Trucost, part of S&P Dow Jones Indices, assessed the trends in corporate disclosure of carbon emissions to see how companies are managing risks in three important areas: quantifying supply chain carbon emissions, setting meaningful emission reduction targets, and pricing carbon to understand the current and anticipated financial implications of impending regulatory and policy measures.
Headline findings include:
- In 2017, APAC businesses continued to expand their carbon reporting to all-time highs, rising 22% since 2016 and 32% since 2014. However, this reporting varied greatly in terms of depth and breadth.
- Many corporations, particularly in the health care and financial services sectors, do not fully track the carbon sources that are most material to their business activities.
- APAC companies lag global companies in modeling Scope 3 emissions to simplify their carbon calculations.
- Companies in APAC are increasingly setting science-based targets that will cut emissions in line with international efforts to limit global warming to 2 degrees Celsius.
- Nearly one-half of APAC companies have set or plan to set an internal price on carbon to help understand the risks and opportunities of the transition to a low-carbon economy.