London, UK [RenewableEnergyWorld.com] Global corporations are looking at climate change as a potential driver of risk and opportunity and have pointed to crafting clear regulation as key to managing the impacts, according to this year’s findings from the Carbon Disclosure Project (CDP).
In front of a backdrop of regulatory uncertainty which could be delaying strategic investment decisions, senior management at many companies are calling for greater visibility on climate change related policy so that they can better anticipate the impact of regulation driven carbon markets and carbon prices.
Despite this uncertainty about regulation, the majority of global companies are acting to reduce their emissions, the CDP report said. Seventy-four percent are now reporting emissions reduction targets, showing companies are increasingly taking climate change mitigation seriously.
The findings published by the CDP, which represents some 385 institutional investors with US $57 trillion in assets under management, also revealed the Utilities sector to be the most transparent in their reporting of greenhouse gas emissions, with 93% responding to CDP. In contrast the Oil and Gas sector (an early adopter of carbon reporting) performed relatively poorly with a response rate of just 69%.
“We can see from 2008 responses to CDP a marked increase in levels of engagement from companies, with more companies reporting than ever before. With increased regulation on the horizon, investors are requiring this information to better understand the credit worthiness of companies in their portfolio and how climate change might affect their profitability” said Paul Dickinson, CEO of CDP.
For more information on the report, click here.