More than half of European companies have no carbon reduction targets in place despite 75 percent of those surveyed believing their business will be meaningfully affected by climate change, a report said Tuesday.

In its annual report, non-profit firm CDP analyzed environmental disclosures from 859 companies. It found that 53 percent still had no targets for their total emissions, and only a third of those that did had strategies which extended beyond 2025.

CDP also recognized 76 European companies as pioneers for global action, including L'Oreal, Unilever, Bayer, and ING. The CDP, previously known as the Carbon Disclosure Project, has energy information on more than 570 cities worldwide.

Meanwhile, investment funds from BNP Paribas, Candriam and Banque Postale were praised for their climate performance, as the analysis found that 46 percent of the funds' top company holdings had been put on CDP's "A-List" of best performers.

French businesses led European action on environmental sustainability according to the report, with 70 percent of the region's most climate-friendly investment funds and a third of its best-rated companies based in France.