CDP: in 2022 less than 1% of companies have disclosed credible climate transition plans

The CDP (formerly Carbon Disclosure Project) is an international non-profit institution that manages a system for disclosing environmental impacts around the world. Created in 2000, CDP has regional offices and local partners in 50 countries. It supports thousands of companies, cities, states and regions in more than 90 countries in measuring and managing risks and opportunities in climate change, water security and deforestation.

With a very comprehensive self-reported database, CDP is becoming a global benchmark in environmental reporting. In addition to being fully aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), launched in 2017 to improve and increase the disclosure of climate-related financial information.

On February 7th, CDP's new 2022 report showed that companies are recognizing the need for climate transition plans. On the other hand, the movement is still slow. Here the highlights:

• Over 4,000 (out of 18,600) companies reported having a climate transition plan

• Only 81 (0.4%) demonstrated a good climate transition plan, best practices by disclosing all 21 key indicators (*)

• Examples of key indicators that make up a good climate transition plan include board-level oversight, scenario analysis, financial planning and engagement policies

• Companies headquartered in Japan were the top performers, with 16 organizations disclosing all key indicators

• Companies in the power generation and infrastructure sectors usually provide full disclosures

• Apparel, fossil fuel and hospitality industries with very few organizations disclosing all key indicators.

Click on the image below to download the full report (*21 key indicators are detailed in the Appendix).

And here for the so-called "The A List 2022": the more than 330 companies that, according to the CDP ranking, lead the way in environmental transparency and performance in climate change, deforestation and water security. And there is more interesting information on the website.