Sprint, Sempra, and Entergy are just a few of the companies highlighted by the CDP (formerly the Carbon Disclosure Project) in this year’s S&P 500 Climate Change Report 2013, which tracks how America’s largest listed companies are responding to climate change.
In 2013, more than 5,000 companies worldwide were asked to report on climate change through the CDP and its signatories, which represent $87 trillion, or one-third of the world's invested capital. The 2013 CDP S&P climate change report presents the progress achieved by 334 companies in reducing emissions, responding to climate-related risk and opportunities, and mobilizing influence to manage climate change.
For the third consecutive year, Sempra Energy has been named to the CDP's prestigious Climate Disclosure Leadership Index, a tool used by investors to assess companies' disclosure of management practices related to greenhouse-gas emissions.
Only three U.S. utility companies are ranked on the 2013 Climate Disclosure Leadership Index.
Sempra Energy's four principal subsidiaries are San Diego Gas & Electric, Southern California Gas Co., Sempra U.S. Gas & Power and Sempra International.
"We appreciate this recognition of our sustainability efforts by the CDP," said Randall Clark, vice president of corporate responsibility and corporate secretary for Sempra Energy. "Our low-carbon business model is focused on natural gas, energy efficiency and renewable power."
For the second year in a row, Sprint is recognized in the report. Sprint was the only telecommunications company named to CDP’s S&P 500 Climate Performance Leadership Index (CPLI), which highlights companies that demonstrate strategies committed to improving their impact on the environment.
CDP also gave Sprint the highest score in the Telecommunications Services sector for Carbon Disclosure. Sprint was the only telecommunications company listed on both the CPLI and Carbon Disclosure Leadership Index (CDLI).
“Our commitments to reduce our carbon footprint and increase our use of renewable energy are not only good for the environment, but good business," said Amy Hargroves, Sprint director of corporate responsibility and sustainability. "Our carbon reduction efforts alone will save Sprint an estimated $80 million a year by 2017."
Sprint has already achieved 94 percent of its industry-leading goal to reduce emissions by 20 percent by 2017. In 2012, Sprint reduced its overall emissions by 10.05 percent over the previous year and decreased carbon intensity by 37.3 percent — putting the carrier well ahead of schedule to reach its 2017 emission-reduction goals.
Understanding the impact of climate change and taking action to manage related risks have earned Entergy Corporation recognition by CDP S&P 500 Climate Performance Leadership Index. Entergy was also named to the CDP S&P 500 Climate Disclosure Leadership Index. This is the ninth time in 10 years Entergy has been included on the disclosure index.
Entergy’s actions to address climate change are featured in a special section in CDP’s 2013 S&P 500 climate change report, “Investment, transformation and leadership.”
“Entergy has responded to the CDP questionnaire every year since its inception,” said Rod West, Entergy’s executive vice president and chief administrative officer. “This process is extremely valuable to us as it requires us to review our strategy, assess our risks and measure our progress managing those risks on an annual basis. The program provides us a benchmark on how well we are doing and helps us prepare for operating in a carbon-constrained world.”
Additional, overall findings from the report include:
- U.S. companies are investing more than 4 percent of annual capital expenditures in emissions reductions.
- Greenhouse gas emissions dropped 6.1 percent in 2012.
- Companies are realizing savings by investing in emissions reductions, including product design innovations ($1.2 billion), energy efficiency processes ($991 million) and changes to transportation fleet and use ($709 million).
“The companies featured in this report are taking the kinds of steps the president outlined in his climate plan, showing that environmental protection and economic growth are not at odds," stated Heather Zichal, deputy assistant to President Obama for Energy and Climate, in the report. "What’s more, the responding S&P 500 companies include some of the most innovative businesses in the U.S., and represent about 30% of our total national emissions."