CDP Environmental Scores Released: Only 12 of Over 18,000 Companies Achieve Top Scores Across All Categories
Climate research provider and environmental disclosure platform CDP announced today the release of its company scores for 2022, including its annual “A List” of top performers. While the list of companies disclosing through CDP grew significantly this year to over 18,700, only 12 companies were classified as top performers across all environmental categories, down from 14 last year.
CDP scores companies across the key environmental categories of Climate Change, Forests, and Water Security, providing rankings from D- to A in each, with “D” indicating that the companies are at disclosure level, “C” showing awareness of impact, “B” companies taking action to manage their environmental impact, and “A” companies achieving leadership level.
Companies that achieved “Triple A” status, with A-level scores across the three categories in 2022 included Beiersdorf AG, Danone , FIRMENICH SA,HP, KAO Corporation, Klabin S/A, Lenzing AG, L’Oréal, LVMH, Metsä Board Corporation, Philip Morris International, and UPM-Kymmene Corporation. (Click here for last year’s Triple A list).
While the list of companies awarded Triple A scores declined over the prior year, 333 companies achieved an A score in at least one category this year, up from 272 in 2021.
Dexter Galvin, Global Director of Corporations & Supply Chains at CDP, said:
“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. 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.”
The biggest increase in top scores was in the Climate Change category, with 283 companies reaching an “A” score, up 34% over 2021, while 25 companies achieved an “A” score in the Forests category, up only by 1 compared to prior year. Companies achieving the top score in Water Security declined to 103 from 118 in 2021.
According to CDP, the organization raised the bar in 2022 on qualification for leadership status across the categories, with more stringent criteria such as 1.5°C-aligned climate transition planning, verification of deforestation commodity volumes, and verification of water data. Last month, CDP announced that it will incorporate the IFRS’ new climate-related disclosure standard into its environmental disclosure platform, currently under development by the ISSB, beginning with the 2024 disclosure cycle.
“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.”
Click here to access CDP’s annual “A List.”