CDP, the international environmental disclosure platform, has announced plans to separate into two independent but closely aligned entities. The first, CDP, will operate as a commercial organisation supported by global investment firm Permira and will continue providing environmental disclosure, data, and reporting services to businesses worldwide. The second, CDP Foundation, will function as a charitable organisation responsible for guiding disclosure principles based on the latest environmental science.

Although operating independently, both organisations will share a common objective: generating critical environmental information that supports decisions benefiting the planet and future generations.

Over the past 25 years, CDP has played a significant role in advancing environmental disclosure from a niche practice to a key component of corporate and investment decision-making. In response to growing environmental challenges and increasing market expectations, the new structure is designed to strengthen science-based disclosure while enabling greater investment in technology, data capabilities, and user experience.

For companies, investors, and other stakeholders that rely on CDP data, the change is expected to enhance access to tools, analytics, and insights that support risk assessment, resilience planning, and sustainability strategies.

Under the new arrangement, the CDP Foundation will retain a shareholding in CDP and representation on its board. The Foundation will focus on translating emerging scientific research into practical disclosure frameworks and will help shape the future development of CDP's questionnaires. Meanwhile, CDP will concentrate on operating and expanding the world's most comprehensive environmental disclosure system, generating information that supports sustainable economic development.

The Foundation will also work to incorporate cutting-edge environmental indicators aligned with planetary health, ensuring that disclosure practices remain ambitious and impactful. This approach will allow the Foundation to focus on environmental priorities while leveraging CDP's extensive disclosure infrastructure to drive change.

By establishing two complementary organisations, CDP aims to preserve its mission-driven and innovative approach while enabling each entity to pursue its distinct role more effectively. Both organisations will continue to use environmental data to support informed decision-making, while the Foundation advances its charitable objectives.

CDP confirmed that its existing products, services, and the 2026 disclosure cycle will continue without disruption throughout the transition period.

Sherry Madera, Chief Executive Officer of CDP, described the move as a significant milestone in the organisation's evolution. She stated that the new structure would strengthen science-based disclosure efforts and enable greater use of technology to improve the reporting experience for participants. Madera emphasised that CDP and the CDP Foundation would remain united in their mission to generate meaningful insights that support an Earth-positive economy, while the partnership with Permira would help expand the value delivered to companies, financial institutions, and other data users.

Katherine Garrett-Cox, Chair of the CDP Board of Trustees, highlighted that innovation and science have always been central to CDP's work. She noted that the new model would strengthen the role of CDP's data in promoting sustainable markets, driving positive environmental outcomes, and safeguarding future generations.

Permira brings extensive experience in supporting data-driven organisations through growth and transformation. The investment firm intends to support CDP through increased investment in talent, technology, and product development.

The partnership will allow the CDP Foundation to remain a shareholder in CDP while helping the commercial organisation enhance its services for corporate and financial-sector users worldwide. The goal is to improve both the disclosure process and the quality of environmental insights available to decision-makers.

Sustainability has long been a focus area for Permira, which has established a dedicated Energy Transition investment strategy aimed at supporting businesses that contribute to the transition toward a more sustainable economy through technology, data, and service platforms.

Anish Patel, Partner and Co-Head of Energy Transition, and Gabriel Andrews, Managing Director – Energy Transition at Permira, noted that as environmental risks increasingly influence supply chains and investment decisions, reliable environmental data has become essential. They described CDP as a critical provider of such information and stated that the partnership would strengthen CDP's ability to support informed environmental decision-making on a global scale while also supporting the Foundation's ongoing mission. They further highlighted Permira's experience in helping organisations expand their reach and impact and expressed enthusiasm about supporting CDP's next phase of development.

Legal advice for the transaction was provided by Bates Wells and Baker & McKenzie LLP on behalf of CDP, CDP North America, and CDP Japan. Financial advisory services were provided by Rothschild & Co and Alvarez & Marsal.

