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July 19, 2024
Commitment to Climate Transition Plans surge by 50%; Reports CDP
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Commitment to Climate Transition Plans surge by 50%; Reports CDP

Jun 19, 2024

The number of companies disclosing climate transition plans aligned with ambitious global warming targets has surged by nearly 50%, according to data from CDP, a leading environmental disclosure platform. Out of 5,906 companies surveyed, one in four reported having plans in place to cap global warming at 1.5 degrees Celsius above pre-industrial levels—a critical threshold to mitigate severe climate impacts.

Despite this progress, transparency remains a significant concern. CDP’s analysis reveals that while 39% of companies provided information on at least two-thirds of the key metrics outlined by CDP, only 1%—approximately 140 companies—disclosed data across all 21 indicators recommended by the platform. These indicators include comprehensive emissions data, assurance practices, and board oversight, crucial for assessing the credibility of companies’ climate commitments.

CDP Chief Executive Sherry Madera emphasized the growing importance of such disclosures in fostering trust among stakeholders. “With nearly 8,000 additional businesses aiming to establish climate transition plans by 2025, this trend underscores the evolving landscape where climate action is not only a moral imperative but also a strategic business decision,” Madera stated.

However, challenges persist, particularly in regions where corporate reporting on climate remains voluntary. Despite regulatory advancements in the U.S., European Union, and elsewhere mandating such disclosures, the pace of change in corporate boards often outstrips that of policymakers.

As global momentum builds towards net-zero emissions, CDP’s findings highlight the need for enhanced transparency and standardized reporting frameworks to ensure credibility and accountability in corporate climate strategies.

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