Financial Institutions Push Over 1,300 Firms to Disclose Environmental Risks in 2025

More than 220 global financial institutions have collectively urged over 1,300 firms to disclose environmental data as part of the 2025 Non-Disclosure Campaign (NDC) led by CDP - with more than $23 trillion in assets, these organizations are pressuring firms to begin reporting their climate, water, and forest impacts, and not just ignore their impacts because they've avoided disclosure for a few years. The campaign is part of a larger effort to get firms to integrate environmental data into their financial decisions, and lead to more sustainable behavior by firms. 

In data released by CDP - which runs the world’s largest environmental disclosure system, the companies in this campaign are 2.5 times more likely to respond to data requests when the request is from financial stakeholders. This demonstrates the growing power banks, asset managers, and pension funds can have in forcing the firms they finance to be environmentally transparent.

The campaign is working on three areas this year: climate change, water security, and forests. Out of the companies contacted, 919 have been asked to report climate-related risks and impacts. 711 companies have been approached to verify their water usage and environmental impacts, which is a 54% increase over last year. 307 companies are being asked about their impacts on forests. 

The companies span many high-impact sectors such as, manufacturing, energy, agriculture, and transportation. North America tops the list of targeted companies with 429, followed by Asia Pacific (396), and Europe (339). Outreach on other areas of the world is also underway, including Latin America, the Middle East, and Africa (more limited engagement).

The importance of this initiative is related to the financial implications of environmental risk. Organizations are increasingly aware that carbon emissions, water scarcity, and deforestation can impact business sustainability on both business operation and investment returns. When environmental information is disclosed transparently and consistently, investors can identify risks and opportunities, assess long-term resilience for companies' operational activities, and respond to the changing regulatory landscape.

Since the beginning of CDP's 2025 reporting window in June, more than 70,000 companies globally have received requests from customers, investors, and supply chain partners to disclose their environmental impact. This significant request for environmental disclosure reflects the growing concern over how businesses are preparing for risks for the future of climate change, depletion and shortages of natural resource, and changing policy landscapes.

Affiliated financial institutions of the campaign claim that understanding a company's environmental footprint is no longer optional but essential for responsible investing. Many jurisdictions around the world have moved to frameworks of mandated disclosure, higher expectations for firms to prepare and standardize their environmental reporting, including the European Union’s Corporate Sustainability Reporting Directive (CSRD) and soon the International Sustainability Standards Board (ISSB).

CDP's non-disclosure campaign is about not only compliance but supports companies to improve how they collect and communicate this valuable data. Many companies, especially those from emerging markets, or smaller companies, do not have the systems and/or knowledge to ensure effective reporting. Engagement and action from the financial institutions can help act as motivators and guides for companies on their disclosure journey, whether reporting is first time or part of an annual process.

There is additionally increasing business case for environmental transparency. Companies that report over a number of years are better positioned to access green financing options, build brand reputation, and get configured for resilience in times of market volatility. Companies find the inefficiencies, are able to reduce operational risk, and know more clearly what it means and how to align with global sustainability ambitions, including the Paris Agreement and the UN Sustainable Development Goals.

CDP recognizes that it is increasingly important for investors, lenders, and insurers to embrace their role in accelerating this shift. Actionable data is the first step, and institutional investors, lenders and insurers can redefine market standards and propel industries into the sustainable transformation space entirely. The campaign also provides a guide for financial institutions to use disclosure in engaging with their clients and supporting their clients in making sure their portfolio is suitable to meet international climate targets.

While the campaign does not have penalties, the reputational and financial risks of non-disclosure are growing. Ignoring a request for disclosure may signal to those looking for reliable investments that they are risky and not prepared for what is coming from regulators or the market. If companies see non-disclosure as an opportunity, it can lead to partnerships and opportunities as innovators and lead the low carbon transition.

The 2025 Non-Disclosure Campaign indicates a growing awareness that the use of environmental data is no longer a fringe concern, but rather part of the fabric of financial strategy and corporate governance. Demand for data that is credible, comparable and actionable, will only go up, as climate change impacts economies and societies on a global scale. CDP's NDC is an important tool for financial institutions that are not only managing their own risk, but helping to build a more sustainable global economy.

The campaign will continue over the course of the year, with results expected to provide valuable insight on the way industries are reacting to these calls for transparency. CDP backed by valuable actors in the financial space is moving environmental disclosure closer to being part of the standard business practice according to a leading media house.