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EnvironmentUS companies need to boost climate change risk disclosure
The top US companies are still not being transparent about the risks of climate change to their business, according to a report from environmental lobbyist, Ceres, and socially responsible investor, Calvert.
The report, analysing the latest company responses to the Carbon Disclosure Project's (CDP's) request for information on climate change management, found that less than half (47%) of S&P 500 companies responded to the survey. Of those that did, many did not provide all the information being sought and 30% would not allow public disclosure of their responses.
Although 80% of the companies that responded addressed the need to reduce greenhouse gas emissions only a quarter disclosed measurable emissions reductions targets and specific time frames for reductions.
A separate analysis of the global responses to the CDP survey from electric power companies has found that when their environmental impact is properly accounted for few are creating overall economic value.
Research firm, Trucost, found that only six of the 25 companies analysed, which had provided quantifiable emissions information, added value to the economy. Responses to the CDP survey were most common from electricity companies when pressure from regulators and investors is strongest. All 11 power companies in Japan responded but none of the 32 Chinese firms did so.
Meanwhile, the CDP has joined with other groups, including, Ceres, the International Emissions Trading Association and the World Resources Institute, to form the Climate Disclosure Standards Board. This aims to establish a generally accepted framework for climate change reporting by companies. The framework will seek to have annual reports disclose: total emissions; assessment of the physical and regulatory risks of climate change; and strategic analysis of climate risk and emissions management.
LinksClimate Risk Disclosure by the S&P 500 International Emissions Trading Association
May, 2007 |
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