Investors, business partners, regulators. The list of stakeholders asking companies for ESG data is a long one. However, ESG reporting is often a complex matter for companies – and this has implications. „The time and financial resources allocated by a company for reporting environmental objectives can mean that resources are lacking for actual implementation“, says Sherry Madera, CEO of the non-governmental organisation CDP (formerly Carbon Disclosure Project), in an interview with Börsen-Zeitung. Therefore, ESG reporting must be as efficient as possible.

For more than 20 years, CDP has been collecting data and information on topics such as greenhouse gas emissions or water consumption, using standardised questionnaires. Last year, the organisation says that 23,000 companies and 1,100 cities, states, and regions worldwide disclosed data through CDP. Initially, CDP was funded solely by sponsor donations. But now financing comes from other sources such as user service fees.

CDP recently introduced a new disclosure system, which Madera describes as a „milestone“ in the organisation's history. The system aims to help companies fulfill all relevant ESG standards with one data submission. Separate questionnaires on climate data, water, and forest management have now been merged.

CDP collaborates closely with standard setters such as the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) to achieve high alignment of data points. The goal of full alignment has now been reached. „Businesses disclosing data via CDP are entirely aligned with ISSB S2," says Madera.

Next comes the incorporation of recommendations from the Taskforce on Nature-related Financial Disclosures (TNFD). Currently, this process is about one-third complete.

Madera supports as much standardisation as possible in handling environmental data worldwide. „Harmonisation is key“, she believes. EFRAG and ISSB are also working towards an efficient disclosure process. In May, they published a joint document to provide companies with concrete guidance on how to make the disclosure process as efficient as possible.

One point is particularly important to Madera in all discussions about standardisation: „Even if there are still differences, conclusions can already be drawn from the available data and actions can be taken accordingly. Lack of standardisation should not be an excuse.“

According to the organisation, approximately 73% of German companies disclosing their data through the CDP platform are already in line with ISSB S2 requirements. This is significantly higher than the global average of just under 60%. „In comparison to international standards, German companies' disclosures already go much deeper,“ Madera says.

Before joining CDP, the new CEO was employed as Senior Vice President Public Policy at Mastercard, and led the Future of Sustainable Data Alliance. With around 700 employees worldwide, Madera sees CDP at a crucial point in its development, saying that "CDP has long worked to build an ecosystem – this has now been achieved.“

However, the work is not finished – on the contrary. „The role of CDP is more important than ever", states Madera. Data oversight is only one aspect. „It's also about the actions that follow the analysis.“ She intends to incorporate this aspect more strongly into CDP's work in the future. "We are going to raise our voice.“