The newest CDP assessment results for 2021, published on December 7, provide a clear insight into the development of corporate transparency and the willingness by companies across the globe to undertake environmental action.
This year a record-breaking 13,000+ companies reported their environmental data through CDP, submitting at least one of the available questionnaires (Climate Change, Water or Forest), representing over 64 percent of global market capitalisation. Compared to 2015, the year the Paris Agreement was signed, this represents a 141 percent increase, and a 35 percent increase compared to 2020.
Among all the scored companies, 272 were recognised on the CDP’s annual A-List, worth a total of $12 trillion, 14 were awarded Triple A scores. The slight fall in the number of companies on the A-List (280 in 2020) can be linked to the raised standards of the questionnaires, since more ambitious action is now required compared to 2020. The requirements to score an A include a diligent risk management in place, robust governance, oversight on climate issues and verified scope 1 and 2 emissions. In addition to this it is a bonus to have these emission targets approved by the Science Based Targets initiative and more companies are also starting to provide their scope 3 emissions. Despite a raised bar and increased challenges in the ranking standards, many of the participating companies significantly improved their scores, with a total of 509 companies improving from a C to a B rating. This points to a clear advancement from merely disclosing environmental impact, to taking action and managing the impact.
Besides the overall increase in CDP participants, more companies than ever took leading action in the areas of Water and Forest, indicating that these areas are gaining importance on the corporate agenda. This is also reflected by the increase of A-Listers for both the Water and Forest questionnaire, with 11 and 50 percent respectively.
On the whole environmental transparency is becoming more significant across markets. This was made evident by the fact that more than 590 investors and 200 major buyers, requested corporate environmental data through CDP in 2021, covering over US$110 trillion in assets and US$5.5 trillion in procurement spending.
Importance of CDP rating
CDP (formerly “Carbon Disclosure Project”) is an independent organization that assesses thousands of companies and organizations worldwide every year. The questionnaire collects and evaluates data and information from participating companies on CO2 emissions, climate risks, and reduction targets and strategies. As a recognised authority on sustainability assessments, CDP increasingly incorporated into financial assessments, (Deutsche Börse, Reuters, Google Finance, etc.).
By adding Water and Forest into the questionnaire, topics covering water security and deforestation have come into closer focus for reporting companies. The forthcoming 2022 addition of the Biodiversity category is hoping to achieve the same goals with conservation efforts.
Support through DFGE
Since 2014, the Institute for Energy, Ecology and Economy (DFGE) has been supporting well-known companies as a Silver Climate Change Consultancy Partner in answering the CDP questionnaire. In addition to assistance with the CDP Climate Change and CDP Supply Chain Program, DFGE also supports companies in the areas of Water, Forest and Biodiversity from next year.
DFGE is the first selected CDP partner for the German-speaking region. Its CDP accreditation provides a special quality guarantee including specific Science Based Targets.
DFGE can support you, improving your sustainability performance by ensuring your company’s successful participation in the CDP Assessment as well as other sustainability ratings and initiatives
To learn more about our services please contact us by email or give as a call!
Tel: +49 (8192) 99733 20
Additional information for the CDP Results 2021: https://www.cdp.net/en/companies/companies-scores
