CDP 2025

Corporate
Health Check
The annual state of Earth-positive
business action

In collaboration with
 Introduction
The health of the economy and the health of the Earth The 2025 snapshot of business progress finds that:
1
are inextricably linked. Climate inaction could reduce
global gross domestic product (GDP) by 18%, or about 1 Too few companies are showing ambition. Only one
2
US$38 trillion, by 2050. While the threat is becoming in 10 companies are embedding Earth-positive decision-
more evident with each passing year, greenhouse making throughout their business models, with too
gas emissions continue to rise, and economic growth many in the lowest level of the Health Check or just
chips away at nature. meeting the minimum.

To help quantify how effectively large corporations are 2 Corporate transparency is leading to climate and
integrating Earth-positive decisions into their business nature action. Health Check companies disclosing
models, CDP has developed an annual corporate through CDP in recent years cut emissions by 2% per
health check, in collaboration with Oliver Wyman and annum, even as global emissions rose 1% annually.
the World Economic Forum. The indicators for the Still, only one in three businesses are on track to meet
Corporate Health Check were developed as part of the their own emissions targets, with European companies
World Economic Forum’s State of Nature and Climate ahead of those in other regions.
publication. This report — done in collaboration with
CDP and the Potsdam Institute of Climate Impact 3 Bringing the planet into the boardroom is critical.
Research (PIK) — places the latest data on planetary Companies making the most progress are those that
health next to data on corporate action. most effectively pull key governance and strategy levers,
including the eight in 10 frontrunners linking executive
Since 2000, environmental disclosure through CDP pay to climate goals.
has provided unparalleled insights into the business
response to the challenges our planet faces. Today, 4 Protecting the planet while pursuing profit is
nearly 25,000 companies representing 67% of global possible. The market capitalization performance of
3
market capitalization disclose through CDP. This companies on track with emissions targets has been
report assesses the current state of climate and mixed across sectors. Where climate frontrunners in
nature progress of the most impactful among them. the transportation, apparel and services sectors have
It finds only 10% of these companies demonstrate outperformed those not on track, the reverse was true
tangible action to address the climate and nature in some high-emitting industries.
emergency, with just 1% reaching the highest level
assessed. These companies on track to deliver their This report shows that companies taking a leadership
targets are successfully pulling four key business position can drive change. But many more companies
levers by integrating their disclosure data into their need to increase their action to cut emissions and
governance and strategy. Disclosure alone is an address nature impacts. And policymakers need to
important first step, but businesses must pull other create the conditions to support and reward Earth-
levers using this data to drive Earth-positive action. positive decision-making.

About the CDP Corporate Health Check

The CDP Corporate Health Check assesses business progress across five critical climate and nature areas:
disclosure, target setting, governance, strategy and progress. Companies are assessed on aggregate and
assigned one of four levels — Level 1: Falling Behind, Level 2: Meeting the Minimum, Level 3: Showing
Ambition and Level 4: Charting Change based on their disclosure through CDP in 2024. The indicators covered
have been informed by the demands of global reporting standards and frameworks. Advancement across
each level illustrates that companies are engaging with key elements of incoming regulatory requirements and
stakeholder expectations. Key indicators included in the assessment are listed in Figure 2 below.

1
[Link]
2
[Link]
3
This report uses data from a subset of the global companies reporting to CDP. The sample used represents over two thirds of the world's global stock market capitalization and 17% of total global
emissions. It excludes companies that choose to only disclose to specific audiences including their customers (via CDP Supply Chain offering), and other specific disclosure use cases. The sample
includes over 6800 companies headquartered around the world.

CDP 2025 Corporate Health Check 2

Earth-
positive
means acting in ways that protect
and restore the environment and
reduce negative impacts on the planet,
alongside achieving business objectives.

CDP 2025 Corporate Health Check 3

A shortage of
ambition 1

CDP 2025 Corporate Health Check 4

 1. A shortage of ambition
Just one in 10 companies are embedding Earth-positive decision-
making across their business. Most companies are falling behind what
the most robust regulation and the planet demand.
The CDP Corporate Health Check is a new The 2025 CDP Corporate Health Check reveals
annual assessment of business progress across that just under half (49%) of disclosing companies
five critical areas: disclosure, target setting, included in this analysis are “Meeting the Minimum”
governance, strategy and progress. Just 10% in Level 2 across the climate and nature indicators.
of companies are assessed in the higher Levels This includes disclosing operational (Scopes 1 and
3 and 4 of the Health Check, which represent 2) emissions data, setting targets, and integrating
tangible action across all areas. The higher climate change (at least in a limited way) in corporate
levels include transparently reporting their full governance, strategy, and plans. But as the detailed
emissions and nature impacts, setting relevant Indicator Overview shows, much greater progress is
environmental targets, putting in place robust needed by many more companies to drive meaningful
governance, and establishing climate and business change in line with planetary health, including
nature strategies that deliver progress. The prioritizing nature together with climate. This is
small group of companies leading in the Health necessary if companies are to be ready to comply with
Check account for nearly 20% of the total market more demanding regulation and market expectations,
capitalization assessed. which are reflected in Levels 3 and 4.

