MANY Australian companies might moan about the carbon price but there is little sign the tax is prompting extra efforts to cut emissions or disclose more of what they are doing.
Compilers of the annual Carbon Disclosure Project had expected July's start of the carbon tax to spur an increased response from the top 200 companies on the stock exchange. Instead, fewer than half participated, a level little changed from a year earlier.
The response rate to the seventh annual CDP survey was higher among the top 100 stocks, at 71 per cent, though slightly down on the previous two years.
"We'd expect, as the impact of the carbon price and climate change become more material, the response rate will increase over time," said James Day, director of the CDP for Australia and New Zealand.
Financial companies, such as Insurance Australia Group and National Australia Bank, were among those placing the greatest priority on dealing with the challenges of climate change, possibly out of concerns "over reputation and customer expectations".
Among the largest companies declining to respond to the survey were rail freight operator QR National, Westfield Retail, Lend Lease and notably, given its market oversight role the ASX.
Bank of Queensland, based in a state that was hit by significant flooding three years in a row, was among seven companies that responded to CDP 2011 but declined to participate this year.
The report's compilers, which include Deloitte Touche Tohmatsu, said the findings suggested companies were becoming "increasingly comfortable" with a price on carbon.
Some 69 per cent of ASX 200 and the top 50 listed companies in New Zealand identified a risk from the carbon price to their business, down from 81 per cent in 2011. Just three respondents David Jones, Origin Energy and Arrium (formerly OneSteel) consider the tax to be a high risk, unchanged from a year earlier.
Airlines Qantas and Virgin Australia were among companies worried that a carbon price might turn consumers off their services. Both, though, won praise for their thorough disclosure.
Just 52 per cent of ASX 200 respondents reported absolute and/or emission-intensity reduction targets, although that was up from 40 per cent two years earlier.
Companies in the highest-emitting sectors were among the least active in disclosing such goals, with just 20 per cent of utilities, a third of material stocks and 40 per cent in the energy sector doing so.
"We would hope to see that companies, particularly those in directly affected sectors, are moving to set real targets," said Shauna Coffey, director of sustainability and climate change at Deloitte.
Taking into account non-respondents, the survey estimates 92 per cent of listed utilities do not have targets to cut greenhouse gases, with energy and material companies only marginally better.
Frequently Asked Questions about this Article…
How many ASX 200 companies responded to the Carbon Disclosure Project (CDP) survey about the carbon tax?
Fewer than half of the ASX 200 companies participated in the CDP survey after the carbon tax started in July. Response was higher among the top 100 stocks at about 71%, but overall participation in the top 200 remained below 50% and little changed from a year earlier.
Which large Australian companies declined to take part in the CDP emissions survey?
Among the biggest companies that declined to respond were rail freight operator QR National, Westfield Retail, Lend Lease and, notably, the ASX. Bank of Queensland had responded in 2011 but chose not to participate in the most recent survey.
Which companies placed the greatest priority on climate change and carbon risk in the CDP survey?
Financial firms such as Insurance Australia Group and National Australia Bank were among those placing the greatest priority on addressing climate change and carbon risk, likely motivated by concerns about reputation and customer expectations.
How many companies see the carbon price as a business risk, and which saw it as a high risk?
About 69% of ASX 200 and the top 50 New Zealand listed companies identified a risk from the carbon price, down from 81% in 2011. Only three respondents — David Jones, Origin Energy and Arrium (formerly OneSteel) — considered the carbon tax to be a high risk, unchanged from the prior year.
What proportion of ASX 200 companies reported emissions reduction targets?
Fifty-two percent of ASX 200 respondents reported absolute and/or emissions‑intensity reduction targets, up from 40% two years earlier. However, companies in the highest‑emitting sectors reported targets far less often.
Which sectors were least active in disclosing emissions reduction goals?
The highest-emitting sectors were among the least active: only about 20% of utilities, roughly a third of material stocks and around 40% of energy companies disclosed emissions reduction goals. When accounting for non-respondents, the survey estimates about 92% of listed utilities do not have targets to cut greenhouse gases.
How did airlines like Qantas and Virgin Australia perform on carbon disclosure and concern?
Qantas and Virgin Australia were among companies that expressed concern that a carbon price might deter consumers from using their services. Both carriers received praise in the survey for thorough disclosure of their climate-related information.
What does low CDP participation and limited disclosure mean for everyday investors looking at Australian companies?
Low participation and patchy disclosure mean investors may have less public information about company emissions, carbon exposure and concrete reduction targets. The CDP findings suggest many companies are still becoming comfortable with a price on carbon, so investors seeking climate-related risk details may need to look beyond voluntary CDP responses or request more disclosure directly from companies.
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