CDP Global 500: 10% of Largest Companies Produce 73% of GHGs

BMW, Daimler, Philips Electronics, Nestlé, financial firm BNY Mellon, Cisco Systems and utility Gas Natural SDG are the best companies in terms of climate change disclosure and performance, according to the CDP Global 500 Climate Change Report 2013. The report is co-written by CDP, formerly known as the Carbon Disclosure Project, and PricewaterhouseCoopers. The analysis is based on the climate and energy data of 389 companies listed on the FTSE Global 500 Equity Index. Some companies, such as Apple and Amazon.com, did not respond to CDP’s request for emissions.

On the other end of the spectrum, 50 of the 500 largest listed companies in the world are responsible for nearly three quarters of the group’s 3.6 billion metric tons of greenhouse gas emissions, the report says.

The carbon emitted by the 50 highest emitting companies, which primarily operate in the energy, materials and utilities sectors, has risen by 1.65 percent to 2.54 billion metric tons over the past four years, the report says.

Also, the report says that there is a lack of detailed reporting and information of GHGs from sources related to company activities (Scope 3 emissions). Two thirds (72 percent) of the Global 500 measure emissions are associated with business travel but this equates to just 0.2 percent of the sample’s reported Scope 3 emissions. Nearly all financial businesses are managing their travel emissions but only 6 percent are reporting the emissions associated with their investments, the sector’s prime source of Scope 3 emissions.

The report says companies that demonstrate a strong commitment to managing their impact on the environment are generating improved financial and environmental results.  Analysis of the corporations leading on climate progress, as based on CDP’s methodology and including BMW, Nestlé and Cisco Systems, suggests that they generate superior stock.

Also it is important to emphasize that two leadership indices for the Global 500 are released in the report. The Climate Performance Leadership Index (CPLI) marks companies that are implementing a robust climate strategy and approach to reducing emissions. The Climate Disclosure Leadership Index (CDLI) identifies the most climate transparent companies. Both indices are used by investors to inform investment decisions relating to climate risks and opportunities.

Germany, Switzerland and the UK are over represented on the CPLI relative to the geographic composition of the Global 500. Although European companies are more likely to outperform in comparison to their peers in the USA, the number of North American companies achieving a position on the CPLI has more than doubled since 2012.

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