The Carbon Disclosure Project (CDP) has released the findings of its annual survey of companies' environmental responsibility with a record 106 corporates, including 34 “new achievers” meeting the NGO's "A List" requirements in the category of "Water Security".
CDP's work with water security motivates companies to disclose and reduce their environmental impacts by using the power of investors and customers. The data CDP collects helps influential decision makers to reduce risk, capitalize on opportunities and drive action towards a more sustainable world.
Cate Lamb, Global Director of Water Security at CDP said: “It’s hugely encouraging to see the number of companies achieving an A for water growing from 72 last year to over 100 this year. We have also seen a record number of companies disclosing their water data through CDP in 2020. This progress is refreshing, especially in such a challenging year marked by COVID-19. Yet the water crisis is more urgent than ever – we are facing a 40 Percent shortfall in clean water supplies by 2030 if we don’t change course, and we have seen a collapse in freshwater biodiversity. Clean water is the lifeblood of the economy and society and must be protected. We need all companies to follow the lead of the A List.”
The 34 Companies to debut in this year’s “A List” for “Water Security” are:
FUJI OIL HOLDINGS INC.; TDK Corporation; Toyota Industries Corporation; Nabtesco Corporation; Sumitomo Chemical Co., Ltd.; Kering; Kia Motors Corp; Formosa Petrochemical; SANOFI; Formosa Taffeta Co.; Mars; Fast Retailing Co., Ltd.; FUJIFILM Holdings Corporation; Swire Coca-Cola Limited; Delta Electronics, Inc.; GEA Group AG; SEKISUI; CHEMICAL CO.,LTD.; Microsoft Corporation; TEKFEN HOLDİNG A.Ş.; Flex Ltd.; GlaxoSmithKline; Komatsu Ltd.; Caesars Entertainment; Endesa; LG Display; Schnitzer Steel Industries, Inc.; Taiwan Semiconductor Manufacturing; ASE Technology Holding Co., Ltd.; Swire Pacific; Intel Corporation; Canon Inc.; Samsung Electronics; Mahindra & Mahindra; Marfrig Global Foods S/A; Formosa Chemicals & Fibre Corporation; Metsä Board Corporation; Tech Mahindra; Gold Fields Limited; Colgate Palmolive Company; Nan Ya Plastics; Seiko Epson Corporation; Electrolux; Hewlett Packard Enterprise Company; PTT Global Chemical
270 companies made this year's CDP “A List” in the category of “Climate Change,” with 16 companies achieving the “A List” in the category of “Forests”.
313 companies in total were named on this year’s “A List”, a major (45 Percent) increase on last year. Along with the high levels of disclosure, this shows growing environmental awareness among the business world in 2020, according to CDP.
For climate scores this is largely because more companies are choosing to be transparent by disclosing data – in itself an important step, driven by increased market pressure for transparency. The growth in companies scoring an A for tackling deforestation and water security points to increased action in these areas, as the higher levels of disclosure does not fully account for the increase.
This year’s “A List” comes just ahead of the five-year anniversary of the Paris Agreement, with world governments expected to deliver updates on their national climate plans to build momentum ahead of COP26 (Glasgow, Scotland, November 2021).
While there has been a big increase in the “A List” this year, it still only represents a minority of companies. Most (74 Percent) of companies scored by CDP achieved D-C scores, meaning they are only just starting their environmental journey and becoming aware of how environmental issues impact their business.
Even more concerning, 3,700+ companies failed to disclose any data when requested by investors or customers, and over three times this many received an F for at least one theme. These companies are expected to face increasing pressure to demonstrate they are taking environmental risks seriously.