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Almost all climate-related corporate disclosures are inadequate, CDP says -Breaking

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© Reuters. FILE PHOTO – Smoke billowing from a chimney can be seen as the UN Climate Change Conference takes place (COP26) in Glasgow Scotland, Britain on November 6th, 2021. REUTERS/Yves Herman

Simon Jessop. Tommy Wilkes. Elizabeth Howcroft

LONDON, (Reuters) – Only 1% submit climate-related data to non-profit environmental disclosure platform CDP. Investors have the information necessary to evaluate whether they have a credible transition plan.

The latest data from Reuters highlights the gap between ambitious climate-change plans by companies and follow up with detailed plans that are required to meet their goals.

CDP is the largest repository of voluntary environmental data from companies. Shareholders are urging them to reveal how they will navigate the shift to lower carbon future. CDP assesses the companies’ climate plans, and they are not made public unless requested by companies.

CDP reviewed submissions representing 13120 companies (64% of world’s total market capitalization) and determined that 135 firms met the requirement of disclosing data for each of the 24 key indicators CDP considered essential to a credible plan.

Nicolette Bartlett, chief impact officer at CDP, said this in an interview. This was in view of the growing pressure from the business community to limit global warming to 1.5° Celsius above preindustrial norms by midcentury in order to prevent the worst effects of climate change.

CDP also found that only 40002 of the companies, or 30% of all the companies, claimed they had a low carbon transition plan. This is not as many companies than the 37% who did have one in the previous year.

According to her, a third percent of reporting companies claim they have a climate plan. And then there are 1% of companies that actually revealed…that give the correct amount of information for the world to assess whether it is a good plan.

CDP’s 24 indicators range from whether the company board was responsible for a climate strategy to whether or not it had been linked to chief executives pay and capital spending plans.

Lack of disclosure – https://fingfx.thomsonreuters.com/gfx/mkt/akvezxezdpr/Lack%20of%20disclosure.png

CDP stated that only 4% reported data for all 24 indicators among the G20, which is responsible for 75% in global greenhouse gas emissions.

Globally, the least transparent sectors were apparel and transport. Both had less than 0.3% companies reporting to all indicators.

Financial services, fossil fuels, and power are the industries most under scrutiny for their transition plans. But only 5% reported all of the indicators.

(Graphic created by Elizabeth Howcroft, Editing by Jonathan Oatis

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