2Sustain

Each year for the past decade, the Carbon Disclosure Project (CDP) has published a report examining carbon reduction activities at the world’s largest public corporations.

For the first time ever in this ten-year history, the 2011 edition of the annual Carbon Disclosure Project (CDP) Global 500 report revealed that the majority of the companies have climate change actions embedded as part of their business strategy.

The report, titled Accelerating Low Carbon Growth, analyzed disclosures from 396 of the world’s largest companies and found that:

• 68 percent have climate change at the heart of business strategies, compared with 48 percent in 2010.

• Nearly half (45 percent) reported reduced greenhouse gas emissions as a result of emissions reduction activities –up significantly from 19 percent in 2010.

• 74 percent of Global 500 respondents reported emissions reduction targets, up from 65 percent in 2010

• The majority of respondents (93 percent) reported board or senior executive oversight for climate change (up from 85 percent in 2010), demonstrating the importance of climate change as a management issue.

It’s also most interesting to note that the report also identified a correlation between higher stock market performance over time, and representation on CDP’s Carbon Performance Leadership Index (CPLI) and the Carbon Disclosure Leadership Index (CDLI). More specifically:

• Companies with a strategic focus on climate change provided investors with approximately double the average total return of the Global 500 from January 2005 to May 2011.

As Paul Simpson, CEO of the Carbon Disclosure Project, points out this linkage puts companies that manage and reduce carbon emissions at a clear competitive advantage.

“The improved financial performance of companies with high carbon performance is a clear indicator that it makes good business sense to manage and reduce carbon emissions,” he said. “This is a win win for business – the short ROIs many emissions reducing activities have, can help increase profitability. Companies yet to take action on climate change will have to work hard to remain competitive as we head towards an increasingly resourced constrained, low carbon economy.”

The Carbon Performance Leadership Index and Carbon Disclosure Leadership Index are revised annually based on company submissions and present the leaders of the Global 500 in carbon performance and disclosure respectively. The top 10 best performing companies on both measures this year are: (more…)

Earlier this month, Consolidated (Con) Edison issued its 2010 Sustainability Report, detailing its long-term business strategy, an approach that relies on energy efficiency, renewable energy and recycling.

Con Edison is a New York-based utility that employs 15,000 employees, has $13 billion in revenues and holds $36 billion in assets. The company provides nine million people with electricity while balancing sustainability principles based on six fundamental points:

• Insist on green behavior from employees.
• Encourage green behavior to external stakeholders.
• Meet customers’ demands for a greener lifestyle through innovation.
• Partner with governments to create policies that match Con Edison’s sustainability vision.
• Develop an infrastructure for renewable energy.
• Include environmental and social values within its decision making process.

What are the results so far?

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A global study conducted by Carbon Disclosure Project (CDP) has found that transport companies are lagging behind other sectors in mitigating greenhouse gases and setting targets.

The first comprehensive report of its kind, this study surveyed 291 of the largest transport companies in the world, including those that cover road, rail, sea and air transport. The results show that: (more…)

The 2008 UK Climate Change Act establishes an aggressive UK target of 80 percent reduction in greenhouse gas (GHG) emissions from 1990 levels by the year 2050. It also creates an interim target of 34-42 percent reductions in GHG emissions by the year 2020, compared to 1990 levels.

So, are companies in the UK on track to meet these national targets? (more…)

Will your company be able to operate successfully in a water-constrained world? Do you know your water footprint?

Those are questions you need to be thinking about because according to the United Nations, by 2030 almost half of the world population will live in areas facing water stress or water scarcity.  Already, less than 1% of the world’s water is easily accessible fresh water, and in the future, this valuable limited resource will be facing even more pressure from: (more…)