Corporate climate risk management and the implementation of climate projects by the world's largest emitters

Abstract

Abstract The industries are one of the major factors leading the impacts of global climate change. Their participation in the global process of climate mitigation and adaptation is fundamental, since these large greenhouse gas emitters and their investors could take action to change the path towards a low carbon economy. Nevertheless, surprisingly, no study has found in the literature on climate risk management by the world's largest emitters. This paper presents the context in which companies are asked to disclose to interested parties and potential investors not only shallow questions about sustainability, but also information on climate change and climate risks. Therefore, the main objective is, among others, to investigate the relationship between emission intensity and the number of climate projects implemented. The paper focused on the world's 100 largest GHG emitters, identified by a Carbon Disclosure Project (CDP) classification list. It was developed an analysis based on their CDP reports for the period 2015 to 2017. The results showed that the level of disclosure of climate risks is low, with an average score of only 31% in 100. By 2017, 11.1% had not implemented any mitigation project to reduce the impact on climate change. The sample companies realize that their business is more severely threatened by climate regulations than the market and physical risks. The survey found that companies are investing more in energy efficiency as an effective way to reduce emissions. Evidence shows that the number of projects implemented is not related to the intensity of emissions, size, power of the shareholders and the country of origin of the company, but its profitability.