The Hidden Cost of Volatility Drag

That said, the recent surge in global environmental disclosures is a stark reminder that transparency and action are not just desirable but necessary. With 23,100+ companies, cities, states, and regions disclosing through CDP in 2025, it's clear that investors, policymakers, and businesses recognize the importance of environmental accountability.

The data surfaced through CDP provides companies, investors, and policymakers with the crucial insights they need to make informed, Earth-positive decisions. Despite global headwinds, CDP's numbers have ballooned from just 35 in 2015 to financial institutions representing a quarter of all global institutional financial assets. This shift towards transparency is not a coincidence; it's a response to mounting pressure from investors and cities alike.

One key driver behind this trend is the growing awareness of climate change's economic consequences. According to CDP, companies that disclose critical environmental data reduce their direct emissions by 7-10% on average within two years of an investor request. This finding is not surprising; research has consistently shown that companies with higher levels of transparency and accountability tend to have lower emissions.

Why Disclose?

Why disclose environmental data at all? The answer lies in the simple yet profound principle that knowledge is power. By sharing information about their environmental performance, companies can identify areas for improvement, reduce risks, and increase opportunities. Investors, in turn, can make more informed decisions about which investments to pursue and when.

The CDP disclosure cycle 2025 discloses support services, including reporter services and accredited solutions providers, which offer valuable insights and expertise to help companies navigate the complexities of environmental reporting. For investors, this means having access to a wealth of data and research on environmental performance, enabling them to make more informed investment decisions.

Disclosing Support - Reporter Services

One of the key benefits of CDP's disclosure cycle is the support services offered by its reporter services. These services provide companies with expert analysis and guidance on how to disclose their environmental data effectively. For instance, a company may need help developing an environmental report or identifying the most relevant data points to include.

Investors can benefit from this expertise as well, as CDP's reports and case studies offer valuable insights into best practices for disclosing environmental information. By following these recommendations, companies and investors can optimize their disclosure efforts and make the most of the available information.

Disclosing Support - Accredited Solutions Providers

Another critical aspect of CDP's disclosure cycle is the support provided by its accredited solutions providers. These experts have undergone rigorous training and have developed specialized skills in environmental reporting, allowing them to offer tailored advice and guidance to companies.

For investors, this means having access to a network of experts who can provide actionable insights on how to disclose their environmental data effectively. By leveraging CDP's support services, investors can gain valuable knowledge and expertise, enabling them to make more informed investment decisions.

Use Data

One of the most critical aspects of CDP's disclosure cycle is the use of data itself. By providing access to a wealth of environmental information, CDP empowers companies and investors alike with the tools they need to make sense of the data.

In 2025, CDP disclosed over 1,000 new corporate scores and public company scores, including notable examples such as Walmart's 99% carbon neutrality pledge. These disclosures demonstrate the importance of using environmental data in making informed decisions about investment opportunities.

Scores and A Lists

The data surfaced through CDP provides companies, investors, and policymakers with a wealth of information on their environmental performance. According to CDP, 23,100+ companies disclosed critical environmental data in 2025, representing two-thirds of global market capitalization.

Within two years of an investor request, companies disclosing through CDP reduce their direct emissions by 7-10% on average. This finding is not surprising; research has consistently shown that companies with higher levels of transparency and accountability tend to have lower emissions.

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