Allianz, Consolidated Edison, EMC, Reckitt Benckiser, Siemens along with BASF, Boeing and Cisco Systems were among the global corporations leading efforts to tackle climate change, according to this year’s Carbon Disclosure Project (CDP) Global 500* Report. The results were launched today in New York at an event hosted by Bank of America Merrill Lynch, one of CDP’s global sponsors.
This year’s Global 500 Report, produced by PricewaterhouseCoopers, received the highest response rate ever from corporations (409 responses, representing 82% of the Global 500, up from 77% last year), the highest level of disclosed corporate greenhouse gas emissions (83% of respondents reported Scope 1 and / or 2 emissions **, up from 72% last year) and a doubling of response rates in the BRIC countries (Brazil, Russia, India, China). It also contains the greatest level of detail to date.
Carbon Disclosure Project also launched its new performance scoring pilot methodology at this year’s Global launch, one of the first events of New York Climate Week. The performance scores measure corporations’ actual performance in responding to and reducing their contribution to climate change and is intended to complement the Carbon Disclosure Leadership Index (CDLI).
The CDLI rates firms according to the level and quality of their disclosure and reporting on greenhouse gas emissions and climate change strategy data. The companies topping the table on carbon disclosure (CDLI ratings) in 2009 are: Bayer, BASF, HSBC Holdings, Walmart and Chevron. In 2010, CDP plans to formally incorporate the performance pilot into its analysis and perform a deeper level analysis of the performance actions disclosed by their participants.
“Incorporating performance into CDP 2009 has been a positive step: it has provided distinction between observing and rewarding good reporting versus positive action,” says Paul Dickinson – CEO of Carbon Disclosure Project. “It will help show where risks are being managed and opportunities maximized, and provide investors with insight into how well companies are preparing to compete in a low carbon environment.”
As the United Nations Climate Change Conference in Copenhagen approaches, the report revealed that companies covered by the EU Emissions Trading Scheme (EU ETS) tend to achieve higher scores on both disclosure and performance (20% and 25% higher respectively) which may reflect the organizational rigour imposed by mandatory legislation.
The best performing companies all shared the following behaviours:- They are taking effective action to manage risks and capitalize on new opportunities
- Show carbon reduction activities that deliver results
- Incorporate expected regulation into forward thinking and planning
- 51% of the Global 500 companies report emission reduction targets, up from 41% in 2008
- Only 36% of reported carbon reduction targets stretch beyond 2012: A global agreement in Copenhagen in December is needed to provide increased certainty for Global 500 companies looking to set medium and long-term emission reduction targets, according to respondents
- Five countries (France, Germany, Japan, US and UK) out of 30, accounted for both 70% of respondents and 70% of total emissions disclosed (Scope 1 and 2**)
- The response rate from Brazil, Russia, India and China (BRIC countries) has doubled since 2008 to 44%, including a 100% response rate from Brazil
- The number of Asian companies responding to CDP 2009 increased by 39% (51 to 71) from CDP 2008
- The Global 500 are highly influential in global emissions reduction with total reported Scope 1** emissions alone equating to 11.5% of global emissions. Disclosed Scope 1 emissions are 3.6 billion tonnes of CO2-e
- The Information Technology sector achieved the highest average performance score overall
