[Ed. note: In observance of Veteran’s Day, no blog will be published Friday. We’ll be back at it Monday.]
While EFRAG may be sparring with the ISSB over materiality, other organizations are aligning with EFRAG’s standards. The CDP is the latest organization to announce a cooperation agreement with EFRAG, following GRI in October. CDP appears to be adapting its current system for disclosures to fully align with EFRAG’s ESRS. CDP’s press release states:
“Under the agreement, CDP will explore and implement alignment of its disclosure system with the ESRS as EFRAG provides technical expertise, access and guidance. This collaboration will support the market readiness for quality environmental reporting by accelerating the implementation of the European sustainability reporting standards.
CDP, supported by EFRAG, will begin to offer webinars and detailed technical guidance materials to support companies report on ESRS data points through CDP. Currently used by over 23,000 companies, CDP disclosing companies represent two-thirds of global stock market capitalization and nearly 90% of European market value.”
Having a familiar system like CDP align with EFRAG should help accelerate readiness for CSRD reporting, which utilizes the EFRAG guidance. CDP also seems to be adapting its disclosure platform for use in multiple standards and frameworks, given that they announced last year they would incorporate ISSB standards into their disclosure platform. As the disclosure markets coalesce, it will be interesting to see where standards and frameworks fall on the materiality divide. While some, like CDP, may be able to accommodate both financial and double materiality views, others may be forced to pick a side. The outcomes of those choices will likely determine what standard becomes the global template for sustainability disclosures.
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Photo credit: Timon – stock.adobe.com