CDP (formerly the Carbon Disclosure Project) is the leading global environmental disclosure system, providing a voluntary framework for companies to report on Climate, Water Security, and Forests.
Every year, thousands of organisations submit reports detailing their environmental impact and management strategies. CDP rigorously evaluates corporate environmental performance, assigning scores from A to D based on companies’ transparency, governance, and measurable actions towards sustainability. Those achieving an A-List status earn significant recognition for demonstrating leadership in environmental action.
Following the release of company scores in February, CDP unveiled its first Corporate Health Check Report, offering key insights into the quality and maturity of this year’s disclosures. The report evaluates five critical areas: Disclosure, Environmental Targets, Governance and Incentives, Strategy and Plans, and Progress. A major takeaway is CDP’s urgent call for businesses to go beyond disclosure and take meaningful action through tangible solutions, innovations, and projects to close the gap between ambition and reality.
“Most companies are falling behind what the most robust regulation and the planet demand.”
Corporate Health Check Report – CDP, 2025
Two areas of particular concern are Environmental Targets and Progress. More than a third of the companies analysed were categorised as ‘Falling Behind’ in the Progress category. Despite the growing number of businesses reporting to CDP on Climate, only 35% of those assessed are on track to meet their climate targets, with no region exceeding the 50% mark. The situation is even more concerning for Water Security, where disclosure rates are lower still. While two-thirds of companies that identify water as a material issue report to CDP, only 22% of those companies indicate any progress against water-related targets.
Snapshot of business progress against CDP category rankings
Source: Corporate Health Check Report – CDP, 2025
Many organisations have expressed frustration over their scores, particularly as sustainability teams grapple with increasing reporting demands. Executives are pushing for top-tier results without equipping their teams with the necessary resources to embed sustainable practices effectively. The Health Check Report reveals that high-scoring companies do more than talk about sustainability; they weave it into their corporate culture and strategy, integrating climate and nature goals as drivers of change. Top-down engagement, from boardroom decisions to executive incentives, is essential in fostering accountability and driving impactful investment in sustainability initiatives.
Despite growing participation in CDP reporting, too many businesses are failing to deliver meaningful progress. Almost half (49%) of companies sampled are simply ‘Meeting the Minimum’ by focusing on disclosure alone, while fewer than 1% have fully integrated Climate and Nature into their strategy to earn a place in the ‘Charting Change’ category across all five areas.
Key Takeaways
- Businesses are underperforming against environmental targets.
- Water security remains an underreported and under-addressed issue.
- Companies need to shift from disclosure to action to stay within planetary boundaries.
At Waterscan, we understand the complexity of CDP reporting and the pressure businesses face to achieve and maintain top scores. Our bespoke and data-driven CDP workshop packages simplify the process, allowing sustainability teams to focus on meaningful action rather than the intricacies of reporting. By partnering with us, companies can move beyond compliance to realise cost savings, drive real progress on water consumption reduction and strengthen ESG credentials.
