# Company climate disclosures jump in 2021 as board pressure builds Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-12-15 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Corporate Climate Data Disclosures Surge: CDP Report Meta Description: Learn how the number of companies disclosing climate data to CDP increased by 40% as investors and policymakers drive sustainability efforts globally. URL: https://financedigest.com/company-climate-disclosures-jump-in-2021-as-board-pressure-buildshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-12-15t070832z1lynxmpehbe076rtroptp4climate-change-companies-data-1736836560015-compressed.jpg) By Patturaja Murugaboopathy and Simon Jessop LONDON (Reuters) – The number of companies sharing climate data with CDP, the world’s leading disclosure platform, jumped by nearly 40% over the last year as investors and policymakers pressured boards, data seen by Reuters showed. Most of the world’s asset managers focus on climate change disclosures in their efforts to pick the winners of the transition to a low-carbon economy and to assess the risks for their portfolios. While some countries have begun to make such disclosures mandatory, the standardised data required by the non-profit CDP [platform has long provided](https://www.financedigest.com/fico-provides-decisioning-platform-for-smartphone-only-buddybank-in-italy.html "FICO Provides Decisioning Platform for Smartphone-Only buddybank in Italy") investors with data that allows them to compare corporate performance. Since the Paris Agreement of 2015, when countries agreed to try to [limit global](https://www.financedigest.com/houlihan-lokey-acquires-quayle-munro-limited-and-establishes-a-new-global-data-analytics-group.html "Houlihan Lokey Acquires Quayle Munro Limited And Establishes A New Global Data & Analytics Group") warming, the number of companies filing to CDP has more than doubled to 13,132 from 5,532. The CDP was founded in 2000. If you look at those numbers, you [see this rate](https://www.financedigest.com/ecb-governors-see-rising-risk-of-rate-hitting-2-to-curb-inflation-sources.html "ECB governors see rising risk of rate hitting 2% to curb inflation – sources") of change increase, and I think that’s really important. Each year is a much bigger leap than we expected from the [previous](https://www.financedigest.com/glastons-interim-report-1-january-31-march-2018-orders-received-grew-23-comparable-operating-profit-at-previous-years-level.html "Glaston’s Interim Report 1 January – 31 March 2018: Orders received grew 23%, comparable operating profit at previous year’s level") year,” Nicolette Bartlett, executive director at CDP, said. (Graphic: Number of corporate climate disclosers , https://graphics.reuters.com/CLIMATE-CHANGE/lgpdwojwxvo/chart.png) The pace of disclosures has also risen consistently, bar a COVID-19 induced slow-down [last year](https://www.financedigest.com/most-uk-smes-spent-600-hours-over-the-last-year-preparing-for-new-gdpr-legislation.html "Most UK SMEs spent 600 hours over the last year preparing for new GDPR legislation"). In 2020-2021, it grew by 38%. [Despite the increase in companies reporting](https://www.financedigest.com/geberit-reports-q1-beat-despite-end-of-bathroom-renovation-boom.html "Geberit reports Q1 beat despite end of bathroom renovation boom") to CDP, the quality of disclosures remains patchy and nearly 17,000 companies received the lowest possible ‘F’ grade in the NGO’s annual assessment for not reporting any data. After disclosing data, [companies are encouraged to set targets](https://www.financedigest.com/britain-toughens-up-diversity-targets-for-uk-companies.html "Britain toughens up diversity targets for UK companies") to reduce emissions, and specifically targets in line with the science of climate change and the goal to cap global warming at 1.5 degrees Celsius (2.7 Fahrenheit) above the pre-industrial average. Yet just 1,054 companies have had their targets signed off by the Science-based Targets Initiative, a collaboration between CDP and other NGOs, and less than a thousand of the CDP disclosers [report the emissions tied to the goods and services they buy and the use of their sold products](https://www.financedigest.com/feminine-hygiene-product-market-report.html "Feminine Hygiene Product