–Carbon stored in nature is vulnerable to a changing climate. The ability of nature on land to sequester carbon shows vulnerability to changing climate conditions, particularly in the face of intensifying drought and fire activity. Historically, nature on land has absorbed around a quarter of anthropogenic emissions, and thus buffered the warming effects of fossil-fuel burning. If this function weakens, more and more carbon will end up in the atmosphere, driving further climate change. –Ocean heat uptake is at an all‑time high. Ocean heat uptake is higher than at any time in recorded history, driving sea level rise, ocean heat waves and coral bleaching. The Atlantic meridional overturning circulation (AMOC) – an ocean circulation pattern responsible for regulating climate and the ocean carbon cycle – is showing signs of slowing down, and the most recent science shows a collapse this century cannot be excluded, threatening catastrophic global consequences. Corporate Health Check Key Findings Only 10% of corporates demonstrate tangible action to address the climate and nature emergency and only 1% are performing at the highest assessed level - Level 4. The companies analysed under the CDP Corporate Health Check represent 67% of global market capitalization. These companies are assessed on 4 levels. Table 1 Corporates are assessed at four levels, with the following criteria : Laggards – 90% Frontrunners – 10% Level 1 Level 2 Level 3 Level 4 –No or limited emissions- related disclosure or targets –Poor governance –No integration of climate into business strategy –No impact reductions –Disclosure of Scope 1 and 2 emissions –Company-wide emissions target across any scope –Board oversight and risk assessment on climate –Some positive progress on climate targets –Disclosure of full value chain emissions (Scope 1, 2, 3) –Disclosures on at least 1 material nature topic –Any emissions reduction target covering Scope 1-3 (not SBTi-approved or a net zero target) –Stronger environmental governance mechanisms –Integration of climate and nature into strategy –On track to reach targets –Disclosure of full value chain emissions (Scope 1, 2, 3) –Disclosures on majority material nature topics –Net-zero or SBTi- approved climate targets –Robust environmental governance –Integration of climate and nature into strategy, including aligning investment with transition plan –On track to reach targets Of the companies making the most progress against their targets, there are four key levers: 1. Having a 1.5°C-aligned climate transition plan 2. Placing a price on carbon 3. Linking executive pay to environmental targets 4. Engagement across the value chainGlobally, only 35% of the companies are on track to meet their targets. Regionally, Europe leads with 46% of companies on track to meet their own targets. North America comes next with 33%, followed by Asia (32%), Latin America and Oceania (27%), and Africa (25%). Among companies that are on track with their emissions targets, they have cut their average emissions by 2% per year since 2016, bucking the wider trend of rising global emissions. 65% 68% 54%67%75% 74% 74%35% 32% 46%33%25% 26% 26% 0%20%40%60%80%100% Total Asia (including Middle East)Europe North America Africa Oceania Latin America Companies not on track with emissions targets Companies on track with emissions targetsFigure 2 Regions on track to reach their climate targets

State of Nature and Climate 2025