Carbon Disclosure Project 2011 – Global 500 Report
Australia, Italy, Switzerland and the UK are also performing relatively well. The USA had the most companies in the CPLI for the second year running with 6 – however, this only represented 21% of the CPLI while the USA represented 36% of respondents. Likewise, Japan and Canada CPLI representation was lower than their proportional number of responses. Notable absentees from the CPLI in 2011 include Brazil, China, Russia, South Africa and Spain.
CPLI and Shareholder Value
Companies included in the CPLI in 2011 have a higher total return18
from
January 2005 to May 2011 than Global 500 companies, outperforming them by a total of 40 percentage points over the six year period.
When analyzing companies included in
the CPLI for the last two19
consecutive
years, an even stronger result is revealed: they outperformed the Global 500 by over 50 percentage points over the same period. This indicates that companies which have an integrated climate change strategy and are successfully managing their emissions demonstrate higher financial performance.
It is noted that the relationship between strong carbon performance and total return has not been fully explored. The relationship between total return and carbon performance does not necessarily indicate that one causes the other; both will be influenced by a range of factors. These may include the quality of the company’s management or the company’s broader approach to identifying and capitalizing on
opportunities or managing risks. These findings would benefit from further analysis by the investment community.
It is notable that the period when CPLI companies’ total return falls below Global 500 companies’ total return is in late 2008, during the economic downturn. Although total return fell across all sectors, the downturn particularly affected the Financials sector which makes up the highest proportion of companies in the CPLI.
Figure 28: Total return % (US$) 120 100 80 60 40 20 0
-20 -40
18. Total Return includes interest, capital gains, dividends and distributions realized over a given period of time.
19. CPLI was launched in 2010 and is now in its second year. 34
Companies included in the CPLI for two consecutive years (2010-2011) CPLI 2011
Global 500 2011 Source: Bloomberg
Total return % (US$) Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11
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