Companies adopting 1.5°C-aligned climate transition plans jump by 44%, data shows
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Data released by CDP shows the number of companies disclosing they have 1.5 °C-aligned climate transition plans has jumped by around 44%.
According to CDP’s media release, the 44% increase means that over 5,906 companies (1 in 4) reported having climate transition plans in place last year through CDP, which runs an independent environmental disclosure system.
A further 36% (8,200) disclosed that they expected to create one by 2025.
Climate transition plans are time-bound action plans that detail how a company’s assets, operations, and overall business model will shift to align with a 1.5°C decarbonization pathway.
Regulators in the US, European Union, and other regions are increasingly mandating company reporting. However, in many countries, it remains voluntary, with some boards advancing their actions ahead of policy changes.
Read more: UK’s Asset Owner Introduces Climate Transition Index in £160 billion decarbonisation push
Sherry Madera, CEO of CDP, said, “This momentum is unmistakable, with 8,000 more businesses looking to have their transition plans in place by 2025. This is encouraging and a smart business move, as climate transition plans are an essential tool for credible businesses as they shift to Net Zero.”
Read more: European Investment Fund Partners with Finnish Banks to Offer €1 Billion in Climate-focused Loans
Additionally, the report also shows that companies can develop and disclose a ‘credible plan’ in under two years.
Madera added, “Having robust plans is becoming more important for accessing capital, driving business efficiencies, and complying with regulatory and market demands.”
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