Carbon Action
Carbon Action is an investor-led initiative to accelerate company action on carbon reduction and energy efficiency activities which deliver a satisfactory return on investment.
254 investors with US19 trillion in assets under management ask the world’s highest emitting companies to:
■Make emissions reductions (year-on-year); with
■targets publicly disclosed; and
■ROI-positive investments in projects
Some 300 companies in 17 high emitting industries received this request in 2013.
Aim and purpose
Signatory investors recognize the business benefits of target setting and investment in emissions reducing and energy efficiency projects. Carbon Action helps investors advance understanding of portfolio company carbon management and energy efficiency initiatives and to improve risk management in areas including regulation, operations, fiduciary duty and reputation. It helps companies generate positive returns through carbon reducing and energy efficiency projects and so build long term sustainable businesses.
Lower emissions, higher ROI: the rewards of low carbon investment
■Carbon reduction activities are generating satisfactory positive return on investment, delivering average ROI of 33% or a payback in 3 years.
■Behavioral change; energy efficiency and fugitive emissions reductions generate some of the highest reductions and ROIs
■High emitting companies that set absolute emissions reduction targets achieved reductions double the rate of those without targets with 10% higher firm-wide profitability
■Companies reported reductions of 497 million tonnes1 of CO2 e as a result of emission reduction activities totaling US$ 11 billion in 2012