The 2011 Carbon Performance Leadership Index (CPLI)
In 2011, CDP has raised the bar by enhancing the scoring methodology for both disclosure and performance questions to make the scoring results more relevant to investors and other stakeholders.
The average performance score for 2011 is 4 points lower than in 2010. This is primarily the result of a change in focus of the performance scoring rather than a change in corporate performance. In 2010, the focus was to measure the extent to which a company had a framework in place to address carbon management. This year, performance focuses more on measuring the ambition and success of a company’s short and long term actions to mitigate climate change.
Overall, 338 Global 500 companies (85%) received a performance band compared to 310 companies in 2010 (76%). However, as a consequence of more stringent CPLI entrance criteria on emissions reductions and verification, the number of companies included in the CPLI dropped from 48 to 29. A lower percentage (36%) of companies achieved a high performance band (A, A- or B) in 2011 than 2010 (52%). This is, again, largely due to the qualifying criteria being more stringent.
79% (23) of the CPLI companies were also in the CDLI – this is an improvement on 2010 (69%, 33) and indicates that senior executives in an increasing number of companies are not only aiming to be transparent about their emissions but are also actively striving to reduce their emissions. Many companies with a high disclosure score, combined with a high performance band, note the strategic benefits that taking a leadership position in carbon adaptation and mitigation offers.
It is important to note that performance improvements take longer to implement and often lag behind improvements in disclosure. As companies measure, they can manage and then begin to perform and optimize results. True performance enhancements take longer to achieve and the expectation is that companies’ performance will continue to improve over the coming years.
For the second consecutive year, the Financials sector has the most companies in the CPLI (9 companies – 31% of the total CPLI). This is partly because Financials is highly represented in the Global 500, but it also clearly shows that some financial services companies have prioritized action on climate change. The only sector with no companies in the CPLI is Telecommunications. This is surprising given that the Telecommunications sector is increasingly seen as providing technology that can support emissions reduction activities.
Utilities is the best performing sector with an average performance band ‘B’. This may be a reflection of the impact of regulations on the Utilities sector and shows that these companies are taking a range of actions on climate change.
The sector with the lowest average performance band was Information Technology (band C). This reflects their lower than average number of emissions reductions activities as well as less frequent verification. As with the Telecommunications sector, this result is surprising given the expectation that Information Technology has the potential to support a wide range of emissions reduction activities.
Figure 24: Comparison of performance bands between 2010 and 2011
350 300 250 200 150 100 50 0
153 48
26 29
87 107
99 10
2010
29 60
2011 A A- B C D E
31
Number of companies gaining performance bands
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