Pictet and Ethos present the results of the Carbon Disclosure Project's second survey for Switzerland, which was distributed to the country's 100 biggest listed companies. The companies were asked about their climate change strategies and their data on greenhouse gas emissions. The survey shows that while most are aware of the issue, only a minority has put in place a convincing strategy or set concrete carbon reduction targets.
Pictet and Ethos today present the Carbon Disclosure Project's (CDP) second report on Switzerland. This year, the questionnaire was sent to Switzerland's 100 largest listed companies, twice as many as the previous year. The objective was to learn more about the extent to which companies have drawn up and genuinely implemented a strategy to manage their greenhouse gas emissions.
The Fifty Largest Companies (the First Half Surveyed): Satisfactory Participation, but Few Concrete Targets
For the fifty largest Swiss listed companies, the results of the second CDP survey, with a 70 per cent response rate, indicate sustained interest in the climate change issue. A closer look nevertheless reveals that not all companies are fully aware of all the risks and opportunities the issue entails. Twenty-three have a concrete plan to reduce greenhouse gas emissions, but only four have set absolute targets. And although five have set targets related to output and number of employees, far too few have identified their exposure to climate-related risks in a systematic manner, taking into account the entire value chain, i.e. from the sourcing with suppliers to the impact on climate of the production process and finally of the products and services they sell. In this area, institutional investors therefore hope to see further progress enabling them to better assess corporate carbon strategies.
The Next Fifty Companies (the Second Half Surveyed): Challenge Remains
Of the fifty companies surveyed for the first time, 46 per cent completed the questionnaire, a relatively modest response rate that cannot be entirely attributed to limited interest in the subject. Rather, many small companies are simply not able to provide the information requested, as they often do not have the structures and processes in place that are needed to incorporate climate change into their business strategy.
Responsibility of the Financial Sector
The heightened corporate awareness overall allows investors to optimise the investment process in terms of climate risks. Indeed, in addition to their de facto responsibility as financial backers, institutional investors are concerned by the impact of climate change on the financial evaluation of companies. It is therefore in their interests to factor the opportunities and risk into their investment decisions. The publication of this report is also a step towards greater transparency: not only do investors have access to relevant climate data, but these also enhance the understanding of society as a whole of the problems companies face with regard to climate change.
