Carbon Disclosure Project Highlights Climate Risk in Launch at Merrill Lynch

In a stroke of symbolic irony, the global launch of the 2008 Carbon Disclosure Project (CDP) took place at the offices of Merrill Lynch, the company that folded into Bank of America last week for mismanaging its subprime and credit risks. What better reminder of the potential stakes of climate risk? Interestingly, Merrill earned top ranking of financial institutions in the CDP Carbon Disclosure Leadership Index (CDLI), which singles out the top 67 climate risk reporters amongst the FTSE Global 500 companies.

Bayer topped the CDLI in the chemicals and pharmaceuticals category, representing its fourth consecutive year listed on the Index. Other companies making it into the Index include Johnson Controls and The Hartford.

Accompanying the CDLI are reports on carbon disclosure amongst the Global 500 as well as the S&P 500, all prepared by PricewaterhouseCoopers (PwC). The report finds almost three-quarters (74 percent) of Global 500 companies reporting to CDP are now setting greenhouse gas (GHG) emissions reduction targets. PwC highlighted this finding by using the opportunity to announce its own reduction target of 20 percent by 2012 (compared to its 2007 emissions levels.)