NGO awards triple-A climate rating to just 14 firms

PARIS – Only 14 companies are making top-grade efforts on the climate, the organisation that scores environmental efforts by companies for investors said Tuesday.

The NGO Carbon Disclosure Project (CDP) said only 14 out of nearly 12,000 firms that it scores received A marks in all the three areas of climate change, forests and water security in 2021.

Among those were consumer goods firm Unilever, food group Danone, cosmetics maker L’Oreal and tobacco giant Philip Morris International.

A total of 272 companies out of nearly 12,000 firms with $12 trillion in market capitalisation — or just 2 percent — received at least one A rating.

The CDP ranks firms after sending them a questionaire, and the results are used by asset managers seeking to make their portolios more green.

A majority of the ranked firms received scores between C and D-, which means they are only beginning to recognise their enviromental impact.

“It is also concerning that 16,870 companies worth US$21 trillion in market cap — including Chevron, Exxon Mobil, Glencore and Berkshire Hathaway — failed to respond to the request for information from their investors and clients, or provide sufficient information in their response,” said CDP.

Dexter Galvin, global director of corporations and supply chains at CDP, said that “these companies are not only putting the planet at risk, but themselves”.

“If they continue with business as usual, they will end up on the wrong side of public opinion, regulation and investor sentiment.”