In addressing the issues from climate change, business is in many ways ahead of government and as part of the Carbon Disclosure Project, business are starting to see risks from climate change…
“…few politicians aside from President Obama dare utter the words “climate change,” more global businesses see its impact as a “real and present” danger to their operations, according to a new analysis from the Carbon Disclosure Project (CDP).
More than three-quarters (81 percent) of the world’s largest public companies that report their greenhouse gas (GHG) emissions data and sustainability strategies now include physical threats and disruptions from climate change — such as flooding, drought and fires — among their corporate risk disclosures, reports the latest CDP Global 500 Climate Change report, co-written with professional services firm PwC.
What’s more, 37 percent of the 405 companies reporting to CDP list those factors as a serious threat, up from 10 percent in 2012.
“Extreme weather events are causing significant financial damage to markets,” said Paul Simpson, CEO of the CDP. “Investors therefore expect corporations to think more about climate resilience,” he said. “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.””
Also from the same analysis comes the following statement:
“The companies with the best climate leadership strategies tend to be those that take a long-term view more than 10 years into the future. CDP has created a separate index to recognize these companies called the Carbon Performance Leadership Index (CPLI). The companies that make it onto these lists are generally generating superior returns for investors.”
These statements tend to be made a fair amount and the mistake that can be made is that companies that actually manage carbon are going to outperform other ones, when what it actually means is that these are well managed companies and they manage all risks and competitive threats well and it just so happens that carbon is one of these risks that also fall into this camp.