Companies setting climate transition plans up 44% in 2023, research shows

illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:

🗞️ Driving the news: In 2023, the number of companies claiming to have climate transition plans aligned with limiting global warming to 1.5°C surged by 44%, according to CDP research
• However, only 2% of these companies disclosed data on all 21 key metrics needed to verify their plans

🔭 The context: While 5,906 companies now claim alignment with the 1.5°C target, less than 40% provided sufficient data for verification
• As regulatory reporting remains voluntary in many countries, investor scrutiny relies heavily on transparent disclosures

🌍 Why it matters for the planet: Climate transition plans are crucial for reaching net-zero targets and mitigating climate change impacts
• However, without full transparency, progress remains difficult to track and verify, limiting the effectiveness of these initiatives

⏭️ What's next: CDP projects that an additional 8,000 businesses will implement transition plans by 2025, reflecting growing pressure for corporate climate accountability

💬 One quote: "Data on forward-looking commitments are becoming crucial tools for companies to build and maintain confidence with market stakeholders," said Sherry Madera, CDP Chief Executive

📈 One stat: Only 2% of companies disclosed data on all 21 key CDP metrics for climate transition plans

Click for more news covering the latest on corporate sustainability