European Property Sustainability Matters European Property ...

King Sturge: European Property Sustainability Matters
Carbon Disclosure Project
Another initiative, carried out in 2005 by 155
global institutional investors, sought to assess the
responses by large corporations to climate change.
The investors, who were signatories to the Carbon
Disclosure Project (CDP) and represent over $21
trillion in assets, requested information on initiatives
by organisations in the Financial Times Global 500
list of companies.
The ensuing report comments that:
“This interest from the investment community,
coupled with a record high (71%) disclosure
rate to the CDP 2005 information request
sent to them on 1 February 2005, points to a
continued elevation of climate change as a
critical shareholder value issue in the minds of
investors and corporations alike.
A sea-change in corporate positioning on climate
change is discernible over the past 18 months.
Perceptions are changing most noticeably
among US-based companies, many of which
have publicly asked for greater regulatory
certainty on greenhouse gas emissions (GHGs).
Companies such as Duke Energy, GE and JP
Morgan Chase have made notable strategic
leaps.
The cost of carbon may erode annual net
income by as much as 45%, depending
on carbon prices, compliance periods
and individual company circumstances.
Conversely, carbon costs will have a net
positive effect on firms with a surplus of
allowances”.
The property-related consequences of the
emergence of carbon footprinting and public
disclosure of energy efficiency measures within
organisations – whether they are investors or
occupiers – could be significant and is consistent
with a general move to more openness in this area.
This is discussed further under Corporate Social
Responsibility (see page 39).
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