Climate Change Compass: The Road to Copenhagen

This report by research firm EIRIS compares 2009 performance of the 300 largest companies in the FTSE All World Index to 2008, and finds that while corporate commitment to mitigation has improved, unmitigated risk is still unacceptably high.

From the introduction to the report:

Climate change is now widely recognised as one of the most significant challenges facing the global economy. The projected impacts on the environment and society are unprecedented. Climate change is undoubtedly a critical theme for today’s (and tomorrow’s) asset owners and asset managers. But what should investors be doing?

Building on last year’s analysis, EIRIS reviewed the 300 largest global companies by market capitalisation listed on the FTSE All World Index to assess the current state of corporate responses to climate change. This report highlights the direction companies are taking with regard to the issue and examines its implications for investors.

Key findings:

• Some improvements, but further momentum needed — 33 percent of companies have unmitigated climate change risk (down from 34 percent in 2008) — 55 percent have short-term targets on climate change (48 percent in 2008) — 91 percent of high and very high impact companies disclose absolute CO2 or GHG emissions data (73 percent in 2008)

• Opportunities at Copenhagen — the U.N. Climate Change Conference may create significant opportunities for companies – linked to the development of green stimulus packages or a clearer regulatory framework.

• Engagement is key — many large cap companies face significant climate change risks and opportunities. Investors must understand the impact these issues will have on their portfolios and integrate climate change into their engagement strategies or when exercising voting rights.

You can download the report below, and visit EIRIS.org to learn more.