10%
Percentage of companies across all areas reaching:
of companies
At least 'Meeting the Minimum' (L2) 49% representing
At least 'Showing Ambition' (L3)

17%
9.9% of the total market
'Charting Change' (L4) 0.8% capitalization are in levels 3
or 4 across all areas.
%

%
0%

10

20

30

40

50

4
Fig 1: CDP Corporate Health Check Overview

Values based on % of Level 1 Level 2 Level 3 Level 4

companies assessed Falling Behind Meeting the Minimum Showing Ambition Charting Change

47%
Disclosure 27%
9% 17%

Environmental 36% 35%

Targets 14% 15%

Governance 38% 38%

and Incentives 10% 14%

57%
Strategy
and Plans 27%
12% 4%

Progress 37% 31%

20% 12%

4
Financial services companies are excluded from the progress area due to comparability with the progress metric used to assess real economy companies' emissions reduction progress

CDP 2025 Corporate Health Check 5

 The CDP Corporate Health Check Levels

Level 1 Level 2
Falling Behind Meeting the Minimum
Exhibiting no or limited emissions related Exhibiting disclosure on Scope 1 and 2
disclosure or targets, poor governance, no emissions, emissions target(s) across any
integration of climate or nature into business scope, board oversight and risk assessment
strategy, and no impact reductions. on climate, and at least some positive
progress on climate targets.

Level 3 Level 4
Showing Ambition Charting Change
Exhibiting disclosure on full value chain emissions Exhibiting disclosure on full value chain emissions
(Scope 1, 2 and 3) and on at least one material (Scope 1, 2 and 3) and on the majority of material
nature topic, with emissions targets covering nature topics, with net-zero or SBTi-approved
the value chain and targets in at least one climate targets and majority of nature topics
nature area. Stronger environmental governance covered by targets. Robust environmental
mechanisms, integration of climate and nature governance and integration of climate and nature
into strategy, and showing on track progress to into strategy, including aligning investment with
reach emissions target while making positive transition plan. On track to reach climate target and
progress on at least one nature target. positive progress on majority nature targets.

Strong emissions disclosure but wider Most companies still fare poorly on adopting
focus needed relevant targets and strategies, and thus make little
demonstrable progress in reducing their climate and
Companies are showing the most progress in nature impacts. While two-thirds of companies have set
their transparency. But important gaps remain, company-wide targets, a key element of our “Meeting
particularly on disclosure of Scope 3 emissions, the Minimum” Level 2 status, few are meeting the
typically the emissions generated by a company’s basic requirements of more demanding standards and
supply chain and in the purchase and use of frameworks. For example, only 33% have targets that
products and services. Although 79% of CDP cover their value chain, and just 40% of companies have
disclosures include some Scope 3 emissions targets that cover most of their material nature impacts.
in addition to Scopes 1 and 2, 45% are not
yet reporting on their most material Scope 3 On strategy and planning, almost nine out of
categories, even though countries like the United 10 companies (89%) now perform climate risk
Kingdom, South Korea, Canada, and others are assessments, one of the key indicators within Level
moving toward mandatory disclosure of Scope 3. 2. This is a crucial step in understanding a company’s
risks and opportunities from climate change and is
Disclosure on nature issues, required to advance required in many jurisdictions, including the United
to higher levels of CDP’s Corporate Health Check, Kingdom, the European Union, the United States, Japan,
remains limited. For instance, water is a material Singapore, and New Zealand. Some jurisdictions, such
issue for the vast majority of companies across as the EU, have also moved to require companies to
industries, yet only 64% of these companies disclose create a transition plan — a time-bound document that
data5. Similarly, under half (46%) of companies with sets out how business models will remain relevant in a
a material impact on forests disclose data on their net-zero economy. Only 45% of companies are meeting
forest-related practices. this bar globally, with significant regional disparities.

5
Under CDP’s Industry Impact Classification, water is a material issue for 75% of companies and forests for 28% of all companies assessed. All nature-related statistics in the report relate to companies for
which the nature topic is considered a material issue.

