The Carbon Disclosure Project, an independent not-for-profit organisation based in the UK, has just published the findings of a study about the importance of environmental issues for 500 of the world’s largest companies. And the results are very encouraging to say the least. This year, 45% of the 396 companies that agreed to answer the survey have reduced their greenhouse gas emissions following a set of specific measures. A real improvement compared to last year’s 19%.

Companies are globally improving
68% of the world’s largest companies are now taking climate change and environmental issues into account, against 48% last year. The survey also states that this positive change is enabled by an increase in oil prices, the gradual decrease in energy resources and the understanding of the significant return on investment environmentally friendly measures can bring. In addition, 59% of these companies claim that the costs related to such measures are covered after only three years.

It is also very interesting to see that when the performances on the stock market are good, the company will be more likely to take measures in order to tackle climate change and reduce carbon emissions. Their income will eventually be twice as high compared to companies that did not take measures for the environment (from 2005 to 2011). 74% of the 396 companies have now clear objectives in terms of carbon emissions, compared to 65% last year.

Apple falling behind
Tesco, BMW, Sony and the Bank of America are among the companies that disclose the most information and lead the way in terms of sustainable development measures and targets. Apple, Amazon and the Bank of China, on the other hand, are clearly falling behind. But setting measures and targets can really be effective: Tesco started to reduce its carbon emissions years ago, and is now saving up to 230 million euros per year in energy consumption. Generally speaking, public institutions are also much more active than companies from the energy sector.

What this study shows is that it is becoming more and more pertinent for companies to reduce their emissions, as the return on investment is quick and significant. Most of the time, profitability is also certain. These findings show that from now on, companies not taking the environment into account and failing to define a specific strategy in terms of sustainable development might fall behind other companies. To finish with, the Carbon Disclosure Project highlights the fact that most managing directors now have a stronger commitment towards environmental issues, and that it affects every level of a company.

Julien Revest.