'CDP Japan 500 Climate Change Report 2013' Indicates Improved Corporate Disclosure, Performance

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CDP released its report on the climate change activities of 500 major Japanese companies, the CDP Japan 500 Climate Change Report 2013, on November 6, 2013. According to the report, the average disclosure score (the adequacy of a company's climate-related disclosure) is 73 points, an increase of 6 points from the previous year, and the largest number of companies achieved the performance grade of "B" for contribution to climate change mitigation and adaptation, an improvement from "C" in 2012. The CDP is an international non-profit organization that aims to disclose, manage, and share environmental information on companies and cities.

For emissions reduction targets, 94 percent of companies set absolute targets and/or intensity targets. Most set their target for 2020, while only eight companies set their long-term target for 2050 or beyond. Forty-two reported reduced emissions, down 13 percentage points compared to last year.

The report suggests that Japanese companies have improved their standing in both climate change disclosure and performance compared to last year. It also indicates, however, that the number of companies that sets emissions reduction targets after 2021 is small, and that there are still challenges with respect to countermeasures against climate change that are consistent with mid- to long-term business strategies. In addition, companies need to improve their disclosure of information about their sincere efforts and performance to external stakeholders.

The survey was conducted from February to September 2013. The report is based on the 206 responses received prior to the deadline out of the responses of 227 companies (response rate of 45 percent). PricewaterhouseCoopers Aarata, a member firm of PwC, conducted scoring of the responses and wrote the report.