As the world grapples with the escalating impacts of climate change, the call for corporate action to cut emissions and reverse nature loss has never been more urgent. Businesses are uniquely positioned to drive significant change, yet most still lag in their commitments to sustainability.
The 2025 CDP Corporate Health Check is a collaborative global report by the Carbon Disclosure Project (CDP), the World Economic Forum, and Oliver Wyman that assesses the efficacy of corporate actions aimed at reducing emissions and reversing nature loss. It highlights the crucial link between the global economy and nature and acknowledges the vital role industry will play in curbing the environmental threats to the planet.
The Corporate Health Check focuses on the actions of more than 6,800 businesses accounting for 67% of global market capitalization that represent the most proactive of the 25,000 companies that disclose to the CDP. It evaluates their progress in five areas pivotal to cutting emissions and addressing nature loss: disclosure, target setting, governance, strategy, and progress.
CDP’s Corporate Health Check on emissions and nature targets
The CDP’s Corporate Health Check creates four categories that indicate the progress companies have made.
Level 1 — Falling behind
Exhibiting no or limited emissions related disclosure or targets, poor governance, no integration of climate or nature into business strategy, and no impact reductions.
Level 2 — Meeting the minimum
Exhibiting disclosure on Scope 1 and 2 emissions, emissions target(s) across any scope, board oversight and risk assessment on climate, and at least some positive progress on climate targets.
Level 3 — Showing ambition
Exhibiting disclosure on full value chain emissions (Scope 1, 2, and 3) and on at least one material nature topic, with emissions targets covering the value chain and targets in at least one nature area. Stronger environmental governance mechanisms, integration of climate and nature into strategy, and showing on track progress to reach emissions target while making positive progress on at least one nature target.
Level 4 — Charting change
Exhibiting disclosure on full value chain emissions (Scope 1, 2, and 3) and on the majority of material nature topics, with net-zero or SBTi-approved climate targets and majority of nature topics covered by targets. Robust environmental governance and integration of climate and nature into strategy, including aligning investment (CapEx) with transition plan. On track to reach climate target and positive progress on majority nature targets.
Accounting for gaps in corporate climate action
The 2025 Health Check results indicate that just 10% of companies are embedding Earth-positive decision-making across their business and reaching the top two levels. Levels 3 and 4 of the Health Check represent companies taking tangible actions across all areas, including transparently reporting full emissions and nature impacts, setting relevant environmental targets, adopting robust governance, and establishing effective climate and nature strategies. This small group of companies account for nearly 20% of the total market capitalization assessed.
Most companies, on the other hand, are failing to address the planet's needs or just meeting the minimum as defined by regulation or voluntary frameworks. This demonstrates a shortage of ambition that is undermining the global economy’s ability to achieve climate and nature targets, including net zero in 2050. For instance, significant gaps remain, particularly in reporting Scope 3 emissions from corporate supply chains and from the purchase and use of products and services.
Although nearly 89% conduct climate risk assessments, only 45% have developed transition plans to reduce emissions systematically. Only one in three businesses are on track to meet their own emission targets, with European companies ahead of those in other regions.
Reducing emissions while boosting financial performance
Through a study of actions the Health Check leaders have employed, the research has identified four key strategies that can drive corporate progress: creating transition plans, setting internal carbon prices, incentivizing management, and engaging with the supply chain. The research also helped to dispel the notion that reducing emissions comes at the expense of financial performance. The Health Check shows corporate climate leaders in several sectors performing on par with those unlikely to hit targets.
Take urgent call to action to drive global emission reduction
There’s a limited amount of time left to reduce emissions. While the global economy was supposed to have reduced its emissions by almost half by 2030, emissions and temperatures continue to set new records each year. Nature is more endangered than ever, with only a small minority prioritizing critical areas like water, forests, and biodiversity.
The success of the Health Check’s corporate frontrunners in reducing emissions serves as a model for others to emulate. Policymakers are urged to create conditions that support sustainable business practices. This analysis highlights the complex interplay between corporate actions, regulatory frameworks, and economic incentives in addressing climate change and advancing planetary health. Moving forward, the commitment to sustainability must become a priority for corporations worldwide, even if regulations don’t exist to compel them.