CDP, in collaboration with ACT Group, has analysed the 2023 public disclosure results of Asia-Pacific companies reporting through CDP on climate change, forests, and water security. The findings reveal a substantial increase in environmental reporting across the region, underscoring both progress and areas where further ambition is needed to achieve net zero and nature-positive outcomes.
In 2023, the Asia-Pacific region accounted for over 30% of CDP’s global disclosures, with nearly 8,000 companies submitting reports—a 30% increase from the previous cycle. South Korea, Vietnam, and Cambodia registered the highest relative increases in submissions, while China, Japan, and South Korea saw the most significant absolute gains. Nearly 40% of companies on CDP’s A List, which recognizes leadership in tackling environmental issues, are from the Asia-Pacific region, with Japan emerging as a leader in climate change, forests, and water security disclosures.
Despite these positive trends, the report highlights that progress in adopting ambitious climate targets has stagnated. Although there has been an increase in transition plans, less than a third of these companies have incorporated financial planning to support these strategies. Staying within the 1.5°C limit, a critical global target, remains a challenge, as the number of companies setting aligned targets has not significantly increased in proportion.
The report also stresses the importance of addressing climate change and nature loss together in the Asia-Pacific, given the region’s rich biodiversity, economic dependence on natural resources, and vulnerability to climate impacts. However, less than 30% of Asia-Pacific companies that disclosed through CDP in 2023 provided information on nature-related issues, revealing a gap in broader environmental focus beyond climate change.
On a positive note, disclosures on nature-related topics, particularly water security (26% growth), are steadily increasing and keeping pace with climate-related disclosures. However, the overall progress in reducing greenhouse gas emissions remains slow, underscoring the need for companies to accelerate their efforts.