Overview

• None of the countries in the Asian ex-Japan sample are bound by Kyotos emission resource targets.
• There are few drivers for climate change reporting in the Asia ex-Japan region.
• Asian companies had a low response rate in comparison with other regions, with a significant number declining to participate.
• Although small in number, almost all companies that were surveyed previously had answered the questionnaire.
• In Asia, most investors are not addressing the issue of climate change.
• South Korea had the highest response rate - a likely reflection of the government’s proactive stance on addressing climate change.
• The Utilities sector represented the largest, and most carbon intensive sector.
• There was no correlation between a company’s sector type and whether it reported to the CDP.
• Larger than average companies are more likely to answer the CDP questionnaire.
• Smaller than average FT500 companies decline to participate, but the opposite is true for Asian companies.
• Companies that quantified their emissions were significantly smaller than those that responded without quantifying data.
• Very few Asian companies were willing or able to quantify their emissions. Even fewer companies defined how they did so.
• Companies from Hong Kong, India, South Korea and Taiwan were more likely to quantify their emissions.
• There was no correlation between the carbon intensity and the sector of companies that discussed their emissions.
• While more companies disclose data, only a small proportion provide verification.
• Information on how companies assemble data from their constituents is crucial.
• Participation in voluntary programs will be a critical component in the final palette of solutions.

Why did CDP commission the analysis?

The Carbon Disclosure Project (CDP) provides a coordinating secretariat for institutional investor collaboration regarding climate change. CDP’s aim is twofold: to inform investors regarding the significant risks and opportunities presented by climate change; and to inform company management regarding the serious concerns of their shareholders regarding the impact of these issues on company value. 

Trucost’s analysis of the Asia ex-Japan sample clearly indicates that investors in the region often lack the necessary information to make informed decisions with respect to carbon emissions, despite such emissions emerging as a business cost in key areas of the world. Given the global nature of many companies, and the global nature of the climate change problem, it is crucial for the scope and quality of emissions disclosures to improve. As a result, Asian investors now have a unique opportunity to assess responses from Asia’s carbon leaders and to work with laggards so that they better appreciate and understand the disclosure requirements of the investment community.

Report image: Analysis of responses

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