CDP launches 2013 FTSE 350 report: Global climate change will have major impact on UK PLC

Published at 12:01 PM on 09 October 2013

CDP today launches its FTSE 350 Climate Change Report 2013. In the wake of the 5th assessment report (AR5) just published by the Intergovernmental Panel on Climate Change (IPCC) confirming that global warming is man made, this report provides an annual update on greenhouse gas emissions data and climate change strategies at the UK’s largest public companies. 

The report ‘Are UK companies prepared for the international impacts of climate change’ is co-written by professional services firm PwC.  This year 94% of the FTSE 100 and 74% (69% in 2012) of the FTSE 350 responded to the investor request for information sent by CDP.  Based on data from 260 companies (238 in 2012) submitting responses, the report focuses on the reporting of indirect emissions and supply chain impacts, with these key findings: 

  • UK companies’ greatest risk from climate change likely to be global, not local: 69% of the FTSE 350 have international operations across 145 countries, exposing them to regulatory, physical and other climate related risks, but are also well-placed to benefit from international opportunities.  Most report risks (86%) and opportunities (82%) but over a tenth of companies (13%) report no risks at all, indicating inadequate integration of climate change management into business strategy
  • Short-term planning persists: respondents are looking primarily at direct, shorter-term risks, with only 32% of companies reporting risks and 14% opportunities with timeframes of ten years or more;
  • Limited engagement with supply chain leaves risks uncovered: Nearly half (48%) of companies looked at do not engage with their supply chain on emissions or climate change with the majority of emissions from value chains not currently measured. Just over a third of respondents report indirect risks, compared to nearly three quarters reporting direct risks, suggesting companies are not sufficiently assessing their whole value chain.

Paul Simpson, chief executive at CDP, the international not-for-profit organization dedicated to creating sustainable economies, says: “Clearly a large part of the operations of UK companies are international and are insufficiently accounted for by companies when considering their environmental impact. There are advantages, such as reduced costs and increased resilience that these companies can benefit from by looking more comprehensively at their value chains and taking a longer term view.

The latest IPCC report is a wake-up call:  UK companies must better integrate climate change management into their business strategy and CDP’s report gives clear steps – in the way of five straightforward actions - that can be taken by companies to do this.

This is timely, as with the advent of mandatory reporting here in the UK, all companies listed on the main market must now maintain systems to report on their emissions data.”

Jonathan Grant, Director at PwC says: “For many companies, the debate about the science is over. The challenge now is to translate climate risks into business risks and how investment strategies can be updated to address them.  Some of the FTSE100 companies have a sophisticated and long term response to climate risk and are evaluating the potential impacts of climate change on their operations, customers and supply chain.  More detail in the climate models, in terms of timing and location of impacts, will help companies incorporate climate risks into their planning and investment decisions.  Those in the FTSE250 often have shorter term and narrower horizons and will be reactive to commodity price volatility, policy change or climate shocks.”

James Bevan, CIO at CCLA adds: "Climate change poses considerable risks to global security, economic stability, and the portfolios of long-term investors.  The City and UK plc are increasingly aware that we need to support global policy makers in introducing an appropriate carbon price so that financial markets and multi-nationals can increasingly lead the low carbon transition. In the meantime, CDP's performance bands enable CCLA to run ambitious and effective collaborative engagement programmes.  Today's excellent report highlights the progress being made and points to the challenges ahead."

Richard Pamenter, VP Environmental Sustainability at GSK says: “Understanding the risks and opportunities around climate change is important for an international company like GSK if we are to bring more medicines to more people in a more sustainable way. Our long term goal is to be carbon-neutral across our value chain by 2050.  This means not just reducing emissions at our own facilities, but right across our value chain from the sourcing of raw materials to the use of our products by patients and consumers.  Measurement and disclosure of value chain emissions is a critical first step on our journey to be carbon neutral.”

The full report can be accessed here: https://www.cdproject.net/CDPResults/CDP-FTSE-350-Climate-Change-Report-2013.pdf

Ends

About CDP

CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information.  CDP works with market forces, including 722 institutional investors with assets of US$87 trillion, to motivate companies to disclose their impacts on the environment and natural resources and take action to reduce them.  CDP now holds the largest collection globally of primary climate change, water and forest risk commodities information and puts these insights at the heart of strategic business, investment and policy decisions.  Please visit www.cdp.net or follow us @CDP to find out more

About PwC

PwC’s global sustainability and climate change team of over 700 professionals is led by a UK team of over 100. They work with public and private sector clients, NGOs, private entrepreneurs, policy makers and think tanks delivering the complete range of advisory and delivery services related to sustainability and climate change, risk analysis and performance measurement tools, climate modeling, measurement and reporting. The firm won UK Consultancy of the Year in 2011 & 2012 in the BusinessGreen Leaders Awards recognizing the leaders and shapers of the emerging low carbon economy.

Notes

2013: top companies by disclosure and performance, as below

Company


Sector

Disclosure score

Performance band

Diageo

Consumer Staples

98

A

British Land

Financials

98

A

GlaxoSmithKline

Healthcare

98

A

HSBC

Financials

97

A

Anglo American

Materials

96

A

British Sky Broadcasting

Consumer Discretionary

95

A

BT

Telecommunication Services

93

A

Barclays

Financials

92

A

Morgan Advanced Materials

Industrials

92

A

Reed Elsevier

Consumer Discretionary

91

A

BG Group

Energy

89

A

 

For media information:

Penny Cross, CDP Director of Communications; + 44 (0) 20 7415 7083; + 44 (0) 7919 074926
[email protected]

Rowena Mearley, PwC - Media Relations, Sustainable Development & Climate Change; +44 (0)20 7213 4727; +44 (0)7841 563 180 [email protected]



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