2023 CDP Climate Change Scores Analysis


Best Upgrades


Company 2022 2023
Amazon.com Inc. No Score B
EssilorLuxottica No Score B
Haleon No Score B

The following companies reported to CDP for the first time in 2023:
Howdens Joinery

Worst Downgrades


Company 2022 2023
Sartorius B C
Deutsche Börse B C
Centrica A B
FedEx B C
Medtronic B C

The following companies stopped reporting to CDP in 2023:
Porsche SE

DETAILED SCORES EVOLUTION HERE



2023 CDP CLIMATE CHANGE SCORES BY STOCK INDEX


11 Upgrades / 8 Downgrades / 20 same score

Best Upgrades


Company 2022 2023
EssilorLuxottica No Score B
BNP Paribas B A
Teleperformance C B

Worst Downgrades


Company 2022 2023
Sanofi A A-
Engie A- B
Vivendi A- B
Schneider Electric A A-
Vinci A A-
Carrefour A A-
Veolia A A-
Saint-Gobain A A-

DETAILED SCORES EVOLUTION HERE




23 Upgrades / 17 Downgrades / 50 same score

Best Upgrades


Company 2022 2023
Haleon No Score B
Howdens Joinery F C
Admiral Group D B

The following companies reported to CDP for the first time in 2023:
Howdens Joinery

Worst Downgrades


Company 2022 2023
Centrica A B
Kingfisher plc A A-
British American Tobacco A A-
Prudential plc A- B
Beazley Group B B-
Land Securities A A-
Informa A- B
JD Sports A- B
Barclays A- B
Unilever A A-
International Airlines Group A A-
Endeavour Mining B- C
Tesco A- B
Fresnillo plc B B-
Segro A- B
AstraZeneca A A-
WPP plc A- B

DETAILED SCORES EVOLUTION HERE




11 Upgrades / 9 Downgrades / 20 same score

Best Upgrades


Company 2022 2023
Rheinmetall D B
Munich Re C B
Siemens Energy B A
Heidelberg Materials B A
Commerzbank C B

Worst Downgrades


Company 2022 2023
Deutsche Börse B C
Sartorius B C
Zalando A- B
Mercedes-Benz Group A A-
Bayer A A-
Infineon Technologies A- B
SAP A- B

The following companies stopped reporting to CDP in 2023:
Porsche SE

DETAILED SCORES EVOLUTION HERE




5 Upgrades / 5 Downgrades / 20 same score

Best Upgrades


Company 2022 2023
Amazon.com Inc. No Score B
Boeing C B
Nike Inc. B A-
Salesforce A- A
Home Depot B A-

Worst Downgrades


Company 2022 2023
Johnson & Johnson A A-
3M B B-
Visa Inc. A A-
American Express A- B

DETAILED SCORES EVOLUTION HERE




17 Upgrades / 15 Downgrades / 67 same score

Best Upgrades


Company 2022 2023
Amazon.com Inc. No Score B
Intuit C B
Lockheed Martin Corp. C B
American International Group (AIG) D C
ConocoPhillips D C
General Electric D C
Boeing C B
Costco D C

Worst Downgrades


Company 2022 2023
FedEx B C
Medtronic B C
Adobe Inc. A A-
3M B B-
Colgate-Palmolive A A-
Linde plc A A-
Visa Inc. A A-
Charles Schwab Corp C C-
American Express A- B
Accenture A A-
Johnson & Johnson A A-

DETAILED SCORES EVOLUTION HERE



Carbon Intensity Ranking

Carbon intensity is measured as the amount of Scope 1-2 GHG Emissions (expressed in metric tons of CO2 equivalent) per Million of Revenue (in USD)

Most carbon-intensive companies (all sectors)


Company Year CO2e (S1+S2) Revenue (USD) Intensity
picture_2 Southern Company 2021 82.6 million 23.2 billion 3,557
picture_2 Duke Energy 2021 78.1 million 24.6 billion 3,172
picture_2 Nextera Energy Inc. 2021 43.0 million 21.3 billion 2,023
picture_2 ArcelorMittal 2021 138.6 million 76.6 billion 1,808
picture_2 Linde plc 2021 39.9 million 30.8 billion 1,295
picture_2 Air liquide 2022 39.3 million 31.5 billion 1,246
picture_2 Veolia 2021 30.5 million 33.7 billion 904
picture_2 Dow Inc. 2021 32.2 million 55.0 billion 586
picture_2 Union Pacific Corp 2021 9.5 million 21.8 billion 434
picture_2 Exxon Mobil 2021 117.0 million 280.5 billion 417

