Carbon Disclosure Project 2010: FTSE 350

FTSE 350 companies score high in carbon performance

This year, 69% (243) of FTSE 350 companies responded to the Carbon Disclosure Project (CDP), a rise from 2009 with a reported 67% (236) response rate. The increase indicates that despite a recession and lack of global agreement, that companies are committed to transparency and accountability and this is being embedded in business strategy.

More than eight out of ten FTSE 350 companies that reported to CDP identify significant opportunities from climate change. Companies are showing innovative examples of turning the agenda into commercial opportunity and 51% have integrated climate change into their corporate strategies.

The report shows that carbon performance leaders in the UK are emerging, with HSBC Holdings, Reckitt Benckiser, Royal Bank of Scotland Group, Scottish and Southern Energy and Tesco among UK companies leading the efforts to tackle climate change.

It is clear to see that UK companies are taking actions to significantly improve results for reducing emissions with thirteen companies from the FTSE 350 scored highly enough to be recognised on this year’s Carbon Performance Leadership Index (CPLI).

This year's responses to CDP show that companies recognise that carbon is going to be, at some point, a regular feature on the balance sheet. Going forward quality assurance of carbon and climate change data will become increasingly critical - for reliable management information for the company and robust performance metrics for investors.

Additional key findings of the report are:

  • 85% of companies in the FTSE 350 are now disclosing carbon emissions.
  • 58% of companies have targets in place for carbon emissions reduction, but only 40% show evidence of making progress towards meeting them.
  • Over 50% now have management incentives related to climate change including financial ones (up from 40% last year).
  • 96% of respondents have responsibility for climate change at the board or other executive level.