Cisco, Pepco and Boeing Top S&P’s 500 Corporate Climate Charts
Carbon Disclosure Project 2009 Reports launched at New York Climate Week
Cisco Systems, Boeing and Pepco Holdings along with Consolidated Edison, EMC, E.I. du Pont de Nemours, Hewlett Packard, PPG Industries and Transocean were among the U.S. corporations leading efforts to tackle climate change, according to this year’s Carbon Disclosure Project (CDP) S&P 500 Report.
The Carbon Disclosure Project, founded in 2000, represents some 475 global institutional investors, with more than US $55 trillion in assets under management. As an independent not-for-profit organization, CDP collects key climate change data from some 2,500 major corporations around the globe and has assembled the largest corporate greenhouse gas emissions database in the world. CDP also works with multinational organizations to facilitate the collection of climate change relevant data for their supply chains.
This year’s S&P 500 Report, produced by PricewaterhouseCoopers, received the highest response rate ever from corporations (332 responses, representing 66% of the S&P 500, up from 64% last year); the highest level of disclosed corporate greenhouse gas emissions (260 responses, representing 79% of respondents, up from 73% last year); a sharp spike in companies reporting emissions reduction targets (169 responses, representing 52% of respondents, up from 32% last year) and the greatest level of detail to date.
Carbon Disclosure Project also launched its new performance scoring pilot methodology at this year’s Global launch, one of the first events of New York Climate Week. The performance scores measure corporations’ actual performance in responding to and reducing their contribution to climate change. The scores are intended to complement the Carbon Disclosure Leadership Index (CDLI), which rates firms according to the level and quality of their disclosure and reporting on greenhouse gas emissions and climate change strategy data.
Companies leading in carbon disclosure for 2009 are Comerica, Walmart, Chevron, PG&E, Public Service Enterprise Group and Spectra Energy. Results showed that some corporations, including Boeing, Cisco Systems, Consolidated Edison, E.I. du Pont de Nemours, EMC, Hewlett Packard, News Corporation, Pepco Holdings, PPG Industries and Transocean scored highly in the CDLI and also led in this year’s performance scoring pilot. In 2010, CDP plans to formally incorporate the performance pilot into its analysis and perform a deeper level analysis of the performance actions disclosed by their participants.
“Incorporating performance into CDP 2009 has been a positive step: it has provided distinction between observing and rewarding good reporting versus positive action,” says Paul Dickinson, CEO of Carbon Disclosure Project. “It will help show where risks are being managed and opportunities maximized, and provide investors with insight into how well companies are preparing to compete in a low carbon environment.”
Other key findings from 2009 S&P 500 Report:
• Companies continue to embed climate change policies and practices
enterprise-wide (both “at the top” as well as throughout the firm)
across all sectors: 68% (222) of respondents report board or
executive-level responsibility for climate change oversight, up from
65% (204) last year
• Respondents see more climate change business opportunities 86% (281)
than risks 82% (269), though regulatory risks loom large in the
fast-moving legislative environment
• Corporate greenhouse gas reduction targets almost doubled: The number
of respondents disclosing targets expanded from 102 (32%) to 169 (52%)
suggesting that reductions targets are now moving from a nice-to-have
to a need-to-do
• Corporations’ indirect emissions (Scope 3), such as emissions caused
by supply chain and employee travel, are being more widely reported.
Disclosure of Scope 3 emissions rose by 215.5%, suggesting a better
understanding of these emissions. Reporting of Scope 2 (purchased
electricity) emissions also rose by 50%.
• Incentives for action: A trend of linking corporate compensation
incentives programs to the achievement of climate change related goals
(115 respondents, or 35%) is emerging.
• Utilities and IT sector were best represented in Carbon Disclosure