23,000 Companies Representing US$67 Trillion Disclose Environmental Data to CDP in 2023

More than 23,000 companies with a combined market capitalisation of US$67 trillion disclosed environmental performance data to CDP in 2023, a 24 percent increase from 2022. The expansion marks an over 140 percent rise in disclosure since 2020, with around 8,000 companies reporting to CDP for the first time.

CDP's 2023 disclosure data reveals growing corporate action across water, forests and climate themes. Thirty percent of water disclosers set water withdrawal reduction targets, up sharply from 14.6 percent in 2022, with 120 companies saving 70,134 million cubic metres of water — equivalent to ten times the volume of Loch Ness. On deforestation, 52 percent of companies that have disclosed consistently since 2020 report being close to eradicating deforestation for at least one commodity, a 40 percent increase from 2020 levels. However, this still represents only 35 percent of all companies disclosing on forests in 2023.

On energy, 56 percent of CDP's 23,000-plus disclosers in 2023 reported their energy consumption, but 44 percent did not disclose energy use data. Only 10 percent of all disclosing organisations have set renewable energy targets. Financial institution disclosure reveals that almost 50 percent of the 575 financial institutions disclosing in 2023 report holding an estimated US$9 trillion in fossil fuel financing — equivalent to the combined GDP of Japan and Germany. The fossil fuel sector's response rate to CDP's water risk questionnaire stood at just 21 percent despite its significant impact on water systems.

CDP's data shows that 52 percent of companies disclosing on climate identified exposure to substantive climate-related financial risks, while 63 percent identified climate-related opportunities. India's forests are directly referenced in the report, which notes that nearly four million hectares of pristine forests were destroyed globally in 2022, releasing 2.5 gigatonnes of CO2 equivalent — equal to India's annual fossil fuel emissions. Financial institutions are urged to phase out fossil fuel exposures and expand portfolio-level nature and water risk assessments to keep pace with the scale of environmental risk materialising across global markets.

Key figure — US$9 trillion in fossil fuel financing reported by 50% of the 575 financial institutions disclosing to CDP in 2023