CDP 2025 Corporate Health Check 6

 6
Fig 2: CDP Annual Health Check for Business – key indicators included

Key indicators included in the CDP Corporate Health Check

Needed to Needed to
Indicator % companies reach Level Indicator % companies reach Level

Disclosure Strategy & Plans

Scope 1 and 2 disclosure 2 Climate risk assessement 2

Value chain engagement
Scope 1, 2 and 3 disclosure 79 3 on climate
3
Scope 1, 2 and material
Scope 3 disclosure
4 1.5°C transition plan 3
At least 5% CapEx aligned
Biodiversity disclosure 3 with transition plan
4

Forests disclosure 3 Environmental policy in place 3

Integration of environmental
Water disclosure 3 issues into business strategy
3
Integration of environmental
issues into financial planning
3

Environmental Targets Biodiversity impacts/

dependency assessment
3
Any company-wide emissions target 2 Forests risk assessment 3

Scope 1, 2 & 3 emissions targets 3 Water risk assessment 3

Scope 1, 2 & 3 emissions targets
(net-zero or SBTi-approved)
4 Value chain engagement - forests 3

Biodiversity target 3 Value chain engagement - water 3

Forests target 3

Water target 3
Progress
Disclosure of progress on
emissions target
2
Governance & Incentives Absolute emissions reduction
since 2023
2
Board level oversight of climate 2
On track with majority of
emissions targets
3
Monetary incentives for
management on climate
3
On track with SBTi-approved
target or net-zero target
4
Board capability on climate 3
Progress on biodiversity target 3
Internal carbon pricing 4
Progress on forests target 3
Board level oversight of biodiversity 3
Progress on water target 3
Board level oversight of forests 3

Board level oversight of water 3

Monetary incentives for
management on biodiversity
3
Monetary incentives for
management on forests
3
Monetary incentives for
management on water
3 Climate Nature Level number

6
Nature statistics are calculated as a share of companies for which water-/forest-related issues are considered material (according to CDP Industry Impact
Classification). Biodiversity is considered as a material issue across all sectors. Reaching Level 3 in the CDP Corporate Health Check requires companies to
disclose data or act on at least one of the three nature-related material areas, whereas Level 4 requires reporting or acting on the majority of these areas.

CDP 2025 Corporate Health Check 7

From
transparency
to action
2

CDP 2025 Corporate Health Check 8

 2. From transparency to action
What matters most is results, and only one in three companies are on
track to reach their own emissions targets.
Just 35% of companies are on track to meet their Apparel, retail and power generation companies have
own targets for emissions reductions.7 Regionally, demonstrated the most progress and are at least five
Europe leads with 46% of companies on track. percentage points above the global average of 35%.
Asia and North America come next with 33%,
followed by Africa, Latin America, and Oceania — Looking at nature, only 22% of companies have
all around 25%. indicated progress on their water targets, and 15%
have reported progress on their forest targets.
Looking at the 10 largest economies, more than
40% of companies in the UK, France, Italy, Germany, Halfway through the so-called decade of action,
and Japan are progressing in line with their targets. this analysis demonstrates the acceleration that is
Yet, in the US, Canada, India, and Brazil, only one- needed if the global economy is to reach net-zero and
third or less are on track. In China, less than one- companies are to achieve their own targets and move
fifth (19%) are on track to achieve their targets. toward the change the planet needs.

65% 68% 54% 67% 75% 74% 74%

35% 32% 46% 33% 25% 26% 26%

Total Asia (including Middle East) Europe North America Africa Oceania Latin America

Companies not on track with emissions targets Companies on track with emissions targets

Fig 3: Companies on track to reach their climate targets, per region

While global emissions have continued equivalent to the total annual emissions of

2%
to rise, an analysis of emissions trends the United Kingdom.
between 2016 and 2023 shows that
companies disclosing consistently However, efforts still fall short of what is
between these years have reduced necessary, with these companies collectively
their Scope 1 emissions by an representing over 3.6 billion tonnes of CO2e,
average year on year rate of 2%. That and the average rate of reduction insufficient
compares with an average 1% annual to achieve a 1.5°C -aligned pathway. Realizing

average increase in global emissions during

the same seven-year period.8
net-zero throughout real economy value
chains will require companies across the
emissions Aggregating the progress of each
whole economy acting much faster to
address their full emissions, Scopes 1 through
reduction company against its individual base- 3. Starting in 2016 and assuming a linear

rate year emissions, the data reveals

collective emissions reductions of
emissions reduction trajectory, companies
would have had to reduce emissions by 7%
per year over 400 million tonnes of carbon annually to reach net-zero by 2030 and by 3%
dioxide equivalent (CO2e). That’s annually to reach it by 2050.9

7
'On track' requires that at least 50% of a company's targets must exhibit average progress that follows a linear trajectory, and that the overall progress across all reported targets is positive.
8
EU Emissions Database for Global Atmospheric Research - [Link]
9
Emissions reduction trajectory is calculated based on a linear reduction from 2016 to the target year for Net Zero. Percentage emissions reduction statistics are calculated as a proportion
of the emissions recorded in 2016.

