Manufacturing Barometer: Carbon emissions strategies for manufacturers
Reacting to increased public attention on the issue of climate change, PricewaterhouseCoopers (PwC) asked senior executives from large US-based industrial manufacturers about carbon emissions programs and whether they have acted to reduce their emissions.
A majority of manufacturers are developing or implementing a carbon emissions strategy
Although the US Congress has not yet enacted laws
to regulate carbon emission levels, potential legislation
looms. In anticipation, the majority (58 percent) of large
US-based industrial manufacturers report they have
already implemented (43 percent) plans within their
organizations to reduce or manage carbon emissions, or
are in the process of developing them (15 percent). Only
20 percent have no plans to reduce or manage
their companies’ carbon emissions, while 22 percent
were uncertain or did not respond.
Not only have many respondents already started to
prepare for upcoming regulation, but they have been
doing so for a relatively long time. Twenty-three percent
have had plans in place for three to fi ve years, and 27
percent for six or more years. Only 39 percent reported
having plans in place for less than two years. The
average length of time was 4.2 years.
Interestingly, while the majority of respondents are
already working toward reducing their organizations’
carbon emissions, only a small minority (8 percent) have
publicly stated these goals, and only 5 percent intend
to announce their plans within the next two years. The
remaining respondents were either unsure (68 percent)
of their plans or don’t expect (19 percent) to state their
carbon emissions plans publicly.
A sizable minority are waiting for more direction
Without regulations and standards, many respondents
(42 percent) believe that there are too many unknowns
to map out a business case to reduce or manage carbon
emissions. Similarly, 38 percent believe the cap-and-trade
arrangements in place today are too immature for their
companies to participate. A small minority of respondents
(13 percent) currently participate (5 percent) or plan to
participate (8 percent) in voluntary US or global carbon
exchange markets. However, many (40 percent) do not
plan to participate until they are fully regulated, while a
similar segment (35 percent) is unsure.
Who is responsible for enacting change?
While survey results indicate that US industrial
manufacturers are waiting for the government to issue
the necessary guidelines, a large majority (77 percent)
feel it is important for industry groups to work together to
help set industry-specifi c standards and goals for what to
measure and report. Seventy-three percent believe that
manufacturers should consider opportunities to reduce
emissions as a means to control fuel costs. Also, 14
percent request suppliers monitor carbon emissions
(12 percent) or plan to make this request within the next
two years (2 percent).
Without a fi rm indication of the stance the US government
will take to regulate carbon emissions, it is not surprising
that only 28 percent of senior executives surveyed believe
their organizations are prepared to participate in
a carbon-trading market today.
Our perspective
A wait-and-see approach is not advisable. Making
gradual changes each year will help manufacturers
comply with regulations more easily when such mandates
fi nally arrive. PricewaterhouseCooper’s white paper, Is
your company prepared to manage carbon as an asset?,
addresses common questions about carbon emissions
regulations and offers guidance to help US manufacturers
prepare for potential tax and accounting issues, as well as
understand the implications of cap-and-trade programs.
About the research
The Manufacturing Barometer is one in a series of quarterly business outlook surveys from PricewaterhouseCoopers.
The survey provides a view on the 12-month outlook for revenue growth, new investments, new hiring plans, emerging
business barriers and more. In addition to the business outlook, we hear from our panelists about special issues they
face as the business climate changes. Results of the quarterly business outlook surveys and special issue surveys are
available from www.barometersurveys.com. To receive out survey results by email, visit: www.barometersurveys.com/
mail.
Methodology
PricewaterhouseCoopers’ Manufacturing Barometer is a quarterly telephone survey conducted by the independent
research fi rm BSI Global Research Inc. Our regular survey panel consists of senior executives from a geographically
balanced sample of large companies in the United States. Ninety-fi ve percent of the panelists hold titles such as
president, CEO, CFO, VP of fi nance, treasurer, controller, internal audit director or other related title.
