Japanese companies are emerging as global leaders in corporate climate action. According to data from CDP, a non-profit climate disclosure system, 22% of Japanese firms achieved “climate leadership” status in the latest rankings. This is the highest share among world regions, ahead of the UK (17%), the European Union (16%), and China and Southeast Asia (8%).
This annual ranking evaluates more than 10,000 companies. It measures their environmental awareness, management practices, transparency, and performance in climate, water, and forest metrics. The assessment also looks at whether companies’ emissions and net-zero targets are validated by the Science-Based Targets Initiative (SBTi). Companies with SBTi-approved targets performed better overall, CDP reported.
CDP Chief Executive Sherry Madera said the findings show that corporate climate action remains strong. She noted that firms continue to prioritize sustainability despite economic and geopolitical uncertainty. These challenges include recent regulatory rollbacks on climate policy in the U.S. and Europe.
The CDP rankings also reveal that top-performing firms go beyond emissions goals. They link executive compensation to environmental performance. In fact, most companies that excelled in climate, water, and forest categories reported tying pay to environmental targets. This suggests a deeper corporate commitment to sustainability outcomes.
Importantly, CDP is unique as an independent disclosure platform. It offers one of the world’s most credible frameworks for environmental reporting. The data helps investors, policymakers, and the public compare corporate climate efforts. CDP’s system covers water use, risk management, deforestation exposure and climate strategy, making it a broad measure of environmental performance.
Moreover, the second year of these global rankings shows climate leadership remains a priority even amid market and policy uncertainty. This suggests corporate climate action is becoming more embedded in business strategy rather than a short-term trend. CDP’s findings point to growing accountability and resilience in corporate climate leadership.
Reference- Reuters reporting on CDP climate leadership rankings, scientific American, National Geographic