CDP 2025 Corporate Health Check 9

Bringing
the planet into
the boardroom
3

CDP 2025 Corporate Health Check 10

 3. Bringing the planet into the boardroom
With eight in 10 frontrunners now linking executive-level pay to climate
goals, companies making the most progress are those that most
effectively pull key governance and strategy levers.
Studying frontrunners — companies advancing most in the progress dimension (Level 3 and 4) of the CDP
Corporate Health Check — reveals four levers for driving change. These four levers are common in most
companies considered on track with their emissions targets and making progress on at least one nature topic.
Likewise, they are being pulled simultaneously by the 1% of companies assessed in Level 4 – Charting Change
– illustrating that they are embedding sustainability more holistically in corporate strategy.

87%
78%
64% 62%
48%
41%
36%

20%

1.5°C climate transition plan Internal carbon price Link executive pay to climate Value chain engagement

Frontrunners (Health Check Level 3 or 4 on progress) Laggards (Health Check Level 1 or 2 on progress)

Fig 4: Critical levers for driving Earth-positive decisions

Lever Lever
Creating a 1.5°C-aligned Putting a price on carbon
climate transition plan
Around 40% of frontrunners are pricing
Almost two-thirds (64%) of carbon internally, compared with only
frontrunners have taken this step, 20% for the rest of companies assessed.
compared with only 36% in the European companies are twice as likely
rest of the sample. Companies in as North American ones to set internal
the manufacturing and services carbon prices, and the prices they set are
sectors are the furthest ahead on average 35% higher than the global
of their sector counterparts in average, reflecting the influence of the
setting up transition plans. mandatory EU Emissions Trading System
in Europe which puts a price on carbon.

Lever Lever
Linking executive pay to Engaging across the value chain
environmental targets
A remarkable 87% of frontrunners actively
Around 80% of frontrunners on work with suppliers and customers to
track with targets have established reduce emissions across their value
incentives for their management teams chains, compared with 62% in the wider
tied to climate action, compared with market. A similar trend can be seen
48% across remaining companies. on nature topics, with frontrunners
Frontrunners are also about 20 significantly more likely — by a factor of
percentage points more likely to have 20 percentage points — to be engaging on
linked incentives to nature goals. water and forests than their peers.

CDP 2025 Corporate Health Check 11

Protecting
the planet and
pursuing profit
4

CDP 2025 Corporate Health Check 12

 4. Protecting the planet and pursuing profit
Leading companies show that sustainability doesn’t necessarily cost
them in financial performance, if the right conditions are in place.
Companies are often hesitant to fully commit to a progress on climate targets experienced a similar
green transition because of what those strategies pace of growth in market capitalization since 2022
might mean for their bottom lines. To some, it’s (+10% per year) to those that that are not on track
either planet or profits. The CDP Corporate Health to deliver their targets. But as the chart shows,
Check finds the reality to be more nuanced. On performance has varied significantly across the 13
average across sectors, companies demonstrating sectors analysed.

19%

16% 16%
14%
13% 13%
12% 12% 12%
11%
10% 10% 10% 10% 10%
9%
7%
6% 6%
5% 5% 5%

2% 3% 3% 2%

All Fossil Power Materials Infra- Manu- Biotech, HC F&B and Transport Apparel Retail Hospitality Services
Companies Fuels generation structure facturing & pharma Agriculture services

Emissions
intensity High Low

Companies not on track with emissions targets Companies on track with emissions targets

Fig 5: Annual growth (2022-24) in market capitalization of companies on track to meet their target(s), compared to those not on track
Values on graph are rounded to nearest whole number

