Slow progress on reducing emissions

Embargo 00.01CET 16th October

Stockholm, 16 October 2012. Nordic companies are getting better at measuring GHG emissions and reporting efforts to tackle climate change. However despite the economic slowdown emissions from big business fell only marginally in 2011. This is one of the key findings of the 2012 edition of the annual Carbon Disclosure Project (CDP) Nordic 260 Climate Change Report, published today.

 The report, which analyses disclosures on greenhouse gas emissions from 145 of the largest companies in the Nordic region, shows:

Slow progress on emissions reductions. Comparing data from companies which responded both this year and last year, greenhouse gas (GHG) emissions fell marginally in 2011, but by less than might have been expected given the slowdown in the economy. In most cases, emissions reduction activities outweighed the impact of any growth in output by individual companies. Overall, however, this effect is largely cancelled out by rising output at a number of large emitters.

High and rapid ROI. Emissions reduction measures continue to generate high and swift returns on investment. Of a total of 490 measures disclosed, 51% are expected to pay off within three years, and 27% of these within one year.

Low ambition on targets – some exceptions. Of a total of 145 respondents, 103 disclosed at least one target for reducing emissions. However, approximately 80% of these targets (with some notable exceptions) fall short of the level of ambition needed to meet stated national and international goals for GHG emissions in the longer term.

The most commonly-reported climate change related risk is regulatory changes. More stringent climate-related regulation and taxation is a material risk for some companies in emissions-intensive sectors. Elsewhere, most firms cite regulatory risks as significant, although there are few indications that regulation might pose a serious threat to the business.  Estimates from several companies suggest that a moderate increase in the price of carbon would increase total costs by around 1%.

Reputational risk a concern for many. In sectors with limited exposure to regulation, reputational risks appear to be a strong driver of efforts to control emissions. Several companies use the word ‘devastating’, while others point out that equity and brand values would suffer directly if companies were not seen to be playing their part in addressing climate change. 

Paul Simpson, CEO of the Carbon Disclosure Project, “Investors expect corporations to think more about climate resilience.  There are still leaders and laggards but the economic driver for action is growing, as is the number of investors requesting emissions data.  Governments seeking to build strong economies should take note.” 

CDP’s questionnaire asks companies to provide information on their emissions, their goals for reducing them and their assessment of a range of risks and opportunities related to climate change – from higher carbon taxes to rising sea levels.

The CDP report features responses from 145 companies and rates them according to their climate change transparency with the best disclosers entering CDP’s Carbon Disclosure Leadership Index (CDLI).

Swedish companies in the CDLI (with disclosure score)

Saab 92
Holmen 91
Nordea 91
Electrolux 86
Boliden Group 85
SCA 84
Stora Enso 84
Hakon Invest 83
Scania 83

 CDP then assesses companies according to the scale and quality of their emissions reductions and strategies, and ranks these according to performance bands.  The best performers enter CDP’s Carbon Performance Leadership Index (CPLI).  The indices are used by investors to assess corporate preparedness for national or international emissions regulation and to guide investment decisions.

Swedish companies in the CPLI (Performance)

This year one Swedish company made the CPLI:

Holmen (Performance A)

The CDP Nordic 260 Climate Change Report is launched today in Stockholm (13-15 at SEB, Kungsträdgårdsgatan 8) with keynote speaker Minister Peter Norman and welcome from Annika Falkengren, SEB.

 Note to Editors

 The Carbon Disclosure Project (CDP) is an independent not-for-profit organisation holding the largest database of primary corporate climate change and water information in the world. Some 3,500 organisations across the world’s largest economies now measure and disclose their greenhouse gas emissions, water usage and assessment of climate change and water risk and opportunity through CDP, in order that they can set reduction targets and make performance improvements. This data is gathered on behalf of institutional investors, purchasing organisations and government bodies and made available for integration into business and policy decision making. For more information visit www.cdproject.net.

For more information please contact:

Emma Henningson

Tel +46 705 145726

Email Emma.Henningsson@cdproject.net

Amanda Haworth-Wiklund

Email Amanda.Haworth-Wiklund@cdproject.net