Climate change climbs boardroom agenda
This year, 82% of the Global 500 companies responded to the Carbon Disclosure Project (CDP), again increasing the number companies demonstrating action to move towards a low carbon economy.
What is striking is that the world's largest global companies believe managing carbon is truly becoming a strategic business priority and competitive driver, despite the lack of a global agreement on climate change.
Amidst this uncertainty, nine out of ten companies identified significant commercial opportunity arising from climate change, separating the companies driven by risk factors from those identifying and seizing competitive advantage and cost benefits. But, despite significant increase in boardroom and executive-level engagement, and 65% of Global 500 respondents implementing emissions reduction targets, only 19% are showing significant emissions reductions.
However, it is clear that actions are being taken to significantly improve results in reducing emissions. This year, respondents were asked to highlight their commitments to developing carbon strategies, emissions reduction plans, governance and stakeholder communication and, for the first time, leaders in this area have been given a performance score and ranking in a Carbon Performance Leadership Index.
What the Carbon Performance Index highlights is the disparity between incorporating climate chance strategy across the business and actually seeing concrete cuts in emissions for many businesses.
As companies evaluate sustainability trends - such as competition for natural resources, economic globalisation and climate change - the likely outcome is a fundamental shift in business strategy. Leaders in this area recognise the need to design corporate-level objectives to pursue growth while simultaneously reducing emissions.
