Three trends in FTSE 100 carbon reporting performance
A research has been carried out into the carbon reporting performance of the FTSE 100 for the past four years. The research allows us to highlight those companies at the cutting edge of best carbon management and reporting practice, identifying those taking their responsibility to mitigate climate change seriously. Marks and Spencer and BT ranked joint first place in this year’s research.
This study also reveal that, although there are improvements in the corporate reporting of carbon emissions, there is still work to be done for many companies in the FTSE 100. Companies may be collecting data and reporting this to various stakeholders, but when it comes to taking _action_and reducing emissions, not enough is being done.
Three areas emerged from the 2014 research that increasingly critical component for companies taking action on their emissions.
1. Carbon strategy and targets
The research this year shows that the vast majority of FTSE 100 companies do not demonstrate a clear, strategic approach to target setting in their reporting. BT is one of the only companies in the FTSE 100 to set its corporate climate change targets based on a robust scientific approach. The company uses a methodology called the Climate Stabilisation Intensity (CSI) Target to assess financial and environmental performance alongside the necessary carbon reductions the planet must make in order to avoid catastrophic climate change.
2. The importance of value chain emissions
The research in 2013 found that the most forward thinking companies looked beyond data collection towards more innovative and dynamic ways to engage with their supply chain on carbon reductions. The increased focus on value chain in 2013 has continued into 2014: 83% of companies in the FTSE 100 request emissions data from their suppliers or considers carbon emissions as part of their procurement policies compared to 75% in 2013.
3. Addressing climate change risks and opportunities
In this year’s research, 61 companies were found to have performed a materiality assessment of the risks and opportunities of climate change. Having identified these risks, the next challenge facing businesses is using them to inform action, through sound risk management and value generation activities.
Finally, 85 companies reported carbon data in their annual reports in 2014 as opposed to 56 companies in 2013.