CLIMATE CHANGE and ECONOMIC EQUITY: can industry match the efforts of citizens?

Source: INSNET

Dutch Sustainability Research (DSR) and Respect published findings of a benchmarking study on climate change best practice. The research indicates that corporations are taking part in numerous interesting and innovative climate change related initiatives. However, overall climate change disclosure remains patchy and inconsistent and it therefore remains difficult to determine real leadership.The report urges corporations and policy makers to promote accountability and stimulate best practice in the field of climate change. To this end, corporations and policy makers should further stimulate meaningful, focussed and standardised reporting on climate change. As comment to the benchmarking study, Kaj Embrén, partner of Respect, says:
All the companies in this study show that they have a formal statement on Climate Change, but only 45 % have formulated corporate targets and clear deadlines in terms of GHG-gases. So, it is important to strengthen the work with target setting in the companies further
DSR reviewed the performance of 20 corporations on a selected number of climate change best-practice indicators drawn from international guidelines. The study shows that companies are keen to demonstrate leadership in this field. There is no indication that climate change action compromises financial performance. The study however also reveals that climate change related reporting remains fragmented. Data needs to be gathered from various documents including annual reports, sustainability reports, and websites. Overall, it remains difficult to assess actual corporate leadership on climate change.
Hans-Ulrich Beck, Research Director at DSR, explains: “The difficulty stems mainly from the fact that data disclosed is not easily comparable given the scope and methodologies applied. Furthermore, current disclosure often fully omits material emission sources in particular from the use of products.”
The study highlights that the lack of transparency will make it difficult for climate change leaders to reap the full benefits of climate change leadership such as strengthened reputation or brand awareness. Similarly, there is little pressure for laggards to take action. In order to promote corporate leadership, steps need to be taken to increase corporate accountability and access to meaningful climate change data.
In order to promote transparency and corporate best-practice in the field of climate change, the study urges corporations and policy makers to take necessary steps to:
· Promote more consistent, meaningful, and focussed corporate reporting on climate change; · Facilitate public access to corporate climate change data through a public climate change repository · Provide more visibility to climate change leaders through third party climate change accountability/transparency certification; and
· Reward specific performance standards or emissions reduction achievements through third party climate change leadership labels