Investors need to understand how their investments are contributing to the problem, and also how they could be impacted by a changing climate. This report addresses the first of these challenges. Among its findings, the report demonstrates that UK corporate emissions are globally significant. Direct carbon emissions from the UK’s 100 largest companies by market capitalization amounted to 480 million tonnes of CO2-e in 2003/04, or about 1.6% of the global total.
Emissions are concentrated in terms of sectors and stocks. Just five sectors accounting for 29% of market capitalization generated 85% of direct carbon emissions: Oil & Gas, Electricity, Mining, Steel and Leisure. In addition, two-thirds of emissions are accounted for by five companies: Shell, BP, Scottish Power, Corus and BHP Billiton. The concentrated nature of emissions provides a focus for further investment analysis and shareholder engagement.