CDP: Just 2% of disclosing companies demonstrate environmental leadership

Climate disclosure platform CDP says a record 22,700 companies reported their impacts last year – but only 2% demonstrated climate or environmental leadership.

While the number of companies disclosing through CDP is up by around 8% from 2023, the proportion of climate leaders remained stagnant at 2%, meaning that 515 companies received A scores for their reporting.

The latest scores follow the introduction of a single corporate questionnaire, but CDP reveals that the wide majority of the A list scores (462, up from 346 in 2023) were on climate questions, while 133 (up from 101) were related to water security and 26 (down from 30) to forests. 

CDP’s A-listers set the pace and outperform peers

“The companies on CDP’s A List are not only responding to this demand, but they are also setting the pace,” said Sherry Madera, CEO of CDP. “They are weaving environmental stewardship into their governance, strategy and operations, and embracing transparency as a tool for growth. Their leadership is a blueprint for the economy we need. 2025 must be the year all companies move decisively from transparency to action. The companies that choose to disclose through CDP – and to be scored – are choosing progress. And they are choosing to lead.” 

Research has shown that companies on CDP’s A List tend to outperform their peers, with an average of 6% higher stock returns over the past decade, suggesting that transparency and ambition are strategic advantages. 

But the fact that such a small percentage of disclosers achieve this score is a sign that “the bar for true environmental leadership remains rigorously high,” according to CDP.

Other indicators of climate performance

Earlier this year, CDP’s inaugural Corporate Health Check found that linking sustainability KPIs to pay incentives was the top indicator of climate performance – with nearly 80% of the companies on track to meet their climate targets adopting this practice.

Beyond sustainability-linked pay, other indicators included having a 1.5ºC-aligned climate transition plan, having established an internal carbon price and engaging both suppliers and customers on climate topics.

Watch CDP CEO Sherry Madera share advice on how companies can leverage sustainability disclosures to drive action and transformation in this CSO Futures webinar.