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CDP, a global non-profit promoting environmental disclosure for companies and governments, announced environmental performance scores on companies for the year 2021, as reported by the organization’s press release on December 7. According to CDP, nearly 12,000 companies have reported environmental data through CDP’s platform in 2021, which presents a 37% increase in participation compared to last year. Together, the reporting companies represent over 64% of global market capitalization. CDP evaluates environmental performances in the categories of Climate Change, Forests, and Water Security. Scores range from the lowest “D-” to the highest “A” and top performers that receive an A score in any specific category are included in CDP’s prestigious annual A-List to indicate their leadership status.
Despite a larger number of reporting companies this year, the number of those achieving A scores in at least one of the three categories dropped to 272 compared to 313 in 2020, due to more stringent assessments from CDP this year. To obtain an A score, companies must demonstrate robust governance and oversight of climate-related issues, have rigorous risk management processes in place, report verified scope 1 and 2 emissions, and reduce emissions across their value chains. Only 14 companies achieved an A score across all three CDP categories, including two from Asia, namely Fuji Oil Holdings [2607:JP] and chemical and cosmetics company Kao Corporation, which are both Japanese companies.
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