From disclosure to action: how CDP’s A List is driving environmental leadership

CDP's A List is the world’s most comprehensive rating of companies leading on environmental action.

Today, as we release our 2017 results, we are celebrating the 160 corporates driving forward action on climate change, water and deforestation. They are spearheading the transition to a low-carbon, water secure future.

This year’s A List is proof that the decision to disclose takes companies on a path towards action. An increasing number of companies are using the insights they collect from the disclosure process as the first step to improving their operations on the ground.

Disclosure to CDP has increased by 33% since 2013. We’ve seen a very encouraging trend: those companies that have been disclosing for several years have been improving across the board, progressing from disclosure to awareness, management and finally leadership.

The Water program has seen a significant increase in disclosure since its inception in 2010. This year, 2,025 companies, representing US$30 trillion in market capitalization, disclosed their water management performance – that’s almost twice as many as in 2015.

This comes at a time when getting onto our A List is more challenging than ever. By tightening the criteria companies must meet to receive an A score, we have made the top spot highly competitive.

From disclosure to action

Companies are increasingly recognizing the importance of water, deforestation and climate change to their business models. Measuring, understanding and reducing their environmental impact just makes business sense.

Take Unilever and L'Oréal, for example. Both of these corporates achieved As across all three of CDP’s reporting areas – climate change, water and forests. They are an example of how companies can reduce their emissions, increase water security and tackle deforestation, all whilst making a profit.

But they are far from alone. Our climate analysis (Picking up the Pace), also released today, shows companies across the board are stepping up their response to climate change. From a sample of the highest valued companies disclosing to CDP, 89% have put in place emissions reduction targets in 2017 – up from 85% last year. And over two thirds are now mapping out the actions they need to take by 2020 to meet their targets.

Global action

What’s more, this shift is happening at a global scale. This year’s A List comprises companies from across the world. US companies stand out as driving forward environmental action; they are taking on a leadership position at a time when their federal government is stepping back.

A List – regional breakdown

Next steps

CDP’s disclosure platform empowers companies to report their environmental performance transparently and reliably, and to engage with others across their value chains.

We also support companies ready to take their commitment to the next level. We provide them with the tools to drive down their emissions through the pioneering ‘Science Based Targets’ initiative. 54 A List companies have now signed up to the initiative, which helps them work toward their climate goals by aligning their carbon emission reductions in line with what climate models say is necessary to keep global temperature rise well below 2°C.

From to Coca-Cola to Goldman Sachs, some of the world’s highest profile companies are driving forward change. And where they lead, others are sure to follow.

Towards a tipping point

The momentum is with us, but there’s still a long way to go.

Companies now disclose to CDP at the request of over 800 investors with over US$100 trillion in assets under management. But that leaves many of the world’s biggest companies still not responding to our requests to disclose their environmental impact. Now more than ever, companies and investors have a vital role to play in keeping up global momentum on environmental action.

There is only one direction of travel –and that’s forward. Ever more corporates are recognizing the benefits of acting and the risks of continuing business as usual, while environmental risk is quickly becoming integrated into mainstream financial reporting.

The world is witnessing an unprecedented shift towards a sustainable economy and CDP continues to provide the tools we need to help tip the balance. Together we can move towards a safer, more sustainable and more prosperous future and build a thriving economy that works for both people and planet.