In some, like transport services, apparel, and The same cannot be said for several high-emitting
services, companies on track with their targets have industries. In energy, materials and infrastructure,
realized superior market cap growth compared with companies not on track with their emissions targets
peers. In these industries, a proactive stance on have outperformed in terms of market cap growth.
sustainability also seems to come together with a The economic balance shifted back in favor of fossil
broader leadership position in the market. fuels in many industries, as higher energy prices
pushed up returns on legacy assets while financing
One explanation is that climate frontrunners are for new lower carbon assets became pricier with
carving out winning positions in fast-growing higher interest rates. This challenge for low-carbon
markets where new greener technologies are alternatives was reinforced by elevated risks
successfully scaling with the right conditions in associated with nascent technologies.
place. For instance, transportation benefited from a
growing interest in electric vehicles (EV) and the push The challenge companies face is that conventional
to build battery factories to supply EV production. technologies simply offer a far more compelling
Between 2022 and 2023, more than US$275 billion business case for investment in too many instances,
was pumped into EVs and US$195 billion flowed to which reinforces the reluctance to pursue a new course
develop of battery capacity.10, 11 Government support through major investments that carry a higher risk.
through subsidies and incentives, particularly in the This is in clear view in this year’s CDP Corporate Health
US and China, has been a key part of this story. Check, as just 9% of companies reported to have

10
[Link]
11
[Link]

CDP 2025 Corporate Health Check 13

 aligned at least 5% of their capital expenditure with their aligned with the needs of the planet. Green markets
climate transition plan. In the case of the fossil fuels are projected to grow — from US$5 trillion in 2024 to
and power generation sectors, the economic case is US$14 trillion by 2030 — creating opportunities for
bolstered further by continuing government subsidies, companies to develop new avenues for growth and
the limited adoption of carbon taxes and pricing establish new sources of competitive advantage.12
schemes across the globe, and the high cost of capital
in the current climate for transition solutions. Economic policy has an important role to play to
help create the conditions for companies to thrive
For the green transition to accelerate across the financially as they move toward more sustainable
economy, profit incentives must be more closely business models.

What’s next?
Follow the leaders to emerge from the corporate
community. The convergence of
Science has given our planet a voice, economic action and science in this
which is still too often drowned out research underscores the importance
by the prospect of short-term profits. of environmental data disclosure.
But as the conditions facing Earth Business leaders have a responsibility
deteriorate, business leaders are to share information with the market,
listening, and the levers being pulled to if they are to participate in and
drive success for leading companies profit from it. It is the sharing of this
to reduce their environmental impacts information that will ensure capital
is a model that companies globally markets can thrive in a way that truly
can follow. There is no time to waste. balances people, planet and profit.
Preparing for the transition isn’t
something that can be kicked down the Our inaugural Corporate Health Check
road by five or 10 years. shows that progress on climate
and nature can coexist with strong
The first CDP Corporate Health Check financial performance, and companies
shows the need to re-examine priorities taking a leadership position can drive
and timeframes, set clearer goals, and change. But many more companies
embed climate and nature targets in need to follow the lead of the Health
governance, strategy, and financial Check frontrunners, and policymakers
plans. With science and business need to provide support and incentives
now coming together in the World to Earth-positive businesses. In a
Economic Forum’s new annual “State of rapidly changing world, there is no
Climate and Nature” publication, more guarantee that the trailblazers of today
productive decision-making should will be the trailblazers of tomorrow.
be enabled, allowing real leadership Those already charting change cannot
and more widespread participation be complacent.

12
[Link]

CDP 2025 Corporate Health Check 14

 Enquiries Acknowledgments and contributions
media@[Link] Oliver Wyman

James Davis
Partner, Financial Services, Co-head of Climate and
Sustainability Europe

Dr. Thomas Fritz

Partner, Energy and Natural Resources, Co-head of Climate and
Sustainability Europe

Shivangi Tiwary
Associate

Hugo Castelot Jollivet

Senior Consultant

WEF

Gim Huay Neo

Managing Director, World Economic Forum

Hashendra Wijesinha
Lead, Strategy and Program Management, World Economic Forum

CDP Worldwide
60 Great Tower Street
London
EC3R 5AZ
Tel: +44 (0) 203 818 3900
@cdp
[Link]

About CDP
CDP is a global non-profit that runs the world’s only independent environmental disclosure system.
As the founder of environmental reporting, we believe in transparency and the power of data to
drive change. Partnering with leaders in enterprise, capital, policy and science, we surface the
information needed to enable Earth-positive decisions. We helped more than 24,800 companies
and almost 1,000 cities, states and regions disclose their environmental impacts in 2024.
Financial institutions with more than a quarter of the world’s institutional assets use CDP data to
help inform investment and lending decisions. Aligned with the ISSB’s climate standard, IFRS S2,
as its foundational baseline, CDP integrates best-practice reporting standards and frameworks
in one place. Our team is truly global, united by our shared desire to build a world where people,
planet and profit are truly balanced. Visit [Link] or follow us @CDP to find out more.

Visit [Link] or follow us @CDP to find out more

CDP 2025 Corporate Health Check 15

CDP 2025 Corporate Health Check