Most carbon-intensive companies by sector


Company Sector Year CO2e (S1+S2) Revenue (USD) Intensity
picture_2 Southern Company Utilities 2021 82.6 million 23.2 billion 3,557
picture_2 ArcelorMittal Materials 2021 138.6 million 76.6 billion 1,808
picture_2 Union Pacific Corp Industrials 2021 9.5 million 21.8 billion 434
picture_2 Exxon Mobil Energy 2021 117.0 million 280.5 billion 417
picture_2 American Tower Real Estate 2021 1.1 million 9.4 billion 119
picture_2 Texas Instruments Information Technology 2021 2.1 million 18.3 billion 113
picture_2 Michelin Consumer Discretionary 2022 2.3 million 30.1 billion 76
picture_2 PepsiCo Inc. Consumer Staples 2021 4.3 million 79.5 billion 53
picture_2 AT&T Inc. Communication Services 2021 5.5 million 134.0 billion 41
picture_2 EssilorLuxottica Health Care 2021 772,593 23.5 billion 32
picture_2 US Bancorp Financials 2021 138,873 21.8 billion 6


Is ESG Rating consistent with Climate Performance?

Analysis based on the Top 100 largest US companies (S&P 100)

ESG Ratings

In the analysis below, we'll use MSCI ESG ratings

  • LAGGARD (CCC/B): A company lagging its industry based on its high exposure and failure to manage significant ESG risks
  • AVERAGE (BB/BBB/A) A company with a mixed or unexceptional track record of managing the most significant ESG risks and opportunities relative to industry peers
  • LEADER (AA/AAA) A company leading its industry in managing the most significant ESG risks and opportunities

Climate Alignment Ratings

We'll use the Implied Temperature Rise (ITR) from MSCI to measure the temperarure alignment of companies with global temperature goals. It is a forward-looking metric, expressed in degrees Celsius.

By computing the ESG rating and ITR score for each company, we can classify companies into 4 groups:
  • True Leaders: Companies are combining strong ESG rating and climate-aligned goals.
  • Climate/ESG Leader: Companies are leaders either in ESG or climate.
  • Average: Companies have average ESG and climate scores.
  • Laggards: Companies are laggards in either ESG or climate scores.

These charts were inspired by a conversation with Christine Uri on LinkedIn(LinkedIn) about the possibility of achieving ESG without sustainability and vice-versa. She was absolutely right.
Many thanks to MSCI ESG Ratings & Climate Search Tool for providing free access to this data. Here's the Oct-22 MSCI Net Zero Tracker report with additional insights.



Net0Tracker Scores are Getting Better



Still A long Way to Go to Reach Net Zero by 2050

Current Methodology:

  • For each S&P 100 company, a GHG emission trajectory from 2019 to 2050 is calculated
  • Historical GHG emissions (usually 2019-2021) are either based on self-reported data or an estimate when GHG reporting is either incomplete or absent.
  • Future GHG emissions are calculated based on reduction targets that are publicly committed
  • Two types of targets are considered: gross absolute emissions reduction and net zero targets.
  • Net Zero targets are converted in gross emission reduction assuming a 90% decrease vs. 2020 (See Net Zero Standard by SBTi)
  • Targets including incomplete scope 3 categories are excluded.



Still Low Transparency in Carbon Reporting

Note: Based on S&P 100 companies



Net Zero is Becoming Mainstream

Top 10 Revenue without Net Zero Target


Company Revenue (USD) Ranking
picture_2 Berkshire Hathaway Inc. 276.1 billion #100
picture_2 Home Depot 151.2 billion #63
picture_2 AbbVie Inc. 56.2 billion #74
picture_2 Caterpillar Inc. 51.0 billion #93
picture_2 Deere & Company 43.9 billion #95
picture_2 Abbott Laboratories 43.1 billion #73
picture_2 Nvidia 26.9 billion #84
picture_2 Altria Group Inc 21.1 billion #18
picture_2 Advanced Micro Devices 16.4 billion #29
picture_2 American Tower 9.4 billion #77

Note: Based on S&P 100 companies



Science-Based Targets: The Gold Standard

59.8%

SBTi

% companies that committed or set science-based targets as validated by SBTi.

Note: Based on global companies tracked by Net0Tracker and SBTi latest report



© Vincent Manier - September 2021 About us . Keep in touch . Blog