Special Edition – Carbon Disclosure Project (CDP) 2012
12 September 2012
Launch of CDP Global 500 Climate Change Report: Business resilience in an uncertain, resource-constrained world
We're pleased to announce that the 2012 Carbon Disclosure Project (CDP) results have been published. The report was co-written with PwC, CDP's Global Advisor and report writer since 2008. CDP notes that companies around the world benefit from reporting to CDP as they are better equipped to improve their sustainability and climate change management in a structured way, including:
- Developing a governance system within the organisation to communicate views, concerns and actions on climate change
- Gaining a holistic view of climate-related business risks, opportunities and management strategies
- Improving understanding on how to measure and manage carbon emissions
- Achieving a higher level of engagement with institutional investors and accountability to all stakeholders
We find that reporting to CDP and achieving a high score is an indicator of a company's maturity in relation to the management of climate change issues, including CO2 emissions.
Some highlights from the report:
- The PwC analysis of current emissions trends and pledges show that absolute emissions reductions of around 4% per year from 2020 to 2050 will be required to limit warming to 2°C, as agreed at COP17.
- However, the average longer term target for companies’ emissions reductions is currently only 1% per year, well below the 4% reduction required.
- Recent extreme weather events are driving climate change up the boardroom agenda. The percentage of companies reporting physical risk as current has jumped significantly from 10% in 2010 to 37% in 2012. 81% of companies currently report the physical risks of extreme weather events.
- Reputation and positive stakeholder engagement are seen as key drivers for climate change action. Companies now recognise the benefits beyond short-term financial returns or savings.
- Respondents reported increasing boardroom focus on climate change and integration of climate change policies into business strategies.
- The report’s analysis suggests that companies achieving leadership positions on climate change generate superior stock performance.
For more insights
You can find the full CDP report and key highlights of the report here.