINEA.

CDP has always been supportive of the development of impactful and high-quality disclosure standards and frameworks to provide clarity, increase compliance and support companies in their reporting needs, in line with our mission to drive transparency and action to tackle the environmental crisis.

As the only global environmental disclosure system, with over 23,200 companies disclosing their climate and nature impacts in 2023 (including nearly 90% of European companies by market value), CDP plays a crucial role in accelerating the implementation of standards and taxonomies at scale.

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