The Carbon Disclosure Project (CDP) has warned in its latest report that the UK’s largest companies are failing to address global implications of climate change through long-term financial strategies.
The report, named Are UK companies prepared for the international impacts of climate change?, looks at greenhouse gas emissions data and climate change strategies of FTSE 350 companies. It reveals a lack of strong measures in three key areas.
First, the CDP found that companies are not taking enough action to address the global implications of climate change, despite 69% of FTSE 350 firms having international operations across 145 nations.
Companies are focusing on the short-term, with only 32% reporting risks and 14% opportunities related to a time of 10 or more years. In addition, almost half of companies do not engage with their supply chain to monitor greenhouse gas emissions and implement climate measures in the business strategies.
Chief executive at CDP Paul Simpson said, “Clearly a large part of the operations of UK companies are international and are insufficiently accounted for by companies when considering their environmental impact. There are advantages, such as reduced costs and increased resilience that these companies can benefit from by looking more comprehensively at their value chains and taking a longer term view.
“The latest IPCC report is a wake-up call: UK companies must better integrate climate change management into their business strategy and CDP’s report gives clear steps – in the way of five straightforward actions – that can be taken by companies to do this.”
Among the top companies by disclosure and performance are Diageo, British Land and GlaxoSmithKline with 98 points, followed by HSBC (97) and Anglo American (96).