Decarbonisation initiatives saved companies US$54bn in 2024 - CDP

Companies disclosing climate data though CDP reported over US$54 billion in annual savings from low-carbon initiatives in 2024 – proving the business value of climate action.

With finance as a top concern at COP30, the data shared by CDP this week shows that the data needed to close the climate finance gap already exists, and is being used by financial institutions managing US$145 trillion.

However, only 11% of the 12,000 companies that disclose climate transition plan data align CAPEX with their transition strategies, highlighting the need for firms and investors to better connect climate ambition with finance.

Urgent need to close transition finance gap

CDP disclosures show that having a climate transition plan helps companies find the business case for climate action: those with a plan are nearly twice as likely as their peers to identify short-term opportunities for growth and cost savings (51% vs. 28%).

Financial institutions themselves are increasingly publishing transition plans: around half of the 544 financial institutions (representing US$145 trillion in assets) that disclosed through CDP in 2024 have done so, and more than half of these use corporate transition plan data to inform their investment processes.

But investment in the transition is still lagging, having reached US$2 trillion in 2024 – only one-third of the US$6.7 trillion needed annually by 2030 to stay on track with net zero goals.

“The plumbing of transition finance now exists – the data are here, the plans are in place; but too little capital is flowing through the system,” said Amir Sokolowski, Director of Climate at CDP. “Financial institutions no longer need to wait for perfect data. The focus must now shift to aligning investment with credible transition plans.”

Data for policymakers

As world leaders negotiate on climate policy in Belem, the data also aims to support policymakers by providing insight on the most significant dependencies identified by the corporate world.

For instance, 94% of disclosers with transition plans identify on average at least five categories of dependencies, including technology (83%), infrastructure (67%), and supportive policy and regulation (67%).

 “Policymakers can use this data to see where companies are ready, where bottlenecks exist, and how public policy can unlock private finance,” added Sokolowski. 

Sherry Madeta, CDP CEO, also commented: “The transition to an earth-positive economy will not happen without finance; and finance will not flow without trust. We can see ambition is high across the market, now we need to leverage the power of data to drive the financial flows that underpin action. COP30 must mark the moment we move from ambition to implementation by putting credible, high-quality data at the centre of transition finance.”