The Carbon Disclosure Project launches its annual Global 500 and S&P 500 reports on the climate change and carbon emission performance of the world’s largest 500 companies at the start of Climate Week in New York.
Produced by PwC, the report reveals that these 500 companies contribute 11% of global emissions.
While 65% have implemented emissions reduction targets, only 19% show significant emissions reduction. Almost half of respondents have embedded climate change initiatives into their business strategy, with nine out of ten seeing commercial opportunities arising from it. More companies identify significant opportunities than risks from climate change.
Top performers include Siemens, Phillips, RBS, and Bayer. Tesco, BT, BSkyB, Shell are amongst other companies who submit their data in the survey. The report is funded by over 500 banks and institutional investors, and all the information submitted is freely available on the internet to the public, and investors, to review including individual emissions levels for companies, and sector analysis showing key risks, and performance against overall trends.
Alan McGill, a specialist in business carbon and climate change reporting and measurement at PwC, who led the firm’s analysis on the Carbon Disclosure Project’s (CDP) annual report, commenting on this year’s annual CDP Global 500 survey said:
“Reporting effectively on carbon and climate change, to one standard, allows a company’s performance and the direct financial implications of the issues to be assessed. This year, we’re seeing more information, on scope three emissions for example, and more information made publicly available.”
“The issues for investors have shifted. Originally they wanted to know the information was being disclosed by companies. Now, they are asking more questions about the robustness and credibility of the data. Disclosure alone is not enough. They are asking if the management team are using the information to drive the business strategy, and performance improvement. That’s why the new Performance Index this year, and the trends that emerge from it over the coming years will become more and more important.”
“We’ve seen more companies work to integrate their CDP report with other requirements, which is why European firms, particularly those involved in the EU ETS or UK’s CRC scheme for example, are one step ahead. Over 60% are having their emissions data independently verified, with a move towards using registered auditors to give their submissions credibility with both investors, and the public.
“Credible assurance standards will have to emerge because climate change and carbon emissions now have direct financial impacts, this is not about CSR or greenwash, but robust systems and processes to gather the data, report on it, analyse it and use it to drive value into a business.”
“Already the Australian government has concluded that because of the financial implications, assurance of the reporting on these issues by a registered auditor is appropriate. DEFRA will be deciding on whether carbon should become a mandatory reporting requirement for companies later this year, and the SEC have issued guidance as well. Companies that are signed up to CDP are in the first wave of a much wider movement towards integrated reporting.”
Access the report here.
For further comment, or interview with Alan McGill please contact Rowena Mearley, Media Relations, PwC Sustainability and Climate Change.
For more information contact:
Corporate PR Senior Manager, PwC
Tel:020 7213 4727
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