Businesses in the FTSE100 buy carbon offsets worth just 0.1% of their carbon emissions, according to a recent report by UK-based carbon offsetting company Carbon Retirement.
Of the 21 companies that offset their carbon emissions just six claim to be carbon neutral––a “pitifully low” proportion according to the company. But if the FTSE100 are to make “meaningful steps towards reducing their collective environmental impact”, then offsetting, as well as ambitious emission reduction strategies, “must play a more substantial role.”
Renewables most popular
Of those companies currently offsetting, household product companies Unilever and Reckitt Benckiser are the leaders among the FTSE100, although the survey noted how both could expand their use of offsetting.
Unilever has an overall carbon intensity of 2.7tCO2e/$1,000 revenue, but Ben and Jerry’s, one of its brands, has been carbon neutral since 2007. Reckitt Benckiser has an overall carbon intensity of 2.0tCO2e/$1,000 revenue. Its manufacturing processes have been carbon neutral since 2006.
Renewable energy projects were found to be the most popular source of offset credits, being purchased by 12 out of the 21 FTSE100 offsetting companies.
Double take?
Meanwhile a study by academics at US universities has suggested that the value of a company declines on average by $202,000 for every additional thousand metric tonnes of emissions it produces.
‘Voluntary Disclosures and the Firm Value Effects of Carbon Emissions’ report suggested this finding will have profound implications on regulations that require companies to report and pay for carbon emissions.
Not surprisingly the study concluded that businesses with “superior environmental performance” are more likely to voluntarily disclose their greenhouse gas emissions. Companies are also more likely to voluntarily disclose emissions if a higher proportion of industry does so too.
To view the full report click here
Source : The Informer
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