Executive Briefings

Global 500 Companies Report Finding Business Opportunities Resulting From Climate Change

As corporations look to cut their environmental costs, evaluating total cost of ownership - or the total direct and indirect costs of owning a product or service - may provide a way to achieve greater environmental accountability, better resource management and financial savings, according to a report by the Carbon Disclosure Project.

Global 500 Companies Report Finding Business Opportunities Resulting From Climate Change

The report focuses on Global 500 firms. "We looked at whether they were seeing opportunities through climate change, whether they were engaging their suppliers - not just where the emissions are but where the solutions are," said Dexter Galvin, CDP's head of supply chain.

It found 55 percent of responding Global 500 companies report finding business opportunities resulting from modified consumer behavior due to climate change. And 69 percent report increased demand for lower-carbon products and services in 2016.

For example, in its 2015 disclosure to CDP, industrial gas maker Praxair said it is investing significant resources into meeting customer demand for products with a lower carbon footprint. Its 2015 eco-portfolio accounted for 32 percent of company sales, or more than $3bn in revenue.

Alcoa is another company reporting growing customer demand — and subsequent revenue gains — from climate-related goods and services.

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The report focuses on Global 500 firms. "We looked at whether they were seeing opportunities through climate change, whether they were engaging their suppliers - not just where the emissions are but where the solutions are," said Dexter Galvin, CDP's head of supply chain.

It found 55 percent of responding Global 500 companies report finding business opportunities resulting from modified consumer behavior due to climate change. And 69 percent report increased demand for lower-carbon products and services in 2016.

For example, in its 2015 disclosure to CDP, industrial gas maker Praxair said it is investing significant resources into meeting customer demand for products with a lower carbon footprint. Its 2015 eco-portfolio accounted for 32 percent of company sales, or more than $3bn in revenue.

Alcoa is another company reporting growing customer demand — and subsequent revenue gains — from climate-related goods and services.

Read Full Article

Global 500 Companies Report Finding Business Opportunities Resulting From Climate Change