A first of its kind global index of the listed companies leading the charge in the fight to mitigate climate change is released today. It comprises 187 companies who received 'A' grades for their superior strategy to reduce their carbon footprint. Historical analysis shows that the index outperforms the Bloomberg World Stock Index by 9.6% over a four year period from 2010 - dispelling economic arguments against pursuit of a low carbon future.
The A List: The CDP Climate Performance Leadership index has been created at the request of 767 investors who represent more than a third of the world's invested capital, and comes at a time when the role of multi-national corporations in climate change is becoming increasingly scrutinized.
The index is informed by information provided by nearly 2,000 listed companies, from Apple to Zurich Insurance Group, and has been independently assessed against CDP's widely-respected scoring methodology and ranked accordingly.
187 businesses from around the world, including the likes of BMW AG, Samsung Electronics and Unilever, demonstrate a superior approach to climate change mitigation. Accordingly, they have received an A grade for their performance, earning them a position on the first ever global ranking of corporate efforts to mitigate climate change, specifically. Collectively, these companies have reduced their total (absolute) emissions by 33 million tonnes in the past reporting year – equivalent to turning London's car owners into cyclists for two and a half years.
The release of today's index follows renewed political focus on climate commitments at last month's UN Secretary General's Climate Summit. Earlier this year, Standard & Poor's Ratings Services stated that climate change will hit countries' economic growth rates and public finances, whilst former U.S. Treasury Secretary Henry Paulson recently said that climate change is, "the single biggest risk that exists to the economy today."
And with the IPCC commenting last year that we are a mere 30 years away from exhausting our 'carbon budget' if current rates continue, combined with the fact that emissions are rising globally at an alarming rate, it's clear that both businesses and governments need to raise their carbon reduction ambitions.