Climate Survey Report Analyzes Fortune 500 Climate Change Response
The Carbon Disclosure Project released its 5th annual global report (CDP5) regarding the impact of climate change on shareholder value, finding the private sector is taking the challenges seriously.
The
Carbon Disclosure Project released its 5th annual global report (CDP5) regarding the impact of climate change on shareholder value, finding the private sector is taking the challenges seriously.
Created for over 315 institutional investors with assets of more than $41 trillion, the report focuses on four primary areas: climate change risks, opportunities and strategies, greenhouse gas emissions (GHG) accounting, GHG emissions management, and climate change governance.
The report, which began in 2002, is based on a questionnaire sent to the world’s largest publicly-owned companies. This year’s response was the highest ever, with 77 percent of the Fortune 500 responding.
The CDP5 finds the gap between corporate awareness and action is narrowing. Of the responding companies, 76 percent say they have implemented GHG reduction programs, up from 48 percent in CDP4.
The total claimed GHG emissions were 6,977,346,712 tonnes of carbon dioxide equivalent. “This represents 14 percent of all global GHG emissions attributed to human activity and a 109 percent increase from CDP4,” the report says. The increase is attributable both to better reporting practices and a genuine increase in emissions. Scope 3 emissions account for more than half of the reported emissions total.
The CDP5 also includes a Climate Disclosure Leadership Index, a dean’s list of companies which are rated forthright and effective in disclosing and mastering their efforts to reduce GHG emissions. Included are the likes of Excelon, DuPont, BP, Exxon Mobil, Suez, Land Securities and Wal-Mart.
Regardless of such leadership, only 64 percent of carbon-intensive companies give climate change board-level or upper management attention, according to the report.
The report says the responses indicate the private sector has made good progress in the arena of climate change. However, it says the investor response is lacking, despite awareness.
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