Revealed: The Companies Doing the Most to Combat Climate Change
LONDON, October 15, 2014 /PRNewswire/ --
From A for Apple Inc. to Z for Zurich Insurance Group, 187 companies illustrate that a low-carbon future does not mean low profit.
A new global index based on corporations that exhibit leadership through action to mitigate climate change has outperformed The Bloomberg World Index by 9.6% in the past four years. So finds analysis released today by CDP, an international NGO driving sustainable economies.
The research is published in The A List: The CDP Climate Performance Leadership Index 2014, which has been created at the request of 767 investors representing more than a third of the world's invested capital.
Data provided by nearly 2,000 listed companies has been independently assessed against CDP's widely-respected scoring methodology and ranked accordingly to inform this first-of-its-kind index.
187 businesses have achieved an A grade for their climate change mitigation activities and a position on the index. The USA is the country with the highest number of leaders, including Apple Inc., Google Inc, Microsoft Corporation and Wal-Mart Stores. Collectively, A List leaders have cut their total (absolute) emissions by 33 million metric tons in the past reporting year, equivalent to taking 7 million vehicles off the roads for one year.
Paul Simpson, Chief Executive Officer of CDP, says: "The unprecedented environmental challenges that we confront today are also economic problems. This irrefutable fact is filtering through to companies and investors. The businesses that have made it onto our first global list of climate performance leaders are to be congratulated for their progress; they debunk economic arguments against reducing emissions. However, global emissions continue to rise at an alarming rate. Businesses and governments must raise their climate ambition. The data shows that there is neither an excuse nor the time for lethargy."
Of those corporations that failed to disclose vital climate change data, the three largest in terms of market capitalization are Berkshire Hathaway, Amazon.com Inc. and Comcast Corporation.
The news follows a renewed political focus on climate commitments at the UN Secretary General's Climate Summit in New York last month and a growing consensus on the scale of the economic threat of climate change. Former U.S. Treasury Secretary Henry Paulson says climate change is, "the single biggest risk that exists to the economy today." Earlier this year Standard & Poor's Ratings Services stated that climate change will hit countries' economic growth rates and public finances.
An A List leader will:
- Yield win-win results.
The investments of A List companies to reduce carbon output yield average annual emissions reductions of 9% per company and achieve impressive financial results, with an average internal rate of return (IRR) of 57% for each project. Car manufacturer General Motors implemented route redesigns, mode changes from road to rail and other measures that have resulted in emissions savings of 244,000 metric tons a year and cost savings of $287 million. - Apply a business lens to climate change.
A List leaders demonstrate robust accountability for their contribution to climate change and have a heightened understanding of the business implications as a result. Although 96% say climate change poses a risk to their business, 99% see opportunities through mitigation strategies. South Korean construction group Samsung C&T Corporation, for example, reports that responding to consumer demand for green products can increase its sales profits by at least 9% within the next seven years. - Raise the bar on investment.
The A List represents just 9% of the 1,971 companies scored this year but accounts for US$23 billion of the annual investment to reduce carbon emissions, which is just under half of the US$50 billion invested by the full sample. Leaders go beyond the easy-to-achieve approach of energy efficiency. Spanish industrial technology firm Abengoa saves US$911 million annually having diversified its energy supply by installing two solar power plants.
The A List: CDP Climate Performance Leadership Index 2014, along with the climate disclosures of all companies publicly taking part in CDP's climate change program this year is available on CDP's website.
About CDP
CDP is an international, nonprofit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information. CDP works with market forces, including 767 institutional investors with assets of $92 trillion, to motivate companies to disclose their impacts on the environment and natural resources and take action to reduce them. CDP now holds the largest collection globally of primary climate change, water and forest risk commodities information and puts these insights at the heart of strategic business, investment and policy decisions. Visit http://www.cdp.net or follow us @CDP to find out more.
SOURCE CDP
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