Climate Change Climbs Boardroom Agenda Among Leading Global Firms

NEW YORK, Sept. 20 /PRNewswire/ -- Carbon management is becoming a strategic business priority and competitive driver for the largest global companies, despite the lack of global agreement on climate change. These are among the findings of the 2010 Global 500(1) report and leadership index released today by the Carbon Disclosure Project (CDP), produced by PwC and sponsored by Bank of America Merrill Lynch.

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Carbon performance leaders are forging ahead of competitors – 85% of these leading global companies surveyed reported having board or senior executive level responsibility for climate change and nearly half (48%) are now embedding climate change initiatives into the overall business strategy and across the organization.

Amidst global regulatory uncertainty, nine out of ten companies surveyed identified significant commercial opportunity arising from climate change, separating the companies driven by risk-factors, from those companies identifying and seizing competitive advantages and cost-benefits.

The top five Global 500 leaders for 2010 announced today included: Siemens, Deutsche Post, BASF, Bayer and Samsung Electronics. These companies are in the new Carbon Performance Leadership Index (CPLI) and scored highest (95 or above out of 100) in the Carbon Disclosure Leadership Index (CDLI).

Despite the significant increase of boardroom and executive-level engagement, and 65% of Global 500 respondents implementing emissions reduction targets, still only 19% of the Global 500 companies are showing significant emissions reductions.

This growing lead demonstrated by the CPLI – those companies with the highest performance scores and demonstrated commitment to strategy, setting emissions reductions plans, governance and stakeholder communications – also highlights the disparity between incorporating climate change strategy across the business and actually seeing concrete cuts in emissions for many businesses.

North America significantly lags Europe in disclosure and performance.  21% of European respondents are in the CPLI, compared to 6% of North American respondents.

The global report shows two main areas of focus for action: the energy efficiency of operations, likely encouraged by cost savings potential, and the development of innovative products and services that enable customers to cut their emissions.

"Fuelled by opportunities to reduce energy costs, secure energy supply, protect the business from climate change risk and reputational damage, generate revenue and remain competitive, carbon management continues to rise as a strategic priority for many businesses," said Paul Dickinson, CEO of CDP. "Companies globally are seizing commercial carbon opportunities, often acting ahead of any policy requirements. More companies than ever before are reporting through CDP and measuring and reporting their emissions which is the first building block in working towards a low-carbon economy."

"As companies evaluate sustainability trends – such as competition for natural resources, economic globalization, and climate change – the likely outcome is a fundamental shift in business strategy," said Dennis Nally, chairman, PwC International.   "We are finding that leaders in this area design corporate-level objectives to aggressively pursue growth while simultaneously reducing emissions."

The Global 500 Report was launched today at the CDP Global Forum at Bank of America headquarters in New York, marking the beginning of Climate Week. Influential business leaders and government officials from around the world and across the spectrum of industries – from financial services, energy, consumer products and manufacturing – will explore key issues and solutions around the central theme of: 'Climate Innovation = Commercial Opportunity'.

To download the report please visit www.cdproject.net.

Top scoring companies in CDLI and CPLI and the largest non-responders

The companies with an * are those that have been in the Global 500 CDLI for three consecutive years(2).

NOTES TO EDITORS

About CDP

The Carbon Disclosure Project (CDP) is an independent not-for-profit organization holding the largest database of primary corporate climate change information in the world. Some 2,500 organizations across the world's largest economies now measure and disclose their greenhouse gas emissions and climate change strategies through CDP, in order that they can set reduction targets and make performance improvements. This data is gathered on behalf of 534 institutional investors, with combined assets under management in excess of $64 trillion, as well as purchasing organizations and government bodies and made available for integration into business and policy decision making. For more information visit www.cdproject.net.

About PwC

PwC (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

© 2010 PwC. All rights reserved.  "PwC" refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL). Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm's professional judgment or bind another member firm or PwCIL in any way.

(1) Largest global companies as listed by the FTSE Global Equity Index Series (Global 500)

(2) 2008, 2009 and 2010

SOURCE Carbon Disclosure Project