Corporate Climate Action A-List Revealed

Published Nov 5, 2015 6:56 PM by The Maritime Executive

Three weeks ahead of COP21, the U.N. climate change conference when national leaders meet to agree a global deal to reduce carbon emissions and limit global temperature warming, disclosures from the world’s largest listed companies reveal the extent to which corporations have shifted their strategies over the past five years to become part of the solution to the climate challenge.

The international not-for-profit organization CDP - which holds the most comprehensive set of global corporate environmental data - has issued its annual Climate Change Report on behalf of 822 investors representing US$95 trillion.

The new publication includes the 2015 Climate A List, which comprises those companies identified as A grade for their actions to mitigate climate change. Nearly 2,000 companies submitted information to be independently assessed against CDP’s scoring methodology; 113 have made the list.

CDP’s executive chairman and co-founder Paul Dickinson says: “The influence of the corporation is mighty. The momentum of business action on climate change suggests we have reached a tipping point, where companies are poised to achieve their full potential. They need ambitious policy at both a national and international level that will support them in this regard and will catalyze participation from industry at scale.”

CDP charts the changed corporate landscape over five years, comparing data from 1,997 companies this year, with 1,799 in 2010. Companies globally are taking action and making investments to prepare for the transition to a low carbon economy. For example, at 94 percent, nearly all companies assign board or senior management responsibility to climate change and three quarters offer incentives for improving climate performance.

Nine of every ten companies now have activities in place that are lowering their carbon output, compared with less than half in 2010. The percentage of businesses with targets to reduce the intensity of their greenhouse gas emissions has also more than doubled.

The growing momentum among the corporate world is coinciding with increasing engagement on climate change from the investor community. If the recently introduced landmark pension fund voting guidelines known as the Red Lines are applied, failure to disclose to CDP may put chairpersons’ jobs at risk. And more investors are betting on a sustainable future: US$21.4 trillion was invested in 2014 in funds with environmental, social and governance mandates, up 61 percent in two years.

Companies making it to the A List include Siemens, Schneider Electric, PTT Exploration & Production Public Company Limited, E.ON, Iberdrola and Raytheon.

Individual company ratings are available here.

Siemens Scores 100 Percent

For the first time, Siemens has achieved the highest possible score in the CDP survey. For the transparency of its reporting on the opportunities and risks associated with climate change, the company received 100 (2014: 99) out of 100 possible points.

In addition, Siemens’ efforts to achieve energy efficiency and cut CO2 emissions enabled the company to reach Band A, the highest performance range. As a result, the company is also included in the Carbon Performance Leadership Index.

Roland Busch, member of the Managing Board of Siemens AG with special responsibility for sustainability, noted, “We’re very pleased about our outstanding rating in the CDP’s climate change report. As one of the world’s largest providers of resource-saving technologies, Siemens has a clear responsibility to lead by example. That’s why we’re committed to making our global operations carbon-neutral by 2030.” Busch concluded, “We’re thus sending a clear signal to the upcoming climate conference in Paris that the private sector must take action to address climate change.”

MOL Recognized as CDP Leader

Mitsui O.S.K. Lines has announced that MOL has been recognized as a leader for the depth and quality of carbon emissions and energy data it has disclosed to investors and the global marketplace through the CDP global environmental disclosure system. MOL achieved a position in CDP's Japan 500 Climate Disclosure Leadership Index. MOL has been recognized two consecutive years and total three times for CDLI.

The company issued a statement saying: “Given the increasing demand for global environmental protection, MOL Group has been aware of the environmental impact of its business activities and regards the high level of transparency in the disclosure of climate change-related information as an important management issue. MOL has set an environmental activities policy to actively disclose environmental data in the midterm management plan STEER FOR 2020.

“From this point, as a responsible corporate citizen, MOL will continue its aggressive stance in terms of protecting the global environment.”