The transaction remains subject to regulatory approvals, including approval from the Charity Commission, as well as the fulfilment of customary closing conditions. Completion is expected within the next six months.

Sophia Mendelsohn, Chief Sustainability and Commercial Officer at SAP, shares insights on navigating new ESG reporting standards
As organisations grapple with the introduction of evolving ESG reporting frameworks, it’s essential to remember the core purpose behind these regulations: driving meaningful sustainability transformation.

Sophia Mendelsohn, SAP’s Chief Sustainability and Commercial Officer, delves into this shifting landscape, offering guidance on how companies can meet growing compliance demands while maintaining operational effectiveness.

With new guidelines from the IAASB and IESBA coming into effect, Mendelsohn highlights how businesses can shift their focus from viewing compliance as a challenge to seeing it as an opportunity to create value. She also offers her perspective on how the tech sector can adapt to these standards and leverage them for long-term impact.

How will the new IAASB and IESBA standards influence sustainability reporting in the tech industry?
According to Mendelsohn, there's a critical distinction between understanding reporting requirements and having the capability to act on them. The introduction of these audit and ethics standards reflects a broader push for transparency and credibility in ESG disclosures.

However, businesses should focus on delivering relevant, decision-oriented information that supports transformation rather than treating sustainability as just another reporting requirement. This approach not only builds trust among stakeholders but also drives better environmental practices across the technology sector.

What are the main challenges organisations might face with these new standards?
Mendelsohn emphasises that access to quality data remains one of the most significant barriers. Sustainability efforts rely heavily on integrating and managing disparate data sets across various business functions and supply chains.

To turn this challenge into an advantage, companies need to embrace tools that simplify compliance and automate reporting. By standardising data and leveraging advanced technologies like AI and analytics, organisations can reduce the administrative burden and focus their energy on actual sustainability progress.

With compliance enforcement beginning in December 2026, will most tech firms be prepared?
While climate change remains a top concern for senior executives, Mendelsohn notes that only half of businesses have begun implementing technological solutions to meet climate objectives. Without accelerating digital adoption, many may struggle to keep pace with the new requirements.
She stresses the importance of integrating compliance tools now, so sustainability teams can concentrate on impact-driven strategies. Treating sustainability data with the same level of discipline as financial data is key to success.

How do these assurance standards connect with global frameworks like the EU CSRD and the SEC’s disclosure rules?
The new standards are designed to complement existing frameworks and promote consistency in sustainability reporting. The goal is to increase transparency and prevent greenwashing by aligning financial reporting structures with environmental disclosures.

However, Mendelsohn reminds leaders that these standards are not tailored for day-to-day operational decision-making. That’s why it’s critical for sustainability and finance leaders to collaborate and use technology—like AI-powered platforms—to integrate carbon tracking into core business processes and identify both risks and opportunities.

How does technology support the accuracy and reliability of ESG data?
Technology plays a foundational role in maintaining data integrity by automating collection, analysis, and reporting. SAP’s Green Ledger, for instance, offers a comprehensive carbon accounting system that aligns environmental metrics directly with financial transactions. This enables organisations to generate real-time, verifiable data instead of estimates—supporting better compliance and long-term sustainability planning.

What advancements in supply chain or carbon accounting are helping companies meet stricter standards?
Mendelsohn points to SAP’s Green Ledger as a prime example of innovation in this space. By mirroring traditional financial accounting systems, it allows businesses to trace emissions across products, services, and organisational units.

Companies like Covestro are already piloting this solution to track carbon output tied to specific products within their supply chains, offering a model for integrating environmental data into everyday business operations.

How can companies balance rigorous reporting with operational simplicity?
Her advice is to treat sustainability as an embedded business process rather than a separate reporting function. When sustainability becomes a core component of enterprise resource planning, it drives alignment across departments and supports long-term strategy—ensuring efforts are focused on tangible outcomes, not just paperwork.