Brussels, 31/03/2016 (Agence Europe) - European companies consider climate change as both a risk and an opportunity, according to a new report by CDP driving sustainable economies, a non-profit-making organisation that runs the world's biggest environmental database of companies.
The report, “European Corporate Strategies on Climate Change, Mitigation and Adaptation”, written in cooperation with ECOFYS, was published on 22 March, exactly a month before the signing of the Paris Agreement at the United Nations headquarters (see EUROPE 11452).
The study, using data provided by European companies, says that systems for capping emissions, and emissions trading systems such as ETS, along with carbon taxes are viewed as being the greatest risks, whereas international agreements, regulations and product efficiency standards are viewed as the greatest opportunities. Taxes and regulations on fuel and energy are seen as both a high risk factor and great opportunities.
This tends to show that regulations have contributed and have the potential to contribute to encouraging companies to move towards a low-carbon economy, says CDP. Lack of regulation or uncertainty about new regulations is seen solely as a risk.
A full 99% of European companies have high-ranking managers dealing with adjusting to climate change, a phenomenon seen as key question for company stability.
The study reveals that: - European companies have committed to economic models that are compatible with zero deforestation, but a number of them do not have robust plans for getting their supply chain to make this change; - 75% of European companies have pledged to reduce or prevent an increase in deforestation and 96% consider that sustainable production or sustainable supply of endangered forestry products provides an opportunity, in other words nearly 10% more than the world average; - European companies largely underestimate the economic value of water and therefore do not attach enough strategic importance to water management: while 72% of companies see opportunities relating to water, only 18% publicly commit to improving the way they treat water; - to an extent, suppliers recognise the existence of the climate risks they are facing, but their level of awareness and action could provide insufficient to deal with the scale of the risks and ensure the sustainability of supply chains; - a large majority of the cities which have provided CDP with information (71% of European cities) are exposed to high climate risk, and more than half of them must already deal with the negative impact of climate change, while 59% of European cities say they use clean energy sources. (Original version in French by Aminata Niang)