In a significant new report, CDP has demonstrated that among S&P 500 Industry Leaders, those corporations who have made significant efforts to reduce their impact on climate change have much improved financial performance and return on equity (ROE) than those companies who are not taking such steps and do not disclose their carbon impact. CDP’s analysis shows that, on climate change management, S&P 500 industry leaders:
- Generate superior profitability: ROE 18% higher than low scoring peers and 67% higher than non-responders.
- Have more stability with 50% lower volatility of earnings over the past decade than low scoring peers.
- Grow dividends to shareholders: 21% stronger than low scoring peers.
- Exhibit value attributes attractive to equity investors.