Carbon Disclosure Project Global 500 report, produced by PwC, is launched today at New York Climate Week

BASF, Boeing & Cisco top the charts as this year’s global corporate climate leaders.

Allianz, Consolidated Edison, EMC, Reckitt Benckiser, Siemens along with BASF, Boeing and Cisco Systems were among the global corporations leading efforts to tackle climate change, according to this year’s Carbon Disclosure Project (CDP) Global 500* Report.

This year’s Global 500 Report, produced by PricewaterhouseCoopers, received the highest response rate ever from corporations (409 responses, representing 82% of the Global 500, up from 77% last year), the highest level of disclosed corporate greenhouse gas emissions (83% of respondents reported Scope 1 and / or 2 emissions **, up from 72% last year) and a doubling of response rates in the BRIC countries (Brazil, Russia, India, China). It also contains the greatest level of detail to date.

Carbon Disclosure Project also launched its new performance scoring pilot methodology at this year’s Global launch, one of the first events of New York Climate Week. The performance scores measure corporations’ actual performance in responding to and reducing their contribution to climate change and is intended to complement the Carbon Disclosure Leadership Index (CDLI).

The CDLI rates firms according to the level and quality of their disclosure and reporting on greenhouse gas emissions and climate change strategy data. The companies topping the table on carbon disclosure (CDLI ratings) in 2009 are: Bayer, BASF, HSBC Holdings, Walmart and Chevron. In 2010, CDP plans to formally incorporate the performance pilot into its analysis and perform a deeper level analysis of the performance actions disclosed by their participants.

“Incorporating performance into CDP 2009 has been a positive step: it has provided distinction between observing and rewarding good reporting versus positive action,” says Paul Dickinson – CEO of Carbon Disclosure Project. “It will help show where risks are being managed and opportunities maximized, and provide investors with insight into how well companies are preparing to compete in a low carbon environment.”

Commenting on the results and implications of the Carbon Disclosure Project’s Global 500 report, Robin Menzies, Partner, Sustainability Practice, PwC Ireland said:

“This year’s report moves reporting of carbon emissions and climate change adaptation beyond data alone to forward looking performance impacts. This information will become increasingly critical to investors, particularly if the long term policy stability and targets needed by business emerge from Copenhagen."

“The regulatory requirements regarding measurement and reporting are coming down the line fast and two tracks are emerging. The leaders are fast tracking investment to act on opportunities, such as the development of new products and service offerings."

“Investing early means companies have more options open to them, bringing savings and return on investment earlier, and as evidenced by this year’s report, these companies are now identifying more opportunities, than risks associated with climate change.”

“On the slow track are companies who leave action to the interim or the long term. They may end up paying a higher price, and have fewer options open to them on a range of issues including strategy, energy, financing and reporting.”

Commenting on the results overall Robin Menzies continued:

“The increase in response rates recognises pressure from consumers, the higher profile of climate change risks at board level, and increased investor awareness on how the impacts of climate change can affect the future of the business.”

“There’s a clear increase in understanding by business of the impacts of climate change, better identification of the opportunities, and integration of the information into decision making process at a board level in business.”

“Performance related measurement and reporting is becoming critical and gaining increased interest in Ireland. Companies will need this information to start adapting their business effectively to a low carbon environment.”

Commenting on the issues of carbon measurement and reporting, Robin Menzies added:

“Businesses' ability to collate, analyse and act on carbon emissions and climate change data is getting better, as the increase in disclosure and response rates demonstrates.”

“It has taken us almost 100 years to get to a consistent form of international accounting for financial information and the standards that apply to them. The reality is we don’t have the same time frame for similar global standards for climate change measurement and reporting to emerge. With the integration of the performance pilot, CDP provides a rigorous, robust and consistent framework on measurement and reporting for investors and businesses.”

As the United Nations Climate Change Conference in Copenhagen approaches, the report revealed that companies covered by the EU Emissions Trading Scheme (EU ETS) tend to achieve higher scores on both disclosure and performance (20% and 25% higher respectively) which may reflect the organisational rigour imposed by mandatory legislation.

The best performing companies all shared the following behaviours:

They are taking effective action to manage risks and capitalise on new opportunities
Show carbon reduction activities that deliver results
Incorporate expected regulation into forward thinking and planning

Other key findings from 2009 Global 500 Report:

51% of the Global 500 companies report emission reduction targets, up from 41% in 2008
Only 36% of reported carbon reduction targets stretch beyond 2012: A global agreement in Copenhagen in December is needed to provide increased certainty for Global 500 companies looking to set medium and long-term emission reduction targets, according to respondents
Five countries (France, Germany, Japan, US and UK) out of 30, accounted for both 70% of respondents and 70% of total emissions disclosed (Scope 1 and 2**)
The response rate from Brazil, Russia, India and China (BRIC countries) has doubled since 2008 to 44%, including a 100% response rate from Brazil
The number of Asian companies responding to CDP 2009 increased by 39% (51 to 71) from CDP 2008
The Global 500 are highly influential in global emissions reduction with total reported Scope 1** emissions alone equating to 11.5% of global emissions. Disclosed Scope 1 emissions are 3.6 billion tonnes of CO2-e
The Information Technology sector achieved the highest average performance score overall

ENDS

About CDP

The Carbon Disclosure Project, founded in 2000, represents some 475 global institutional investors, with more than US $55 trillion in assets under management. As an independent not-for-profit organization, CDP collects key climate change data from some 2,500 major corporations around the globe and has assembled the largest corporate greenhouse gas emissions database in the world. CDP also works with multinational organizations to facilitate the collection of climate change relevant data for their supply chain.

*Global 500 is the 500 largest companies in the world by market capitalisation based on the FTSE Global Equity Index Series.

** Scope 1: GHG emissions generated through the direct burning of fossil fuels.
Scope 2: GHG emissions generated from purchased electricity.
Scope 3: all other indirect emissions that include sources stemming from the company’s activities not owned or controlled, such as supply chain emissions and business travel.

See below for top scoring companies

2009 Top Performance Scoring and Largest non-responding Global 500 Corporations

Top Scoring Companies in the Carbon Disclosure Leadership Index

Top Scoring Companies on Performance in CDP 2009

Largest Non-responders in 2009 by Market Capitalization