Carbon Disclosure Project 2011 – Global 500 Report


“One of the company’s strategic goals is to minimize its own contribution to global warming. This goal was implemented in 2003 when our CEO committed the company to going carbon neutral over a ten year period and set KPIs. The original target was to reduce our own carbon emissions by 15% per FTE and to compensate the remainder through the retirement of high quality emissions reduction certificates. The reduction target has been increased twice since 2003 to the current level of -45% per FTE basis. In 2010 the goal was exceeded as CO2 per FTE had been reduced by 50.6%. Although our carbon neutrality goal was achieved in 2007 the programme is still in force.” Swiss Re


Emissions reporting


The CDLI companies showed consistent leadership in emissions reporting by gaining an average score of 98 (2010: 97), thereby showing the value that these companies place on measuring and monitoring their emissions.


In 2011, particular emphasis has been placed on verification of emissions by companies. 100% (52) of the CDLI have their Scope 1 and Scope 2 emissions verified (complete or underway) in the reporting year (90% of these companies have been awarded the full marks available by attaching the appropriate third party opinion for the appropriate year and standard). The fact that these companies undertook the verification of their emissions is a strong contributing factor to their inclusion in the CDLI.


Governance & strategy


Governance continues to be a strong area for disclosure for both CDLI and non-CDLI companies in 2011 and forms a significant part of their corporate strategy. 100% of CDLI respondents


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stated that the Board or senior management has responsibility for climate change in the company (96% in 2010). 94% (371) of the overall Global 500 respondents stated that they had this level of governance (89% in 2010).


Opportunities


The CDLI significantly outperform the Global 500 population in terms of identifying and disclosing climate change opportunities. The average score for the CDLI in this area is 88 compared to 54 across all respondents. Companies that dedicate resources and time to the identification of opportunities may be better placed to capitalize on the opportunities that arise from a low carbon economy. The following examples highlight how companies are responding to and driving opportunities by considering stakeholder opinion, customer base and supply chain as part of their risk assessment process.


“In January 2011, we published a report with Barclays Capital focusing on opportunities for the financial sector to finance low carbon technologies. The most important components of our long-term strategy influenced by climate change are driving new business practices for a carbon-constrained economy. We aim to reduce Accenture’s carbon emissions and support our clients to reduce theirs.” Accenture


“Current and future regulatory requirements related to climate change are connected with business opportunities for BASF as they increase the demand for existing climate protection products, open up new markets and boost access to market shares. The market for these technologies is expected to grow at an above average rate due to regulatory influences.” BASF


“Employees are increasingly choosing to work for companies that reflect their values and hence, our response to climate change has potential to impact on our ability to attract and retain employees.”


National Australia Bank Risks


85% (338) of respondents reported risk from climate change in 2011 (2010: 78%, 301).


Undertaking work on risk identification and then disclosing risks could be an area of greater focus for the Global 500 in the future given the comparatively low average overall disclosure score of 62 for this area, although the CDLI companies are further ahead with a disclosure score of 91. The following examples highlight how some companies are identifying and responding to regulatory, physical and other risks brought about by climate change.


“Although the EU has committed itself to emissions reduction also beyond 2012 and to the continuation of the emissions trading system (ETS), the uncertainty related to the post-2012 global policy is the main regulatory risk for the future investments of the energy industry. This might result in wrong investment decisions (technology, fuels, location).” Fortum Oyj


“Consumers’ behaviors are affected by regional conditions from where they belong. Demands on micro plants for electricity generation with renewable energy sources will be increased in areas where centralized energy supply infrastructures are in short supply. However, in general, demands on high energy efficient and low carbon products will continuously grow in global setting due to increase of energy price and limitation on GHG / carbon emissions.” Samsung Electronics


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