Potential investors motivating corporate GHG reporting
The quality of corporate greenhouse gas (GHG) emissions data is improving because increasingly stakeholders are looking to invest in companies who are accountable and transparent on environmental issues.
Companies are increasingly being challenged to demonstrate how they are responding to the financial risks posed by climate change, with many stepping up to the challenge.
Topping the recent CDP FTSE 350 report, Diageo's head of environment Michael Alexander told edie that there is an expectation that leading companies will be proactive in their disclosure of their carbon emissions.
"Because of this we take note of that and adhere to it and if our disclosure is to reflect our performance then we need to continue to deliver on that," he added.
The financial crisis has left finances constrained and the private sector is seeing lower levels of liquidity. Therefore, competition for investment has intensified and companies are now listening to the calls of potential stakeholders for complete transparency.
Policy and practice lead at IEMA Nick Blyth: "I think it's fair to say that the transparency angle is important for many sectors and many companies will have corporate reputational issues and concerns.
"The idea of using reporting in a very public way to actually communicate how a company is addressing this area is really important," he added.
For more on GHG reporting read 'The naked truth: building transparency for stakeholders'.