The status of Indian companies in CDP Global 500 Climate Change Report 2012

Annual Carbon Disclosure Project (CDP) Global 500 Climate Change Report has been released on 12^thSeptember 2012 in London. The Global 500 are the largest companies by market capitalization included in the FTSE Global Equity Index Series.

In 2000, the Carbon Disclosure Project (CDP) was launched by an UK based nonprofits organization helping to disclose greenhouse gas emissions. CDP acts on behalf of 655 institutional investors, holding $78 trillion in assets under management. About 3,000 organizations in some 60 countries around the world now measure and disclose their greenhouse gas emissions and climate change strategies through CDP.

Following table shows world’s best companies in terms of climate change disclosure and performance; (From the report)

It can be seen from the above table; German companies dominate with the highest disclosure score. On the other hand, the world’s largest non-responders to CDP’s request for emissions this year were Apple Inc., Berkshire Hathaway, Royal Bank of Canada, Caterpillar Inc., (Please click here for more information).

From India, Wipro has featured in Carbon Disclosure Leadership Index (CLDI) for 2012 with a Score of 95 on 100. As compared to other IT companies, Wipro is one of the seven IT companies across the world to be accommodated on the list.

The CLDI is the key indicator developed by CDP to highlight the constituent companies within the FTSE Global Equity Index Series (known as Global 500) which have displayed a strong approach to information disclosure regarding climate change. Following table shows the status of the Indian companies in climate change related disclosure;

Climate Change is real and happening. Countries around the world have signed the Kyoto Protocol – a global treaty to reduce Green House Gases (GHG’s) emissions. Being a signatory country of the Kyoto protocol, they need to reduce their GHG emission by taking actions like promoting renewable energy, improving energy efficiency and restricting deforestation. The industrial sector has a major share in GHG emissions as they consume enormous amount of energy and natural resources.  Therefore, countries have started developing climate change related policies to force them to comply with the emissions reduction initiatives of the country. Considering these regulatory actions, investors around the world are also promoting sustainability criteria through their investment actions. Sustainability is increasingly becoming one of the top criteria for investment choices.  The Carbon Disclosure Project acting on behalf of the financial investors to gather and disclose climate change related information. Businesses around the world have started reporting to CDP which helps them indentify climate change related risks and opportunities to their businesses. Let’s hope positive participation from more and more companies from India in the next reporting year.

Information source: CDP Global 500 report

Image credit: Estormiz, On Wikimedia