Posted by Juliette Terzieff
United Nations backed negotiations to forge an international treaty to fight global warming may be stumbling, but that hasn’t prevented companies around the world from taking steps to address climate change risks on their own and with the help of stakeholders. For the first time in the ten years since Carbon Disclosure Project began its annual Global 500 report, results show a majority of companies including climate change concerns and actions in their business planning.
The CDP report, Accelerating low carbon growth, found 68 percent of the 396 companies analyzed have climate change strategies, up from 48 percent a year ago. The percentage of companies reporting on greenhouse gas emission reductions also jumped from 19 percent to 45 percent over the same period.
Seventy four percent of respondents reported having a carbon reduction target in place, with Consumer Staples as the industry with the highest percentage and Energy with the lowest proportion.
CDP also looked at indications of financial benefits of corporate climate change efforts and found companies that have climate change strategies earned nearly twice the return for their investors than those that do not between 2005 and 2011.
“The improved financial performance of companies with high carbon performance is a clear indicator that it makes good business sense to manage and reduce carbon emissions. This is a win win for business – the short ROIs many emissions reducing activities have, can help increase profitability,” CDP CEP Paul Simpson said. “Companies yet to take action on climate change will have to work hard to remain competitive as we head towards an increasingly resourced constrained, low carbon economy.”
The top ten performers in terms of performance and disclosure according to the report are (in alphabetical order) Bank of America, Bayer, BMW, Cisco, Honda Motor Company, Philips Electronics, SAP, Sony Corporation, Tesco and Westpac Banking Corporation.
Measures taken by corporations surveyed in the report range from monetary incentives to employees to reduce their own environmental impact, energy efficient changes to working spaces and production processes, product design and low carbon energy installations. Changes in practice, such as minimizing business travel through the use of new technological capabilities like telepresence, have exploded across the globe.
The CDP’s S&P 500 annual report on American corporations found similar results, with the percentage of companies reporting climate change strategy as policy jumping from 35 percent in 2010 to 65 percent in 2011.
United Nations authorities are also moving forward with climate change battle plans, working to leverage the power of technology to help countries mitigate and adapt to the effects of global warming.
The world body’s Technology Executive Committee held its’ first working meeting this month to begin examining how it will manage policy and technical issues related to technology transfer as the policy arm of the Technology Mechanism. The process was established at the last climate summit in Cancun as a means to aid developing countries protect vulnerable populations and work towards the creation of sustainable futures.
“The goal of the Technology Mechanism can only be achieved through a wider and deeper collaboration among all countries with the active engagement of relevant stakeholders, including the research
community, academia and, importantly, the private sector,” Christiana Figueres, head of the United Nations Framework Convention on Climate Change, said after the meeting.
The Committee will be looking at ways to increase information sharing on emerging technologies and engaging stakeholders to advance the process.
Continued action from the private sector and its’ stakeholders remains crucial as governments struggle to align around a binding international climate treaty. Climate negotiators from around the world are looking to minimize expectations for progress at the next UN sponsored climate summit beginning at the end of November in Durban, South Africa, and few expect a successor agreement to the Kyoto Treaty to be part of the meeting’s outcome.







