Almost eight out of ten companies on track to meet their climate objectives link them to the remuneration of their managers, according to the ‘Corporate Health Check’ report that CDP, a global non-profit organization, has published on the eve of the annual meeting in Davos .
The document, which will be formally presented in Switzerland next week during the meeting of the World Economic Forum (WEF) in collaboration with this organization and the consulting firm Oliver Wyman, evaluates how the world’s largest companies respond to the climate crisis.
CDP analyzes the transparency, objectives, governance, strategy and progress on climate and environment of large corporations that represent 67% of the global market value and highlights the four “key levers” that are already being used to “make positive decisions for the Earth.”
These levers are remuneration targets, carbon pricing, climate transition plans and supplier engagement, the report notes.
The report highlights that 78% of leading companies already link the remuneration of their managers to climate results; 41% set the carbon price internally and 87% work on climate issues throughout the value chain with suppliers and customers.
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64% of companies already have climate transition plans: report
Furthermore, 64% of companies “that are on track with their emissions goals” already have climate transition plans compared to 36% that are “in a situation of delay.”
The report notes a “disconnect” between companies “that meet the minimum” and those that actively use their disclosure data to make “Earth-positive decisions” in their corporate strategy.
In this sense, almost half of the global companies evaluated reveal their main emissions data and adopt concrete measures, although only 10% show “significant ambition” in all key areas and just 1% “are simultaneously acting on all four.” identified levers for change, addressing climate and nature issues together and using that data to make business and investment decisions.”
The report includes the opinion of several sector specialists such as James Davis, partner and co-director of Climate and Sustainability for Europe at Oliver Wyman, who has highlighted the “important advances made by the business sector in recent years” in climate matters but also “ the great gap that continues to exist in terms of ambition and results.”
The general director of the WEF himself, Gim Huay Neo, has described the current push by large companies in this regard as “positive”, although he has insisted that “they must take advantage even more of the power of data, technology and innovative partnerships.” to jump from crisis to opportunity for people, planet and prosperity.”
With information from EFE.
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