CORPORATE GOVERNANCE AND CLIMATE CHANGE

A new report issued today by Ceres analyzes climate change governance practices at 63 of the world's largest retail, pharmaceutical, technology, apparel and other consumer-facing companies.

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The report finds that select companies in various consumer and technology sectors are responding to the risks and opportunities presented by climate change, primarily by setting GHG emissions reduction targets, boosting energy efficiency efforts, expanding renewable energy purchases and integrating climate factors into product design.

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But the report found that many other companies are still largely ignoring climate change, especially at the board and CEO level. For example, only 11 of the 63 companies have their boards receive climate-specific updates from management, only seven of the CEOs among these firms have taken leadership roles on climate change initiatives and none of the companies have linked C-suite executive compensation directly to climate-related performance.

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The report concludes that more action is needed to align company strategies with GHG reductions that scientists say are needed to avoid dangerous impacts from climate change.

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In this regard, the report recommends that companies:

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* elevate climate change as a governance priority for board members and CEOs
* link the company's largest compensation packages – those of the CEO and other senior executives – to GHG reduction targets or other climate performance measures
* set company-wide energy efficiency goals and mandate energy efficiency evaluations for all major capital investments
* boost attention to supply chain management by including supply chain GHG emissions – emissions that result from raw material extraction, production, transport and packaging – in emissions inventories and setting emission standards for suppliers
* set renewable energy purchase targets
* expand programs to educate, empower and reward employees for climate-related initiatives.

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Report available here