Carbon counting is 'good for business'

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Companies that implement policies to reduce carbon emissions perform better on the stock market compared with those that do not, a survey suggests.

The annual Carbon Disclosure Project also found that, for the first time, the majority of the world's largest corporations incorporate climate change action in their business strategies.

United Utilities, Britain's largest listed water utility performed particularly well.

The Warrington-based company, the only FTSE 100 firm in the North West beat well-known brands such as Tesco, HSBC, BT, BSKYB and Unilever.

The report, written by PriceWaterhouse Coopers, analysed data provided by 350 of the world's biggest listed companies, and found climate change was central to the business plans of United Utilities.

Chris Matthews, Head of Sustainability at United Utilities, said: "We’re included in the Carbon Disclosure Leadership Index because we’ve demonstrated strong internal data management practices for the measurement of greenhouse gas emissions and energy use.”

Adding, "We are also giving clear consideration to the business issues related to climate change and understanding our exposure to climate-related risks and opportunities.

"Our work to reduce energy use and adapt the business’s operations to climate change is vital to our ongoing efforts to protect the business from risk and capitalise on opportunities.”

Almost 60% of reported actions to reduce emissions saw a payback of three years or less, the survey found.

Ranking companies in terms of the amount of information they disclosed and their performance in cutting carbon emissions, United Utilities beat every other water and wastewater firm in England and Wales with a score of 92%, up from 79% last year.

Financial firms Royal Bank of Scotland and Lloyds, travel firms Carnival and Tui Travel and health care companies GlaxoSmithKline and Smith & Nephew all made the top 35.

Utilities was the best performing sector in terms of climate change performance, with the energy sector performing poorly for a second year.