2011 Carbon Disclosure Leadership Index (CDLI)
CDLI (at 19%) showing that, whilst there is some strong leadership in the sector, improvement is possible. The Consumer Discretionary sector may have moved into a stronger position in the CDLI (17%) because consumers are becoming increasingly carbon conscious in their spending habits. This requires companies in the sector to understand and disclose more as they seek to retain and win market share.
CDLI companies show consistent leadership across all areas of disclosure
The Global 500 respondents show a strong overall improvement in disclosure. In 2011, 33% (129) of total respondents score 80 or more compared to 24% (90) in 2010. As the overall quality of emissions disclosure has improved in 2011, the leaders (CDLI) have reported a much stronger understanding of the impact of climate change on their business, and as a result may derive a strategic advantage.
The graph in Figure 18 compares the responses of the CDLI with the average Global 500 across six key areas of
disclosure: emissions management, reporting, governance, opportunities, risks and stakeholder engagement. The average CDLI disclosure scores have increased in 2011, ranging from 87 to 98 across six areas (compared to a range of 85 to 95 in 2010).
Generally, all companies score well on emissions management, emissions reporting and governance (average scores in these areas all exceed 75 in 2011). Measurement and governance may be regarded as the early stages of a company’s approach to addressing the challenges presented by climate change. Subsequently, companies may identify that climate change could provide new markets for investments, business opportunities and potential partnerships.
Lockheed Martin is “developing products and services to aid our customers in meeting product efficiency regulations and standards. Lockheed Martin recognizes expanding and evolving markets across its global value chain that has resulted in the development of a number of new offering[s].”
Figure 18: Average disclosure score breakdown for the Global 500 overall versus CDLI14
100 90 80 70 60 50 40 30 20 10 0
Emissions management
Emissions reporting
■ Overall Global 500 ■ CDLI 25
Governance & strategy
Opportunities Risks
Stakeholder engagement
CDLI companies distinguish themselves by outperforming the overall population by a wider margin in the areas of risks, opportunities and stakeholder engagement. CDLI companies are demonstrating their ability to identify new commercial opportunities based on their deeper understanding of climate change issues and how these will impact their businesses by scoring, on average, 93 (overall Global 500 companies scored 54).
Emissions management
A notable area of difference between the CDLI and non-CDLI companies is the practice of setting emissions reduction targets and the emphasis that companies place on this. In 2011, 96% (50) of the CDLI stated that they have emissions reduction targets versus 70% (242) of non-CDLI respondents. As noted in the Key Themes section of this report, more companies are adopting emissions reduction targets as part of their climate change strategy.
14. The areas of disclosure reproduced in the chart above have been reduced from ten categories in 2010 to six in 2011.
Disclosure score
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