Following a year of record temperatures, unprecedented atmospheric CO2 levels and extreme weather events, we are pleased to see that this year the number of companies leading the way in environmental transparency and disclosure to CDP has risen once again.
The CDP scores for the 2023 round of disclosures have just been released. Out of 21,000 companies scored this year, almost 400 companies achieved a Leadership A-list ranking, with 346 achieving an A score for the Climate Change Questionnaire. EcoAct’s clients are among those achieving the highest-level score, being amongst the most transparent in terms of disclosure and demonstrating their leadership in addressing climate risks and contributing towards a low carbon future. This year our clients make up 6% of those on the 2023 A-List.
EcoAct is delighted to congratulate 49 of its clients for achieving Leadership status (A and A- scores). Overall, 45% of the responses we supported on in 2023 achieved an A or A-, significantly higher than the global average. In total, 18% of our clients achieved an A this year. We are also very pleased to announce a very positive year across the board for our clients and partners, with an overall average increase in scores for the clients we worked with and 15% of those improving their score to an A or A- this year.
Each year our clients continue to climb the ranks of the CDP scores and we are encouraged to see corporates raising their climate ambitions and working hard to improve their climate disclosures even in the face of unprecedented global challenges. In fact, a record-breaking 23,000+ companies responded to CDP this year, which CDP report to be a 24% uplift on last year and a 140% increase since 2020. Companies representing at least two thirds of global market capital now respond to CDP, which is promising progress given the growing urgency of the climate crisis and need for concerted action and, importantly, transparency.
CDP is one of the most comprehensive and internationally recognised sustainability reporting platforms. It works on behalf of investors representing US$136 trillion in assets. The scores published by CDP allow these investors to see that companies are incorporating sustainability into their business strategy and practices, so they can assess the climate risk of their portfolios.
The importance of good quality climate disclosures has never been more pressing, particularly in light of the immense impact the climate emergency poses to our global economy and the limited time we have left to limit global temperature rise and reach net-zero.
The increase in CDP disclosure this year seems to demonstrate the power wielded by the investor community to shape disclosures and drive forward progress on climate. We hope to see this progress continue into 2024.
What next? The new scores may be in but companies must already be turning their attention to their 2024 responses. Many changes are coming this year, including an integrated questionnaire combining all three environmental themes (climate change, water security and forests). What questions and environmental themes companies need to respond to will be based on their business activities and investor requests. Companies will still receive separate scores for climate change, water security and forests. Moreover, timelines have also been updated with the new platform available in April and the disclosure period opening between early June to September. EcoAct will be publishing a revised CDP factsheet summarising any updates to the questionnaires and providing tips for how you can maximise your 2024 disclosures when they are released in April. Watch this space…
EcoAct is a Gold CDP Climate Change partner as well as a Gold CDP Partner for science-based targets. Every year we work with a wide range of companies across many different sectors to help them tackle the challenges of climate change, set ambitious climate targets and achieve improvements to their annual disclosures to CDP. We have supported over 70 companies with their CDP disclosures over the past two years and in 2023 we supported 112 clients submit 150 CDP responses.
For all the 2023 updates, timelines and the future of CDP, download your copy of the 2023 CDP Factsheet today.
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