Sustainability disclosure platform CDP has published a study, in collaboration with Oliver Wynam, on companies that are “leading” on environmental performance and governance.
Out of a sample of 10,000 companies that have disclosed environmental information through the CDP survey, 15% are identified as having embedded climate and nature into core business decisions.
These companies reduced emissions at an average compound annual growth rate of 4%, compared with 1% among lower-scoring companies.
Across several major sectors, leading companies have also seen stronger market capitalisation growth compared to their peers – including financial services (30% v 19%), infrastructure (19% v 17%), apparel (16% v 2%), and food, beverage and agriculture (10% v 7%).
CDP has also identified four key “levers” of environmental leadership: linking executive pay to environmental performance; robust processes for managing dependencies, impacts, risks and opportunities; value chain engagement; and climate transition plans with ambitious targets.
CDP CEO Sherry Madera stated: “Companies applying earth-positive economics are turning environmental data into better business outcomes. By measuring and managing these pressures, leaders are allocating capital more effectively, strengthening resilience and unlocking tangible financial value, even amid global uncertainty.”
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