CORRECT:More Global 500 Cos Say Climate Change Key Issue-CDP
September 21 2009 - 7:53AM
Dow Jones News
Allianz SE (AZ), Consolidated Edison Inc. (ED), Siemens AG (SI),
BASF SE (BASFY), Boeing Co. (BA) and Cisco Systems Inc. (CSCO) are
among the global corporations leading efforts to tackle climate
change, as the issue moves to the forefront for the world's top
companies, the Carbon Disclosure Project's 2009 report on the
Global 500 said Monday.
This year, more of the world's largest 500 companies responded
to the CDP survey than in the past. They also gave more detail on
their activities to mitigate and adapt to climate change. The CDP
has published its climate change report every year since 2003.
The increase in disclosure this year to 82% of the Global 500
from 77% last year shows that despite the economic downturn and
other pressures, climate change remains high on the agenda and is
becoming an increasingly important issue for the majority of large
companies, CDP Chief Operating Officer Paul Simpson said.
"The increase is significant, and it really shows where the
world has moved in the past five years," Simpson said in a
telephone interview ahead of the report's release.
"When companies are responding voluntarily and in increasing
numbers, it shows that at the very senior level in the company,
climate change is seen to be a significant issue for their
corporations and that they must respond, must demonstrate
themselves to be a responsible company on this issue," Simpson
said.
Attitudes of the Global 500, based on market capitalization in
the FTSE Global Equity Index Series, are significant because they
account for around 11.5% of total global emissions.
The report's release comes as business leaders, heads of state
and the world's major investors congregate in New York this week
for a climate change summit led by United Nations Secretary General
Ban Ki-moon. The talks are to prepare for the U.N.-led climate
change conference in Copenhagen in December to negotiate a
successor treaty to the Kyoto Protocol.
The discussions in New York are to continue at the G20 meeting
that follows in Pittsburgh, Pa., Sept. 24-25.
Companies responding to the CDP survey said a global, legally
binding agreement in Copenhagen is important to provide the
increased certainty they need to set medium- and long-term
emissions reduction targets, the report said.
Bayer AG (BAY.XE), BASF, HSBC Holdings PLC (HBC), Wal-Mart
Stores Inc. (WMT) and Chevron Corp. (CVX) topped the table on
carbon disclosure this year, giving the most information about
their efforts to tackle climate change.
In addition to providing better disclosure, the Global 500 also
is performing better than last year with targets to reduce
emissions, engaging with key policy makers and developing new
products and services to adapt to the new business environment, the
report showed.
This year, 51% of the Global 500 companies said they have
targets to reduce emissions versus 41% last year and 36% have
targets that go beyond 2012, when the current climate change treaty
expires.
Chemicals company BASF SE, Cisco Systems Inc. and U.S. aerospace
company Boeing Co., the three companies that are among both the top
10 disclosers and performers, also demonstrate the move now to take
advantage of the opportunities rather than see climate change
legislation as a risk, Simpson said.
Cisco Systems is developing very high quality video conference
equipment for executives trying to reduce airline travel, and
Boeing is seeking to develop more efficient airplanes that emit
less carbon dioxide.
"Companies are starting to realize they can make a lot of money
if they take advantage of the opportunities," Simpson said.
Companies are more willing to take action on emissions now that
the U.S. is involved in the climate change debate, following the
election of Barack Obama. Increasing evidence from the scientific
community about climate change and the visible impact already being
seen around the world is also spurring companies on, Simpson
said.
Geographically, companies in Europe, where there already is a
carbon cap and trade scheme, tended to achieve higher scores on
both disclosure and performance.
However, more companies from the developing world, which will be
key to securing a global agreement in Copenhagen, are now
responding.
According to the report, 44% of the 36 Global 500 companies in
developing countries Brazil, Russia, India and China responded this
year, double last year's rate. A 100% response rate was received
from Brazil.
CDP, a London-headquartered non-governmental organization,
represents 475 institutional investors with $55 trillion in assets
under management.
-By Selina Williams, Dow Jones Newswires +44 207 842 9262;
selina.williams@dowjones.com