Defying Global Headwinds, Industry Leaders Turn Environmental Progress Into Billion‑Dollar Gains

Just 15% of companies are pulling ahead as environmental leaders – cutting emissions four times faster and unlocking US$218bn in value in the past year
Europe holds firm as Asia accelerates, with Japan emerging as the global standout
Signals of leadership emerging: 13% of companies now lead on climate, 11% on water and 8% on forests

January 14, 2026, London: A small cohort of global companies is proving that environmental leadership delivers measurable business returns. The CDP Corporate Health Check 2026 finds that 15% of companies worldwide are now embedding climate and nature into core business decisions, cutting emissions at four times the rate of their peers and collectively unlocking US$218 billion in financial opportunities in just the last 12 months. These leading companies reduced emissions at an average compound annual growth rate (CAGR) of 4%, compared with just 1% among lower-performing companies.

Now in its second year, the annual CDP Corporate Health Check, delivered in collaboration with Oliver Wyman, draws on disclosures from more than 10,000 companies. This year’s analysis goes beyond progress tracking to examine how environmental performance is reshaping financial outcomes across regions and sectors.

Environmental leadership gathers pace despite global uncertainty

Despite a turbulent geopolitical and economic backdrop with uneven policy signals, corporate environmental leadership is advancing. In 2025, 15% of companies achieved Leadership[1] level in at least one environmental theme: climate, water and forests; with climate being most successful (13%) followed by water (11%) and forests (8%).

Sustainability leadership brings financial opportunity

Across several major sectors, companies at the highest performance level have seen stronger market capitalization growth since 2022 compared to those at other levels, including financial services (30% v/s 19%), infrastructure (19% v/s 17%) and apparel (16% v/s 2%). These findings reinforce the economic case for acting on environmental opportunity within planetary boundaries.

A widening regional divide – Japan sets the pace

The 2026 Health Check highlights widening divergence in environmental performance across regions. Japan has emerged a global leader with 22% of companies achieving Leadership status on climate, ahead of the UK (17%), EU (16%), and India (11%). China and Southeast Asia each stand at 8%; with Brazil at 7% and the USA at 5%.

Europe continues to perform strongly overall, while momentum is building in parts of Asia. The United States, however, is falling behind. Only 31% of US companies reached the top two performance levels, compared with 52% in the EU27 and 54% in China. Japan is the only country where more than 10% of companies lead across all three themes: climate, water and forests. Over the past year alone, Japanese leaders captured US$76 billion in new climate-related opportunities.

What leaders are doing differently

The research shows that environmental leaders are activating clear business levers to secure long-term advantage. These include strong governance, credible transition planning aligned to 1.5°C, deep value-chain engagement and incentives tied to performance. All climate leaders and 78% of water and forest leaders now link executive pay directly to environmental outcomes.

Adaptation: The next frontier for value

Companies reporting through CDP have identified US$1.47 trillion in physical environmental risks, with over a quarter materializing in the near term, underscoring the scale of the resilience challenge ahead. While only US$84.5 billion in physical adaptation investment was disclosed in 2025, it highlights a significant opportunity for companies to strengthen preparedness, protect value and accelerate long-term performance.

Sherry Madera, Chief Executive Officer at CDP said: “Climate and nature loss are no longer distant risks - they are already reshaping markets, supply chains and investment decisions. The 2026 Corporate Health Check shows that companies applying earth-positive economics are turning environmental data into better business outcomes. By measuring and managing these pressures, leaders are allocating capital more effectively, strengthening resilience and unlocking tangible financial value, even amid global uncertainty. Earth-positive is no longer peripheral to business strategy; it is becoming a core driver of long-term competitiveness. The challenge now is scale – making this the norm rather than exception.”

Nick Studer, CEO, Oliver Wyman, adds: “Momentum for the transition is undeniable, yet at the same time businesses face a level of political and macroeconomic uncertainty not seen in a generation. It is heartening to see from this report that companies worldwide have maintained their commitment to environmental disclosures; that leadership in disclosures is being followed by leadership in reducing emissions; and that many companies are able to take a leadership position in environmental disclosure without detriment to financial performance.”

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Notes to the editors

About the CDP Corporate Health Check

Drawing on analysis of disclosure data from many of the world’s largest and most influential organizations, the Corporate Health Check report assesses how leading companies are reducing their environmental impacts, while improving financial resilience. Assessed companies are assigned one of four levels – Level 1: Disclosure, Level 2: Awareness, Level 3: Management and Level 4: Leadership – based on their disclosure through CDP in 2025.

Disclosure: Limited disclosure on emissions reduction or target setting. No board-level oversight on climate and nature issues or integration into business strategies.
Awareness: Disclosure on Scope 1 and 2 emissions, basic assessment of climate and nature risks, some board oversight, and awareness of environmental impacts.
Management: Full disclosure of value chain emissions (Scopes 1, 2 and 3) with targets covering suppliers. Targets also address water and/or forests. Strong environmental governance and coordinated action with climate and nature integrated into strategy and future plans.
Leadership: Best practice transparency and performance. Full disclosure of emissions and nature topics, deep understanding of nature dependencies, risks and opportunities. Science-based climate targets, governance embedded at the core of strategy, and capital allocation aligned with transition plans.

For more information, please contact:

Samika Meshram-Jasinski (samika.meshram@cdp.net)
George Bush (george.bush@cdp.net)

About CDP

CDP is a global non-profit that runs the world’s only independent environmental disclosure system. As the founder of environmental reporting, we believe in transparency and the power of data to drive change. Partnering with leaders in enterprise, capital, policy and science, we surface the information needed to enable Earth-positive decisions. We helped more than 22,100 companies and over 1,000 cities, states and regions disclose their environmental impacts in 2025. Financial institutions with more than a quarter of the world’s institutional assets use CDP data to help inform investment and lending decisions. Aligned with the ISSB’s climate standard, IFRS S2, as its foundational baseline, CDP integrates best practice reporting standards and frameworks in one place. Our team is truly global, united by our shared desire to build a world where people, planet and profit are truly balanced.