Firms that act on cutting their carbon emissions perform better on the stock market, according to a new report. PricewaterhouseCooper’s analysis of the world’s largest corporations found a link between higher stock market performance over time and representation on the Carbon Disclosure Project’s low carbon business indexes.
The Carbon Disclosure Project works on energy policy with companies and governments across the world and is a registered charity. The report, Accelerating low carbon growth, looked at information from nearly 400 of the world’s largest companies.
Paul Simpson, CEO of the Carbon Disclosure Project, said: “The improved financial performance of companies with high carbon performance is a clear indicator that it makes good business sense to manage and reduce carbon emissions.
“Companies yet to take action on climate change will have to work hard to remain competitive as we head towards an increasingly resourced constrained, low carbon economy.”
The report also showed that for the first time since the survey began a decade ago, the majority of businesses (68%) put climate change actions at the heart of their business strategy.
Other carbon disclosure stories: