Companies that act on climate risk data can achieve up to 21:1 returns on investment in risk mitigation, with an average ROI of 7:1
In 2024, 12% of disclosing companies unlocked $4.4 trillion in environmental opportunity value, with $13.2 trillion still untapped
Firms in Japan and Canada lead in value per opportunity, with median gains of $73 million and $72 million per company, respectively
Companies that proactively act on environmental risks and opportunities are now seeing substantial financial rewards, according to a new report from CDP. Drawing on data from nearly 25,000 corporate disclosures in 2024, The 2025 Disclosure Dividend finds that every dollar spent on mitigating physical climate risks can generate a return of up to $21 — and on average, $7 for every $1 invested.
“The economics behind disclosure are becoming clear – data driven decisions help to manage business risk and unlock opportunity,” said Sherry Madera, CEO of CDP.
CDP’s analysis shows companies reported a median $33.1 million in potential opportunities per firm from environmental action, compared to $4.6 million in costs to realize them. That’s a 7x return on average — a compelling case for the strategic and financial value of climate-related disclosure.
The benefits of acting on disclosed data are already being realized. In 2024 alone, 12% of companies that reported opportunities unlocked $4.4 trillion in environmental value. The remaining $13.2 trillion in potential upside underscores the scale of unclaimed gains.
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“Disclosure is the foundation of action,” added Madera. “Our data shows that companies that measure and manage their environmental impacts not only future-proof their operations but also unlock tangible financial and strategic gains. The disclosure dividend is real – and the business case for seizing it has never been stronger.”
The report also reveals how geography plays a role in the scale of opportunity. Companies in Japan reported a median $73 million in potential gains per company, with Canada close behind at $72 million. In comparison, the US and China lag with $15 million and $10 million, respectively.
The findings emphasize that while 90% of large companies disclosing to CDP have or plan to adopt environmental risk assessment processes, only 43% currently have a climate transition plan in place — suggesting significant room for growth and action.
As climate-related disasters intensify and the cost of inaction climbs — projected to reach $38 trillion annually by 2050 — CDP’s report makes it clear: disclosure is no longer just about transparency. It’s becoming a business imperative, with measurable upside for those who act swiftly.
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