Giving Compass' Take:
- James Murray examines the rise in corporate climate-related disclosures, as indicated by the annual report by CDP.
- How can increased corporate climate-related disclosure open the door to holding corporations accountable?
- Learn about corporate carbon neutrality.
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The march of climate-related disclosures into the corporate mainstream has chalked off another major milestone, with companies responsible for over half of global market capitalization providing environmental data to the CDP disclosure platform.
The influential investor-backed NGO published its annual progress report on organizations' environmental disclosures, revealing that it smashed the record set last year. The group confirmed nearly 20,000 organizations have disclosed climate and environmental data through CDP in 2022 — a 38 percent increase on 2021.
Overall, over 18,700 businesses, including listed companies boasting $60.8 trillion of market capitalization, disclose data on climate change, deforestation and water security through CDP. They are joined by more than 1,100 cities, states and regions that also use the platform to report on their environmental performance.
The latest surge in disclosing organizations means there has now been a 233 percent increase in the number providing CDP with environmental information since the Paris Agreement was signed in 2015.
"This is a landmark year for environmental disclosure," said Mercedes Tallo, chief stakeholder officer at CDP. "This is crucial because disclosure provides the impetus for action and the mechanism for accountability. There is unprecedented agreement among stakeholders that environmental disclosure is a necessity to measure and drive progress to show impact, and it clearly now sits at the top of boardroom agendas and government policy."
The report further underscores how environmental disclosure is now a mainstream activity for corporates in many of the world's largest markets and influential industries.
Over 3,700 corporates are disclosing in the U.S. and over 2,500 China-based companies reported through CDP last year. A further 1,700 corporates from Japan, 1,400 from the U.K. and 1,300 from Brazil complete the list of the top five disclosing countries on the platform. In terms of disclosure by corporate activity, the manufacturing sector led the way with over 7,490 disclosures, followed by services with 4,400, materials with 1,690, food, beverage and agriculture with over 1,000, and transportation services with over 930.
Read the full article about corporate climate disclosure by James Murray at GreenBiz.