Companies that lead in environmental transparency are also outperforming peers financially. Our recent report, “The 2026 CDP Corporate Health Check,” shows that organizations at the forefront of environmental disclosure and stewardship are not only advancing climate and nature goals, but also gaining a competitive edge. As environmental risks intensify globally, transparent disclosure and robust strategies are proving essential — both for managing risks and for unlocking significant economic opportunities.
The report, produced jointly by the CDP and Oliver Wyman, offers a detailed analysis of corporate efforts in 2025 to protect the Earth’s climate, forests, and water security. It shows the correlation between cutting emissions, investing in environmental stewardship, and positive financial performance.
How environmental action is showing up in financial results
Leading companies in the “Health Check” achieved a 4% compound annual growth rate (CAGR) in market capitalization between 2022 and 2025, versus 1% for others. Over the last year, these companies also identified $218 billion in opportunities to create a low-carbon economy, demonstrating how environmental commitment can fuel new revenue streams and operational efficiency.
Despite geopolitical and deregulation challenges, sectors such as apparel, biotech, and food and beverage have been advancing their sustainability performance and disproving a frequently voiced charge that environmental leadership harms profitability.
The four levers separating environmental leaders from others
The report focuses on four critical levers that distinguish well-performing environmental leaders. These include linking executive pay to environmental targets; setting climate transition plans aligned with 1.5 degree Celsius; instituting robust governance and management of dependencies, impacts, risks, and opportunities; and engaging suppliers and customers in the value chain on environmental issues.
Around 15% of companies assessed demonstrate these leadership traits, which set a clear strategic roadmap for others to follow. This leadership is defined not just by their corporate disclosures but also by measurable reductions in emissions and by nature-positive efforts such as deforestation-free commodity sourcing.
How policy and markets are driving uneven environmental gains
The uneven pace of progress across sectors and regions reflects the current, globally fragmented policy and regulatory landscape. For example, companies in Japan and the European Union score significantly higher than those in the United States, partly because of differences in government support and market pressures.
Many companies also face challenges, including rising energy costs, supply chain constraints, and fluctuating subsidies, which affect sectors such as power generation and transportation. Despite these headwinds, environmental disclosure and leadership remain resilient and continue to expand.
The urgent need for adaptation and resilience investment
While companies increasingly identify substantial physical environmental risks — estimated at $1.47 trillion in disclosed impacts — only a small fraction are investing accordingly. Adaptation investment lags behind the scale of risk exposure, with just 9% of companies reporting substantial funding in physical resilience measures, totaling $84 billion.
Closing this adaptation gap represents a strategic growth opportunity. Investments in resilience can yield more than tenfold returns, underscoring why forward-looking organizations are integrating adaptation into long-term business models.
Why environmental leadership is central to growth and resilience
“The 2026 CDP Corporate Health Check” underscores that corporate environmental leadership is increasingly inseparable from business success. The companies that transparently disclose, rigorously manage environmental risks, and strategically invest in climate transition and adaptation are better positioned to grow, compete, and thrive.
This report sends a strong market signal that proactive environmental action is both an economic advantage and a necessity in a changing world, inviting all businesses to accelerate their journey toward a resilient, Earth-positive economy.
