Companies Disclosing 1.5C-Aligned Transition Plans Jump 44% to Nearly 6,000

More than 5,906 companies — one in four of those disclosing through CDP — reported having 1.5C-aligned climate transition plans in 2023, a 44% increase from the prior year, according to new CDP data. A further 8,200 companies, representing 36% of those assessed, said they expected to have a plan in place by 2025.

CDP's questionnaire, used by companies representing over 66% of global market capitalisation, includes 21 indicators covering governance, emissions reporting, strategy, target setting, financial planning, and value chain engagement. Of the 5,906 companies reporting a transition plan, 39% — roughly 2,329 organisations — already disclose data on at least 14 of the 21 indicators, indicating substantial progress toward credible plan documentation. However, only 140 companies, fewer than 1% of all CDP disclosers, reported against all 21 indicators.

European and Asian markets lead the credibility rankings. Companies listed on the FTSEurofirst 300 in Europe and the KOSPI 200 in South Korea reported the highest coverage of key indicators, at 77% and 75% respectively. Canada's S&P/TSX60 and China's CSI 300 were the weakest performers among G20 indices, with only 28% and 29% of companies covering most key indicators. The FTSE 100 ranked third globally, with 70 companies disclosing at least two-thirds of the 21 indicators.

CDP analysis shows that companies can develop a credible transition plan in under two years, with 25 of the companies assessed against all indicators having signalled an intent to draft a plan just two years earlier. Transition plan disclosure is increasingly required under mandatory reporting frameworks, including IFRS S2 and the European Sustainability Reporting Standards. CDP has also aligned with the UK Transition Plan Taskforce Disclosure Framework, allowing companies to disclose TPT-compliant plans through CDP from 2024.

Key figure — 44% increase in companies disclosing 1.5C-aligned transition plans in 2023