Over 80% World’s Largest Companies Not Achieving Carbon Targets
According to a report put up by PwC, only 19% of world’s largest companies have made appreciable carbon reductions. Over 500 largest companies are contributing 11% of global carbon emissions.
The annual Carbon Disclosure Project survey of Global 500 and S&P 500 companies says that though 65% companies have implemented the given target for emission reduction but only 19% have been able to achieve considerable carbon reductions which included Philips, Siemens, RBS and Bayer as some of the top performers.
Climate change initiatives have been integrated into the business by almost half of the respondents. 90% of respondents are optimistic about commercial opportunities that carbon reduction segment offers. Even climate change is being seen as a commercial opportunity rather than a risk.
Alan McGill who is a specialist on carbon reduction and climate change at PwC says that effective reporting on climate change and carbon prints may enable fair assessment of the performance of the company and direct financial implications.
McGill further added that several investors are asking questions about the robustness and credibility of the accumulated data on carbon and climate change. They were also enquiring whether the management is using such information to gear up business strategy and in improving performance.
According to the survey, over 60% companies are getting their data verified by independent audit teams and are using the audit report for boosting credibility with both the public and the investors.
McGill concluded that it has been established that carbon emissions and climate change have a direct impact on the economy and efficiency of a company and now is the time to set out credible assurance standards. There should be robust system and process to collect data on carbon emission and climate change which ought to be analyzed and used to do value added business.