Understanding CDP and CSRD
The CDP (Carbon Disclosure Project) is an annual voluntary questionnaire that assesses the environmental performance of organisations across themes like climate, water and forests. Its aim is to strengthen the transparency and comparability of environmental data at a global scale.
The CSRD (Corporate Sustainability Reporting Directive), on the other hand, is a mandatory European legal obligation requiring companies to publish detailed information on their ESG impacts, risks and opportunities. It covers the full spectrum of environmental, social and governance topics — well beyond CDP's environmental focus.
Obligation level: voluntary vs regulatory
CDP is non-mandatory, most often triggered by requests from clients, investors or partners. Companies that participate in CDP do so to improve their visibility, meet market expectations and get ahead of future regulations. The CDP score (ranging from A to D or F depending on the source) reflects the level of environmental transparency and management.
The CSRD, by contrast, requires an annual standardised publication with mandatory external verification. Data must follow the ESRS (European Sustainability Reporting Standards), designed to ensure consistency and comparability across the European Union.
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Scope: environment vs full ESG coverage
CDP remains predominantly environmental in scope:
- Climate (carbon strategy, reduction targets, physical and transition risks),
- Water (consumption, scarcity, quality, water-related risks),
- Forests (deforestation, raw material traceability).
CSRD extends this to all three ESG pillars:
- Environment: emissions, resources, pollution, biodiversity, circular economy;
- Social: working conditions, diversity, human rights, value chains;
- Governance: ethics, compliance, decision-making structures and risk oversight.
Reporting frequency and process
CDP follows an annual cycle: the questionnaire opens in mid-June, closes in mid-September, and scores are published at the end of the year. There is no formal obligation to respond, but large companies are strongly solicited every year.
There is no strict "rhythm" for the CSRD, but it is built around annual non-financial reporting, published alongside management reports and consolidated accounts. This annual cadence ensures consistency and continuity between financial performance and sustainability data.
Strategic complementarity between CDP and CSRD
CDP and CSRD are not in competition — they reinforce each other. Participating in CDP helps structure environmental data and build investor dialogue, both of which are essential steps before CSRD compliance.
CDP helps to:
- Identify material climate risks (physical and transition);
- Put in place a climate governance framework;
- Build indicators aligned with IFRS S2 and ESRS E1.
A solid CDP reporting process therefore acts as a springboard towards CSRD, making data collection, traceability and verification easier. For SMEs and mid-sized companies, this step-by-step approach helps anticipate regulatory complexity while building credible ESG performance.
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CDP vs CSRD: Key Takeaways
| Criterion | CDP | CSRD |
|---|---|---|
| Status | Voluntary | Mandatory (European directive) |
| Scope | Environment (climate, water, forests) | Full ESG (environment, social, governance) |
| Frequency | Annual (June–September) | Annual (aligned with financial reporting) |
| Main objective | Environmental transparency and assessment | Regulatory compliance and ESG comparability |
| Verification | Not required | External assurance mandatory |
| Alignments | IFRS S2, ESRS E1 | All ESRS standards |
| Who it applies to | Any company solicited or participating voluntarily | European companies above CSRD thresholds |
| Strategic use | Improve reputation and regulatory readiness | Demonstrate compliance and ESG governance |
| Complementarity | Useful data foundation for CSRD preparation | Legal framework integrating CDP environmental data |
