04 Mar 2010 09:03:06
Companies should prepare for tougher carbon reporting regime
A new survey from Standard & Poor's has found that over half of companies questioned are not including carbon reporting in their financial calculations.
Only 40 percent of those asked were incorporating reports and carbon exposure risks into their funding decisions and statements but a similar percentage was failing to factor emissions into their finances.
Analyst Michael Wilkins stressed that most companies would have to start including carbon risk assessments into corporate calculations, as climate change legislation for business is expected to become much tougher over the next five to six years coupled with more intense activity in carbon markets.
On the findings, Mr Wilkins said: "European companies are looking to leverage the most cost-effective solutions in the current economic downturn, and carbon management is starting to play a bigger part in this strategy.
"By implementing a carbon management strategy now, European companies may be able to generate an opportunity for sustainable competitive advantage and potentially bolster their creditworthiness," he added.http://tinyurl.com/yfsty2h