Market Report"). We’re clear that for the companies coming into our system, disclosure is the first step of the journey and measurement obviously [means that you end up managing](https://www.financedigest.com/senior-managers-regime-what-does-it-mean-for-the-industry.html "SENIOR MANAGERS REGIME – WHAT DOES IT MEAN FOR THE INDUSTRY?") and, ultimately, hopefully transforming your business model,” Bartlett said. The drivers of disclosure [continue to be investors and companies](https://www.financedigest.com/different-employee-engagement-outcomes-for-u-s-and-canadian-companies-amidst-continued-economic-growth-pressures.html "DIFFERENT EMPLOYEE ENGAGEMENT OUTCOMES FOR U.S. AND CANADIAN COMPANIES AMIDST CONTINUED ECONOMIC GROWTH Pressures") pushing their suppliers to act, with further impetus coming from fresh pledges to rein in emissions at U.N. climate talks in Scotland [last month](https://www.financedigest.com/fintech-trends-to-look-out-for-during-the-last-six-months-of-2019.html "Fintech trends to look out for during the last six months of 2019"). A regional breakdown, shows the biggest jump in disclosures since Paris was from [Latin America](https://www.financedigest.com/new-office-expansion-enables-vaisala-to-accelerate-growth-in-industrial-and-environmental-measurements-businesses-professional-services-and-customer-support-the-new-office-will-cater-for-all-vaisala.html "New office expansion enables Vaisala to accelerate growth in industrial and environmental measurements businesses, professional services and customer support. The new office will cater for all Vaisala’s customers in the Latin America region."), up 332% to 1,614 from 374. [Asia climated 201% to 3,774 from 1,256 and Europe](https://www.financedigest.com/heineken-sees-europe-resilience-offseting-asia-slowdown-risk.html "Heineken sees Europe resilience offseting Asia slowdown risk"), increased 140% to 4,187 from 1,745. By country, [China stood out with a 416% rise](https://www.financedigest.com/dollar-slips-after-upbeat-china-data-euro-pound-rise.html "Dollar slips after upbeat China data; euro, pound rise") in disclosures to 1,408 from 273. (Graphic: Countries leading on corporate [climate change](https://www.financedigest.com/exclusive-world-bank-seeks-more-funds-to-address-climate-change-other-crises-document.html "Exclusive-World Bank seeks more funds to address climate change, other crises -document") disclosures this year, https://graphics.reuters.com/CLIMATE-CHANGE/jnvweajyyvw/chart.png) (Graphic: Number of corporate climate change disclosers by region, https://graphics.reuters.com/CLIMATE-CHANGE/zgvomnarrvd/chart.png) While the number of corporate disclosers jumped, a breakdown by sector shows some of the heaviest-emitting lagged in [sharing data](https://www.financedigest.com/european-shares-edge-higher-on-healthcare-lift-weak-china-data-stokes-worries.html "European shares edge higher on healthcare lift, weak China data stokes worries"). (Graphic: Increase in corporate [climate change](https://www.financedigest.com/deloitte-research-reveals-inaction-on-climate-change-could-cost-the-worlds-economy-us178-trillion-by-2070.html "Deloitte research reveals inaction on climate change could cost the world’s economy US8 trillion by 2070") disclosers by region, https://graphics.reuters.com/CLIMATE-CHANGE/gkplglqrqvb/chart.png) Just 11 coal mining companies and 63 [oil and gas producers globally reported data](https://www.financedigest.com/oil-jumps-on-lower-than-expected-us-inflation-data.html "Oil jumps on lower-than-expected US inflation data"), despite fossil fuels being the chief driver of human-driven emissions. At the other end of the scale, [electrical & electronic equipment companies](https://www.financedigest.com/why-should-you-prepare-your-company-for-the-electric-revolution.html "Why should you Prepare your Company for the Electric Revolution?") led disclosures, with 1,395. (Graphic: Top corporate [climate change](https://www.financedigest.com/scientists-in-germany-turn-up-heat-on-seagrass-in-climate-change-fight.html "Scientists in Germany turn up heat on seagrass in climate change fight") disclosers by sector, https://graphics.reuters.com/CLIMATE-CHANGE/dwpkrzkayvm/chart.png) (Editing by Barbara Lewis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---