Apple, BMW, and Google to use CDP Index to tackle climate change

Leading companies including Apple, BMW and Google have requested a copy of a new index by the CDP, formerly known as the Carbon Disclosure Project, in a move that could reduce their supply chain carbon emissions.

The index portrays 187 of the world’s largest companies who have made significant efforts to reduce their carbon emissions.

Apple, BMW, Google, Microsoft, Samsung Electronics and Unilever have all accomplished a grade “A” in reducing almost thirty-three millions tonnes of their emissions in the last year.

The positive outcome has concluded in increasing precision for investors as well as saving energy.

CDP analysis shows that the larger industries that are addressing the issues of climate change such as reducing green house emissions, preventing deforestation and preserving water resources, are benefitting from lower volatility of earnings and higher return on investment (ROI).

CDP have also revealed that the leaders of the ‘A-Listers’ receive specific benefits such as Yield win-win results, Applying business lens to climate change, Raising the bar on investment, and Shifting away from short termism.

The impact of climate changes has greatly affected the economies in the USA, the UK and Australia, suffering from heat waves and floods while costing the insurance companies over billion of pounds.

President Obama has also been vocal about his administarions Climate Action Plan.

Over three quarters of companies reporting to CDP this year have explored and produced many new strategies to tackle this ever-growing problem of climate change.

Calculating the degree of carbon emitted by companies to the Environmental, Social and Governance (ESG) criteria and associating a tax to this numerical figure as a part of their conventional system, is a proficient way in growing recognition and encouraging companies to tackle the climate issue.

Broadcasting and congratulating companies, whom have succeeded in reducing their carbon footprint, will also motivate this change toward a sustainable future.

Many of the achieving companies are situated in Europe, USA and Japan.

The Norwegian pension fund, at the Norges Bank, possesses over US$800 billion in assets and has dissociated from companies that do not meet their standards and have refrained from utilising resources from both palm oil and timber corporations.

However, some large companies have withheld information concerning essential data on climate change, such as Berkshire Hathaway, Facebook, Amazon.com Inc. and Comcast Corporation.

The Chief Executive Officer of CDP, Paul Simpson, has stressed the degree of importance that should be given to businesses that seek to focus their time and money in tackling these climate issues and succeeding.

He also articulates that “the unprecedented environmental challenges that we confront today are also economic problems. One irrefutable fact is filtering through to companies and investors.”