New research from the CDP has found that whilst failure to address environmental risks presents the threat of financial loss, corporations who take climate action can see notable returns on their investments. The new report entitled ‘The Disclosure Dividend 2025: Assessing business resilience in a rapidly changing world’ analysed information from the 24,800 organisations that submitted their environmental issue response data via CDP during the 2024 disclosure cycle.
The headline finding from the research was that companies who take climate action can receive a ‘disclosure dividend’- the return derived from disclosing and acting on their environmental risks, impacts, and opportunities. CDP states that this dividend can be attained across three use cases: access to capital, business resilience and compliance. It found that those organisations which undertake climate action can generate up to $21 for every $1 invested, with the average return being $8. The study also claimed that a median $33.1 million worth of opportunities per company exists for firms that take environmental action, for just $4.6 million in costs to realize them. However, the report also warned that the financial cost of inaction is rising – projected to reach $38 trillion annually by 2050[i].
“The economics behind disclosure are becoming clear – data driven decisions help to manage business risk and unlock opportunity” said Sherry Madera, CEO of CDP[ii].
“Disclosure is the foundation of action. Our data shows that companies that measure and manage their environmental impacts not only future-proof their operations but also unlock tangible financial and strategic gains. The disclosure dividend is real – and the business case for seizing it has never been stronger.”[iii]
CDP identifies a ‘multiplier effect’ for those businesses acting swiftly upon data and insights garnered from their climate disclosures. They find that nine out of ten large companies disclosing to CDP already have processes in place (or intend to do so in the next two years) to identify and assess their environmental dependencies, impacts, risks and opportunities. Furthermore, just under half (43%) of large corporations reported having a climate transition plan in place.
Of those disclosing climate data, almost two-thirds of companies (64%) identified environmental opportunities – with 12% of the latter cohort unlocking a staggering $4.4 trillion in opportunity value in 2024 alone. CDP claims that an additional $13.2 trillion exists in opportunities yet to be realised.
On a regional level, companies in Japan and Canada are identifying the largest environmental-related financial opportunities. Based on median values, Japanese firms identified $73 million in potential gains per company, followed closely by Canada at $72 million. Those in the USA identified just $15 million worth of opportunities, while Chinese firms perceived $10 million worth of gains.
The research stresses that while the disclosed value of opportunities varies greatly, and can be altered by a range of factors, their analysis confirms that companies in nearly all sectors and regions stand to benefit from acting on environmental opportunities.
In summary the CDP notes that a growing shift is taking place: disclosure is no longer just a transparency exercise – it's becoming an economic imperative.
[i] The 2025 Disclosure Dividend - CDP
[iii] Ibid
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
