According to the environmental transparency agency Carbon Disclosure Project (CDP), NYK and K Line are the only shipping representatives that received top grades, for their environmental performance.
More specifically, more than 330 global companies worth nearly US$11 trillion in market capitalization have been highlighted for their environmental transparency and action on climate change, forests and water security by CDP.
These companies have been named on CDP’s annual A List, out of nearly 15,000 companies scored on their environmental disclosure.
For shipping, NYK and K Line find themselves as the only representatives that got a top score for their climate performance.
As CDP said, “while more companies than ever are factoring their climate change impacts into business-as-usual, with 280+ companies scoring an A for their climate change disclosures (a 34% increase since 2021),” progress remains slow on deforestation and water security.
In fact, there was only a 4% increase in the number of Forests A Listers (just 1 more company than last year) and a 12.7% decrease in the number of Water Security A Listers (118 in 2021 to 103 in 2022).
The science is clear: limiting warming to 1.5°C requires businesses to tackle all environmental issues together. Yet just 12 companies were awarded a Triple A for their transparency and action across climate change, forests and water security, down from 14 last year
In 2022, CDP included new or more stringent scoring on 1.5°C aligned climate transition planning. A List companies are better equipped to follow these targets up with clear, timebound plans for implementing them, with 95% of Climate Change A List companies reporting that they have a climate transition plan which aligns with a 1.5°C world (compared to 52% of A- to B- scoring companies, and 21% of C to D- scoring companies).
However, many companies are failing to disclose. More than 29,500 companies worth at least US$24.5 trillion in market capitalization scored an F for failing to respond to disclosure requests from their investors and clients or providing insufficient information in their responses.
59% of companies scored between D- and C, meaning they are beginning to recognize their environmental impacts and are at the start of their disclosure journey.
Furthermore, many companies also remain stagnant, with 66% of D- to A- scoring companies in 2021 not improving their scores in 2022.
Most [companies] are still not managing all environmental issues holistically, and far too many are remaining complacent or failing to respond at all
stated Dexter Galvin, Global Director of Corporations & Supply Chains at CDP.
