Businesses including Microsoft, Danone and L’Oréal are leading the way on tackling climate change issues.

That’s the verdict from new rankings published by global non-profit disclosure platform CDP, which has assessed companies based on their transparency, target-setting and risk awareness.

More than 120 companies made the A-grade for their action on climate change, including China Mobile, Infosys Limited and Klabin.

Meanwhile, businesses such as ACCIONA, Gap and Ford were among more than 25 companies on the A-list for their water security action.

A total of seven companies were given an A for their efforts to tackle deforestation, including Beiersdorf, Tetra Pak and UPM-Kymmene.

Other than L’Oréal, fragrance and flavor company Firmenich was the only company to get A’s across the board for sustainable actions in all areas – its state-of-the-art wastewater treatment plant in China has boosted its capacity, supporting clean growth of 8%.

Dexter Galvin, Global Director of Corporates and Supply Chains at CDP, said: “The next decade is crucial in our shift to a sustainable economy and we believe corporates are at the heart of this transition.

“By ranking companies, we aim not just to highlight leaders’ best practice but to inspire all businesses to aim higher and take more action.”