Oakland, California – Companies around the world are struggling to make progress on climate change, resource efficiency and natural capital dependency, according to the 2014 State of Green Business report published by GreenBiz Group in partnership with Trucost plc.
The seventh annual edition of the report, which measures the global progress of large, publicly traded companies in addressing a myriad of environmental challenges, reveals little meaningful progress across most metrics, including greenhouse gas emissions, water use, waste disposal and other pollutant impacts.
“While more and more companies are undertaking a growing number of initiatives to reduce their environmental impacts, there’s very little progress to show for it. Company initiatives are not having an impact at the scale needed to address such challenges as climate change and the availability of water and natural resources,” said Joel Makower, GreenBiz Group Executive Editor and the report’s principal author.
“The environmental impacts of business – air pollution, biodiversity loss, ecosystem degradation and water scarcity – are threatening the ability of our finite stock of natural capital to deliver sustainable growth,” said Richard Mattison, CEO of Trucost. “The challenge for business is to identify growth models that result in reduced environmental impact.”
The 2014 report includes the launch of the Natural Capital Leaders Index, a new methodology for identifying companies that are growing their revenue while reducing their environmental impacts. The 2014 Index found 34 companies from 10 countries that met Trucost’s criteria, which include increasing revenue between 2008 and 2012, disclosure of greenhouse gas emissions, and a decrease in environmental impacts during that same period.
Among the 34 “decoupling leaders” are Carnival Corp., CSX, Intel, Kimberly-Clark, National Australia Bank, Pearson, Tata Power and Verizon.
The Index further identifies US and Global “efficiency leaders” that use the least natural capital to generate revenue compared to sector peers – the more traditional sustainability leaders – which include Adobe Systems, AMEC, BMW, Ford, Manpower, McGraw Hill Financial, Pepco Holdings and Sprint Corp.
The report also names the 10 sustainable business trends for 2014. Among them are the growth of collaboration among big corporations to solve mutual sustainability challenges, the growth of chemical transparency for consumer products, the emergence of “shadow pricing” as a means for companies to assess their environmental risks and net-positive buildings.
The metrics from the report were drawn from Trucost’s assessment of 4,600 of the world’s largest companies representing 93% of global markets by market capitalization.
The State of Green Business report is the centre-piece of the ongoing GreenBiz Forum (February 18-20), taking place in Phoenix, Arizona, where speakers will address many of these trends and metrics.
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Source: GreenBiz Group and Trucost.
About Greenbiz Group
GreenBiz Group’s mission is to define and accelerate the business of sustainability. It does this through a wide range of products and services, including its acclaimed website GreenBiz.com and daily e-newsletter GreenBuzz; webcasts on topics of importance to sustainability and energy executives; research reports, such as the annual State of Green Business; the GreenBiz Executive Network, a membership-based, peer-to-peer learning forum for sustainability executives; and conferences such as the GreenBiz Forum and VERGE.
About Trucost plc
Trucost has been helping companies, investors, governments, academics and thought-leaders to understand the economic consequences of natural capital dependency for over 12 years. Its world-leading data and insight enables our clients to identify natural capital dependency across companies, products, supply chains and investments; manage risk from volatile commodity prices and increasing environmental costs; and ultimately build more sustainable business models and brands. For more information, visit www.trucost.com.