Only 15% of publicly traded electric utilities surveyed worldwide set and disclose targets for reducing greenhouse gas emissions, and only 46% disclose their power-generation fuel mix, critical factors for investors to determine the extent a company may be exposed to climate regulation and competitive pressure, according to a CalSTRS-sponsored Electric Utilities Report of the Carbon Disclosure Project.
The report received responses from 110 of 249 companies contacted. RiskMetrics Group was commissioned by the $111.6 billion California State Teachers' Retirement System, Sacramento, and CDP to analyze responses and write the 60-page report.
Carbon Disclosure Project data “is essential to enhance shareholder value through our corporate governance engagement efforts,” CalSTRS CEO Jack Ehnes said in the report.
“As the most carbon-intensive sector, electric utilities must be at the forefront of reporting and mitigation efforts to avoid exposure to potential regulation and litigation costs,” Mr. Ehnes said in the report.
Among the findings, Endesa, Iberdrola and AGL Energy scored the highest among the responding publicly traded electric utilities worldwide for providing company-specific climate-change risks, opportunities and strategies for integrating the issue into their core business, according to the report. Out of a possible 100 points, they scored 85, 82 and 81, respectively.
The report is available for free here. — Barry B. Burr
