Companies acting on climate risk data are seeing significant returns, with risk mitigation delivering up to 21:1 ROI and an average of 7:1. In 2024, 12% of companies that disclosed opportunities to CDP unlocked $4.4 trillion in environmental value, leaving $13.2 trillion still untapped.

Drawing on nearly 25,000 corporate disclosures, CDP’s 2025 Disclosure Dividend report reveals that every $1 spent on mitigating physical climate risks can yield up to $21 — with median potential opportunities of $33.1 million per company, compared to $4.6 million in associated costs. This equates to a 7x return, underscoring the strategic and financial value of climate-related action.

Geographic differences are stark: companies in Japan and Canada lead with median gains of $73 million and $72 million per firm, respectively, while the US and China trail at $15 million and $10 million. Despite 90% of large reporting companies having or planning environmental risk assessment processes, only 43% have implemented a climate transition plan — signalling substantial room for growth.

With climate-related disasters projected to cost $38 trillion annually by 2050, the report makes one point clear: climate disclosure is no longer just a matter of transparency. It’s a core business strategy with measurable, long-term rewards for those who act decisively.

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