Just 12 companies – 1.3% of the 900-plus companies requested to disclose across three categories by CDP, a nonprofit that runs an environmental disclosure system for companies, cities, states and regions – were awarded a Triple A for their transparency and action across climate change, forests and water security in 2022. The number of Triple A companies fell from 14 last year.
Around 330 global companies out of the 15,000 scored were awarded at least one A for their environmental disclosures in 2022. Approximately 280 companies scored an A for their climate change disclosures – a 34% increase from 2021. Yet there was only a 4% increase in the number achieving an A for their forests disclosures (just one more company than last year) and a 12.7% decrease in the number awarded an A for water security.
In addition, many companies are still failing to disclose. More than 29,500 companies worth at least $24.5trn in market capitalisation – including Aramco, Berkshire Hathaway, Chevron, ExxonMobil and Tesla – scored an F for failing to respond to disclosure requests from their investors and clients or providing insufficient information in their responses. In fact, according to a recent report by consultancy South Pole, a quarter of companies with science-based net-zero targets are choosing not to publicise them, or “green hushing”.
“Environmental disclosure is the first vital step towards a net-zero and nature-positive future, so A List companies should be commended for the level of transparency in their CDP responses,” said Dexter Galvin, global director of corporations and supply chains at CDP, in a statement.
“But we cannot ignore that these companies are in the minority. Most are still not managing all environmental issues holistically, and far too many are remaining complacent or failing to respond at all. Companies must step up to the challenge as CDP continues to lift the bar for what qualifies as environmental leadership, and since there is no route to 1.5°C without nature, they must speed and scale up their progress in addressing deforestation and water impacts, dependencies and risks, too.”