Carbon Disclosure Project reports due 31st May 2010

25 Feb 2010Archived News Climate Change Matters

The Carbon Disclosure Project (CDP) reporting deadline for invited ASX 200 companies to submit their report is 31st May 2010. Other companies are able to submit a report regardless of not being listed on the ASX 200.

The CDP is a voluntary investor initiated project that has been tracking company emissions since 2002. The CDP acts on behalf of 475 institutional investors, holding US$55 trillion in assets under management, as well as some 60 purchasing organisations such as Cadbury, PepsiCo and Walmart.

Unlike NGER, Companies completing the CDP’s information request have the opportunity to provide information on a range of factors above and beyond their emissions data. These include: physical and regulatory risks and opportunities; emission reduction plans; and investment risks and opportunities. In essence, it provides companies with the opportunity to focus their attention on the development and realisation of a corporate strategy.

Over the coming weeks, emissions data from over 600 liable companies under the NGER Act will be made public for the first time. There is increasing investor interest in understanding business exposure to carbon. This is evidenced by the formation of bodies such as the Investor Group on Climate Change, representing approximately AUD$500 billion in Australia and New Zealand and similar networks in Europe and the United States. As such, we can expect the data disclosed under NGER to be closely scrutinised by business and financial analysts. The NGER reporting mechanism provides companies with limited opportunity to communicate any context around their carbon emission figures or management strategies going forward to achieve reductions. Analysts will be interpreting this data based almost entirely on the limited perspective of the NGER reporting framework.

Energetics strongly encourages its clients to participate in the Carbon Disclosure Project. We have extensive experience in assisting companies elucidate their carbon strategies and prepare documentation for the CDP. In fact, we have helped a number of our clients to achieve global and sectoral CDP Leadership status.

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