The report says companies that demonstrate a strong commitment to managing their impact on the environment are generating improved financial and environmental results.  Analysis of the corporations leading on climate progress, as based on CDP’s methodology and including BMW, Nestlé and Cisco Systems, suggests that they generate superior stock performance (see Figure 9 and Figure 10, below). Further, the businesses that offer employees monetary incentives related to energy consumption and carbon emissions are 18 percent more successful at accomplishing reductions.

Two leadership indices for the Global 500 are released in the report. The Climate Performance Leadership Index (CPLI) marks companies that are implementing a robust climate strategy and approach to reducing emissions. The Climate Disclosure Leadership Index (CDLI) identifies the most climate transparent companies. The index comprises those that score within the top 10 percent for the quality of the data they disclose. The minimum score to achieve a position on the CDLI has consistently risen and now stands at 97 percent. Both indices are used by investors to inform investment decisions relating to climate risks and opportunities.

Germany, Switzerland and the UK are over represented on the CPLI relative to the geographic composition of the Global 500. Although European companies are more likely to outperform in comparison to their peers in the USA, the number of North American companies achieving a position on the CPLI has more than doubled since 2012. India, Norway, South Africa, South Korea and Sweden are new to the index.

In last year’s Global 500 Report, Bayer, for the second year in a row, ranked no. 1 on the 2012 combined disclosure and performance list, sharing the top billing with Nestlé, a newcomer to the list.