High emissions, passive reporting

28.10.2009

Among the Norwegian listed companies that did not respond to this year’s CDP request, nine companies have little or passive reporting, although they have relatively high emissions. These findings are presented in an analysis of climate reporting from KLP.

The purpose of KLP’s report is to enhance the awareness of the carbon emission issue among Norwegian companies, and share industries’ good practices and experiences.

- We believe that measuring and reporting are crucial for actually reducing emissions, which in turn will reduce the climate risk in KLP’s portfolios, says Jeanett Bergan, Head of Responsible Investments in KLP Kapitalforvaltning.

As the Norwegian economy is carbon intensive, financial measures would have a significant impact on the Norwegian economy.

Risks recognized
The result shows that despite of the relatively low response rate of CDP 2009, the majority of Norwegian companies have recognized the risks and opportunities presented by climate change. According to the data, most companies’ reporting level is proportional to their emissions levels.

The analysis indicates a varying conduct among the companies which did not respond to the CDP request or were not asked to. It varied from proactive engagement in carbon reduction and communication, to passive reporting of an environment policy, to no action or reporting. The analysis includes public information, such as websites, annual reports, Board of Directors’ reports and corporate responsibility or sustainability reports.

The non-responding companies and the companies not requested are categorized into three categories according to reporting level: good reporting (companies report emissions related policies and/or proactively commercialize environmental opportunities), medium (companies have environment related policies, but no emissions related policy publicly available), and less reporting (limited or none public reporting).

By comparing these results with estimated emissions, KLP has identified nine Norwegian companies that have relatively high emissions and a reporting level of medium or less.

- KLP will seek to influence the companies that we have identified through active ownership. We hope to encourage these companies to improved reporting and thus, to improved management of the climate risk, says Jeanett Bergan.