Sep 21 2009

Corporations Endorse Climate Action

Posted by: Jonathan Marshall

Vocal naysayers claim it's too expensive to combat climate change, but a new survey suggests that a majority of large corporations now think otherwise--indeed, that their self-interest requires taking action. 

The Carbon Disclosure Project's Global 500 Report, produced by PricewaterhouseCoopers and released today, shows that 51 percent of Global 500 companies report emission reduction targets, up from 41 percent in 2008.

More and more large companies are becoming transparent in their disclosures of carbon emissions as well, with more than four out of five now reporting greenhouse gas emissions they generate through direct burning of fossil fuels or indirectly through purchases of electricity. 

The organization praised several U.S. companies for leading efforts to deal with global warming, including Cisco Systems, Boeing and Pepco Holdings along with Consolidated Edison, EMC, E.I. du Pont de Nemours and Hewlett Packard.

Leaders in disclosure include Bayer, BASF, Wal-Mart Stores and Comerica. PG&E also ranked near the top of the list, along with Cisco Systems, Chevron and Public Service Enterprise Group.

When it comes to climate, corporations "are demonstrating they are willing, ready and able to engage with it," Carbon Disclosure Project chief executive Paul Dickinson told the Washington Post.

The goal of the Project's survey is to "help investors gain exposure to companies that actively manage their impact on the environment."

Companies that are still hiding their carbon footprints may soon have to come clean. The EPA plans to issue a final rule any day that would require large emitters--who release 25,000 tons or more of carbon dioxide annually--to declare their pollution levels.

The not-for-profit Carbon Disclosure Project was founded in 2000 "to collect and distribute high quality information that motivates investors, corporations and governments to take action to prevent dangerous climate change." With more than 2,200 organizations around the world now reporting on emissions and climate change strategies, the Project claims to have "assembled the largest corporate greenhouse gas emissions database in the world." 

The organization represents about 475 global institutional investors, with more than US $55 trillion in assets under management.

Last week, a separate group of 181 institutional investors representing more than $13 trillion in assets released a major policy statement calling for a tough international treaty to impose binding constraints on greenhouse gas emissions and promote "massive global investments in low-carbon technologies."

Signers included the California and New York state employees' retirement funds, he California State Controller and Treasurer, and a host of private assets managers.

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