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VicSuper Carbon Counts 2008
21 November 2008
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Key findings include:
- Australian companies have responded to calls for disclosure on greenhouse gas emissions. Since the VicSuper Carbon Count 2007, a further 10% of corporate greenhouse gas emissions have been disclosed. The number of companies publicly disclosing adequate emissions data has increased from 25% to 30% year on year.
- Several sectors have disclosed emissions for the first time, including Textiles, Apparel & Luxury Goods, Airlines, Electric Utilities and Media.
- Carbon-intensive industries dominate disclosures, with 85% of direct greenhouse gas emissions analysed in this report based on actual corporate disclosure. Data for these emissions were disclosed by 30% of companies in the ASX200. Trucost estimated the remaining 15% of direct emissions.
- The quality of corporate disclosure has improved, with 34% of emissions now reported in accordance with the Greenhouse Gas Protocol, up from 1% in the 2007 analysis. Standardised disclosure in line with this accounting methodology enables investors and other stakeholders to properly assess and compare emissions and exposure to carbon costs.
- Some 7% of companies report in accordance with the Greenhouse Gas Protocol, up from 3% in the previous analysis. Companies generally disclose direct emissions and emissions from purchased electricity only.
- Several companies responded directly to the VicSuper Carbon Count 2007, including Babcock & Brown, Origin Energy and Futuris Corporation Limited.
Extract
Australia's food production, agriculture and water supplies are vulnerable to the impacts of climate change. The Australian Government plans to introduce an emissions trading scheme - the Carbon Pollution Reduction Scheme (CPRS) - as part of its strategy to contain the environmental and economic effects of climate change. The proposed CPRS aims to limit the amount of greenhouse gas emissions that industry can emit from 2010.
VicSuper has commissioned Trucost to profile the carbon emissions of the top 200 public Australian companies, those listed in the S&P ASX200 index. The analysis looks at the potential financial implications of sector and company emissions when carbon costs are applied under the emission trading scheme. The 2008 analysis builds on the 2007 Carbon Count report. In particular, the 2008 edition examines changes since last year's analysis in company disclosure and direct emissions from fuel combustion and industrial processes that will be most affected by the CPRS.
Why did VicSuper commission the research?
VicSuper, with the support of the Environment Protection Authority (EPA) Victoria, has commissioned Trucost to examine the greenhouse gas emissions and risk exposure of companies in the S&P ASX200.
In light of these climate policy developments, this analysis aims to:
- Quantify the amount of greenhouse gases emitted by companies in the S&P ASX200.
- Compare direct carbon emissions and disclosure levels with findings in the 2007 VicSuper Carbon Count.
- Identify the carbon intensities of companies and industry sectors in terms of revenue.
- Assess financial risk to companies and sectors from carbon costs.
VicSuper has been active in advocating the importance of understanding climate change as a material investment risk and opportunity for a number of years. As a founding member of the Investor Group on Climate Change Australia and New Zealand and a signatory to the United Nations Principles for Responsible Investment (UN PRI), VicSuper has been helping to raise awareness and tackle the risks of climate change amongst institutional investors and the assets they invest in.
Standardised, quantitative corporate disclosure on greenhouse gas emissions is important to enable investors to factor climate change risks and opportunities into ownership practices. As such, this report also includes analysis of disclosures on greenhouse gas emissions by corporate Australia to 30 June 2008. Trucost has assessed the quantity and quality of disclosures on greenhouse gas emissions by companies listed in the ASX200.
Report image: Carbon disclosure
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