From Ambition to Action: What 2025 Disclosure Data Reveals About US Corporate Readiness

Across the United States, companies, cities and states are working hard to understand and respond to the environmental challenges shaping their future. The 2025 disclosure cycle hows encouraging momentum in corporate disclosure: more businesses are setting ambitious goals and recognizing the strategic importance of climate, water and forest‑related issues.

CDP data provides critical insights on environmental ambition and progress around the world – including in the US, where among the 75% of S&P 500 companies that disclose through CDP.

Below are four key messages emerging from the latest US disclosure data.

1. Ambition is rising, but credible transition plans are not yet the norm

There is a growing market expectation for US companies to include a climate transition plan in their organizational strategy. Key stakeholders including investors and customers want to understand how organizations are aligning with long-term global climate goals and adapting their business models to meet the demands of the economy of the future.

Yet in 2025, only 27% of US disclosers had a transition plan, with just 24% reporting a 1.5°C‑aligned plan. Both figures lag well behind the global disclosure rates of 49% and 43%, respectively.

Encouragingly, however, of the companies that do have a transition plan in place, 87% align their plans with a 1.5C pathway — suggesting that when US companies commit, they have high ambitions.

For companies without a plan, the challenge is knowing where to start. A credible plan requires complex elements such as robust governance, scenario analysis, and Scope 1, 2 and 3 accounting. To build trust and demonstrate progress, companies need to be transparent about the assumptions underpinning their plan, embed feedback mechanisms into their reporting, and use credible science-based targets.

Read more insights on climate transition planning KPIs disclosed by over 12,000 companies through CDP in our report, From Plans to Capital: Unlocking Credible Transition Finance at Scale. You can also learn more about the principles and elements of a credible transition plan in this Technical Note.

2. Emissions target‑setting is maturing

US companies are making real progress in setting stronger emissions targets. Absolute targets, which provide a clear picture of real‑world emissions reductions, have grown from 24% of all answers in 2020 to 41% in 2025.

The number of organizations with at least one science-based target has more than tripled, rising from 261 in 2020 to 825 in 2025 – reflecting a significant expansion in corporate engagement with science-based target setting.

3. Scenario analysis is improving

Scenario analysis is a vital part of an organization's strategy for risk management and transition to a sustainable economy. Every company achieving CDP A List status uses climate change scenarios to identify environmental risks and opportunities and assess the resilience of its strategy, supply chain and business model.

Data disclosed through CDP shows meaningful progress: scenario analysis adoption increased by 80% between 2021 and 2025. This improvement demonstrates that more US companies are embedding transparency into their reporting.

However, the data also highlights that many organizations are still early in their journey: more than 50% of the disclosers have not yet conducted scenario analysis.

Further information on conducting and disclosing scenario analysis can be found in this Technical Note on Scenario Analysis.

4. Companies are deepening their focus on water and forests

Understanding an organization’s link to water security and deforestation are essential to both environmental resilience and long‑term business success.

Yet the data shows that many US companies are still developing the capabilities needed to manage these issues effectively.    

Water

US companies have significantly expanded their ambition: adoption of water‑withdrawal targets has nearly doubled, rising from 42% in 2020 to almost 80% in 2025. This jump reflects a stronger commitment to managing water use in ways that support both business resilience and the health of local ecosystems.

The share of companies identifying substantive water risks has increased from 40% to 52%, signaling that organizations are looking more closely at where water challenges intersect with their operations.

Organizations can set science-based targets for freshwater by following the SBTN Corporate Manual.    

Forests

The data shows a clear shift toward deeper engagement with forest-related disclosures. The share of organizations identifying a substantial forest‑related risk rose from 46% in 2020 to 55% in 2025, reflecting a growing recognition that deforestation, land‑use change, and ecosystem degradation can directly affect business continuity and long‑term value.

At the same time, identification of forest‑related opportunities climbed from 43% in 2024 to 49% in 2025, suggesting that more organizations understand how protecting and restoring forests can unlock new markets, strengthen supply chains and support community resilience.

This rising awareness is reinforced by steady progress in supply‑chain transparency. The share of companies that can trace at least one of their commodities rose from 64% in 2020 to 67% in 2025 – notable given the significant increase in respondents over the same period. Even more encouraging, an additional 21% of organizations in 2025 plan to establish a traceability system within two years – signaling a growing commitment and future expansion.

See the Accountability Framework Initiative's (AFI) guidance on setting no-deforestation targets under SBTi FLAG.

The path ahead

Across every environmental theme, the story is consistent: many US companies are setting ambitious goals and identifying more risks. But capability gaps remain. Some organizations are struggling to keep up with their global counterparts, or are looking for support with moving from intent to best practice.

Score Feedback Calls and Gap Analysis Calls through CDP help bridge that gap. They offer a clear, supportive roadmap, helping companies build credible transition plans, implement leading scenario analysis, and put in place robust processes for identifying, assessing and managing environmental risks and opportunities.

By helping companies understand how they are performing today and what steps will strengthen their environmental leadership tomorrow, Score Feedback Calls and Gap Analysis Calls empower US organizations to move forward with confidence, clarity, and purpose. They turn disclosure into direction and direction into action – enabling companies to handle longer-term uncertainties and liabilities while also capitalizing on opportunities.

Score Feedback Calls and Gap Analysis Calls are available to Reporter Services members as well as non-members (although availability to non-members is limited).