Participation in the Carbon Disclosure Project – a group of institutional investors – has risen from 35 to 95 companies, according to CDP’s second report on climate change and shareholder value. The participating companies represent assets worth $10 trillion, more than double the figure for 2003.
Climate Change and Shareholder Value – State of the World 2004, authored by Innovest Strategic Value Advisors, is based on responses to CDP’s second information request to the FTSE500 Global Index of companies. It finds that responses have risen from 47% to 59% since the first survey. Two thirds (65%) of companies in high-impact sectors are now measuring and reporting emissions, as compared with half (51%) previously, the project reveals. Certain greenhouse gas management tasks, however, are proving difficult, such as the integration of carbon costs into management accounting. Moreover, 12 companies failed to respond to the information request despite the fact CDP signatories own more than a tenth of their shares. Contact Paul Dickinson, Carbon Disclosure Project, on 07958 772 864 (http://www.cdproject.net)
Two steps forward?
Industry targets for cutting carbon dioxide emissions were lowered by the government on May 6 in response to concerns from businesses. The UK is now on course to cut carbon dioxide emissions by 15.2% between 1990 and 2010. An earlier draft plan set the target at 16.3% between 1990 and 2010. The original plan was revised following queries from industry groups as to the accuracy of draft emission projections and the competitive impact of the scheme. Contact DTI on 020 7215 5000 (http://www.dti.gov.uk)
Climate control
The Climate Group, a coalition of cities, states, governments and corporations committed to collaboration on cutting greenhouse gas emissions, was officially launched by Tony Blair on April 27. The independent, non-partisan charity aims to bring major reducers of carbon dioxide together to spread best practice on reductions of greenhouse gas emissions around the world. At the launch, Mr Blair said that in the long term, climate change is probably the single-most important issue the global community faces and that policy makers must confront two key issues:
l efforts against climate change need to occupy a central place in political decision making, beyond any election or parliamentary cycle
l debates about climate change are often based on the false premise that there is a trade-off between economic growth and environmental protection. Government and business must work together to show that this is not the case. Contact Climate Group on 01932 268 309 (http://www.theclimategroup.org)
Saving for a rainy day
Climate change is increasing the weather risks on domestic and commercial property insurance policies by between 2%-4% a year, a new report reveals. A changing climate for insurance, published by the Association of British Insurers on June 8 predicts that water related claims, which doubled to more than £6m between 1998 and 2003, could triple by 2050. Contact Malcolm Tarling, ABI, on 020 7216 7410 (http://www.abi.org.uk)
A grip on gas
A mandatory greenhouse gas reduction programme for the US could be both effective and politically feasible, according to a cross-sector group convened by the Aspen Institute and the Pew Center on Global Climate Change, it was announced on April 1. The group, which included representatives of the energy and mining industries, agreed on two core principles for a mandatory system:
l broad rather than sector-specific coverage, and coverage of multiple gases, not just CO2
l phasing of reduction targets
The group proposed a hybrid programme that would combine elements of a ‘cap-and-trade’ approach with tradeable efficiency standards. Contact Katie Mandes, Pew, on 00 1 703 516 0606 (http://www.pewclimate.org)
Greenhouse gas reporting
The World Business Council for Sustainable Development and the World Resources Institute released on May 5 a new edition of the international standard used by businesses around the world to report on and set targets for their greenhouse gas emissions. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition includes a new chapter on how to set up credible GHG reduction targets, as well as more case studies, annexes and guidance. Contact Adlai Amor, WRI on 00 1 202 729 7736 (http://www.wri.org)
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