The Carbon Disclosure Project (CDP) has released its 2011 Australia-New Zealand report, the sixth such annual local effort. This year exactly half the companies in the ASX 200 companies responded, but 73 of these were from the ASX 100 – only 27 from the bottom 100 made the effort. In New Zealand 42 of the NZX 50 responded.
Some highlights from this year’s report:
- The response rate in ANZ is much lower than the Global 500 response rate of 81%.
- Total Scope 1 (direct emissions) carbon emissions (CO2e) from reporting companies in 2010 were 114 Mt, down from 140 Mt in 2009. But the reduction does not mean ANZ companies are emitting less – most of the reduction is because large emitter Bluescope Steel reported in 2009 but not in 2010.
- Nearly half the Scope 1 emissions (47 Mt) are from just two companies – BHP Billiton and Rio Tinto.
- Scope 2 emissions (indirect emissions – almost all is electricity usage) nearly doubled from 2009 to 2010, from 70 Mt to 128 Mt.
- Only one third (36%) of respondents have had their emissions independently verified (the CDP relies on self-reporting).
- Only 4% of reporting companies said that carbon pricing is a high impact risk. “The carbon pricing results contrast sharply with media statements made by a number of companies and industry groups about the business impacts of carbon pricing.”
The report says there is evidence of a two speed business response to climate change in Australia and New Zealand, with the financial sector improving and other sectors mostly lagging.
Early this year the CDP established an office in Australia (in Sydney) to manage its Australasian programs. These include encouraging more companies to report, and expanding its consultancy programs, in conjunction with Deloitte Touche Tohmatsu.
The results are consistent with the findings of Connection Research’s report Australian Carbon Ratings, published in August 2011 in conjunction with SuperRatings. That report looked at the carbon emissions of the ASAX 100, using some data from the CDP and modelled emissions of non-reporting companies, comparing the impact of a carbon price to companies’ profitability. Total carbon pricing liability will be less than 3% of company profits – before any compensation.
This year’s Australia New Zealand CDP results show that, with few exceptions, there is still comparatively little activity from many Australia companies when it comes to emissions reduction or preparation for the effects of climate change. But then, that can be said of the world as a whole. There is lip service, but absolutely no sense of urgency.
