Companies looking to carbon management to manage risk
Hello again and welcome to blog number 2! This time I thought I’d talk about the Carbon Disclosure Project (CDP) - a voluntary investor initiated project that has been tracking company emissions since 2002. The Australia and New Zealand Climate Change Report 2012 has been released and covers companies representing 85% and 91% of the ASX200 and NZX50 respectively, that’s over 650 investors representing US$78 trillion in assets – the big boys!
One of the surprising things about this report for me is the finding that these companies are increasingly comfortable with carbon pricing! Not what we hear in the media!! Stats that demonstrate this include companies who felt carbon pricing represented a risk fell 12% on last year, and only 3% of responding companies rated risks associated with carbon pricing as high.
Businesses are looking to carbon management to manage their risk not only for the impact of carbon on costs but also their reputation. The report says the major driver for the increased reporting by companies is the expectation of greater scrutiny of their operations and performance including requests for disclosure.
The good news is they’re also identifying new opportunities (35% of them according to the report) implementing energy efficiency actions (60%) and starting to report on scope 3 emissions. Whilst I’d like to see these figures a lot higher, given many have just started on their carbon management journey, it's kinda what you’d expect to see.
You get the feeling from the media that companies are scared of carbon pricing and aren’t doing anything about it when this report shows the opposite - if only you heard more about this in the mainstream media!
The full report is available at: https://www.cdproject.net/CDPResults/CDP-Australia-NZ-Climate-Change-Report-2012.pd