In its most recent analysis of business submissions, the nonprofit platform CDP reported on Wednesday that fewer than one in 200 corporations that submit climate change-related data to a key environmental transparency platform have credible climate transition strategies.
The data highlights the size of the discrepancy between company commitments to achieve net-zero carbon emissions and the specific plans outlining how a company would adapt its whole business model to achieve those goals.
Only 81, or 0.4%, of the 18,600 enterprises that CDP received data from, submitted information regarding the 21 key metrics that CDP puts in a questionnaire and which it says represents a credible plan.
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The important indications for CDP range from financial planning to whether the board of directors of the corporation has oversight of a climate plan.
Amir Sokolowski, Global Director of Climate, at CDP said in a statement that “The need for companies to develop a credible climate transition plan is not an additional element but an essential part of any future planning.”
“Companies must evidence they are forward planning in order for us to avert the worst impacts of climate change and to send the correct signals to capital markets that they will remain profitable,” the statement added.
Story was adapted from Reuters.
