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Back You are here: Home Business Eighty percent of top global corporations acknowledge climate risks – survey


Eighty percent of top global corporations acknowledge climate risks – survey

Climate change has become a visible agenda among giant companies across the globe as extreme weather events happen globally, according to the survey Carbon Disclosure Project.

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Eighty one percent of the Global 500, a ranking of top corporations, has recognized the physical risks of climate change to their businesses, while 37 perceive these risks as a real and present danger, up from 10 percent in 2010.

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“The pressure is growing for companies to build long-term resilience in their business,” said Paul Simpson, chief executive of the Carbon Disclosure Project.

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“There are still leaders and laggards but the economic driver for action is growing, as is the number of investors requesting emissions data. Governments seeking to build strong economies should take note,” he added.

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The report found that 96 percent of the responding companies have taken mitigation efforts to senior executive level, which is three percent higher than last year.

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Meanwhile, 78 percent of the companies have considered climate change into business decision-making and strategies, up by 10 percent.

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The results of the survey noted that this growth in figures contributes to a 13.8 percent reduction in reported carbon emissions from 3.6 billion metric tons in 2009 to 3.1 billion metric tons this year.

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The Carbon Disclosure Project report ranked the Global 500 in terms of their emissions disclosure and environmental performance, with German companies Bayer and Nestle rising as leaders in efforts to measure and cut their carbon footprints. Both of them got a perfect score of 100 based on a set of indices by the Carbon Disclosure Project.

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Other German firms that dominated the top 10 list were chemical company BASF, automobile manufacturer BMW and utility group Gas Natural.

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Majority of the companies said their decision-making about long-term strategies and plans has been influenced by climate change, considering it a cause for capital losses.

“Increasingly, our key stakeholders – our people, clients, shareholders and partners – expect us to operate our business in a way that is economically, socially and environmentally sustainable. Meeting these expectations helps us to function successfully as a business, attract and keep high-caliber people, retain key contracts and take on new challenges,” said consultancy company Logica.

However, global lead for sustainability and climate change at PwC Malcolm Preston said even with a yearly progress, the reality is the level of corporate, as well as national ambition to cut emissions remains insufficient.

While a significant number of companies are demonstrating awareness of the strategic opportunities linked in addressing climate change, few are just setting up goals and making investments and misses out to fasten them with concrete actions, the study concluded.

“Companies that work to decouple greenhouse gas emissions from financial returns have the potential for both short and long-term cost savings, sustainable revenue generation and a more resilient future,” said Mr. Simpson. – C. Dominguez

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