Too many companies are not responding to requests for environmental transparency, nonprofit platform CDP said Tuesday, after only 1.3% of more than 900 companies scored an “A” based on their disclosures about climate change, forests and water security.
CDP, the world’s largest repository of voluntary environmental data submitted by companies, provides a snapshot of companies’ disclosures and environmental performance by rating them from “A” to “F”.
More than 29,500 companies worth at least $24.5 trillion received an “F” for not responding to disclosure requests from investors and customers or for not providing enough information in their responses, CDP found, while just over 330 received the ” A” list.
“A-List companies should be commended for their level of transparency,” said Global Director of Corporations and Supply Chains at CDP Dexter Galvin. “But we cannot ignore the fact that these companies are in the minority.”
“Most are still not managing all environmental issues holistically, and far too many remain complacent or do not respond at all,” he added in a statement.
More and more climate experts, investors and regulators agree that corporate transparency needs to be improved to support the fight against climate change. But many also accuse companies of “greenwashing” with splashy announcements while doing little to reduce overall greenhouse gas emissions.
CDP showed that more than 680 investors and 280 major buyers had requested thousands of companies to disclose through their platform this year. This resulted in more than 18,700 business reports, an increase of 233% since 2015.
“Since there is no route to 1.5C without nature, (companies) need to accelerate and scale their progress in addressing deforestation and water impacts, dependencies and risks as well,” Galvin said, while CDP has seen slow progress on those goals. signaled.
Scientists say it is necessary to limit the temperature rise to 1.5 degrees Celsius above the pre-industrial average, in line with the Paris Climate Agreement, to avoid the most serious effects of global warming.
According to Justin Steinberg, portfolio manager for Sargasso Environmental Strategy at Steinberg Asset Management, companies that integrate such issues are expected to be “better positioned to take advantage of emerging opportunities as the environmental megatrend takes hold.”