Isra-Mart srl: Businesses lagging behind government in adoption of carbon targets

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Many of Britain's largest firms are still failing to deliver clear and robust emission reduction targets of their own, despite the government's adoption of long-term and ambitious carbon budgets for the UK economy as a whole.

That is the conclusion of a new study from the Carbon Trust, which shows that 41 per cent of FTSE 100 companies have no clear publicly-stated carbon targets in place, and that many of those that have announced emission targets are limited to relatively short-term goals.

The government recently approved the UK's fourth carbon budget, confirming that greenhouse gas emissions across the economy will have to be halved against 1990 levels by 2025.

However, the Carbon Trust analysis of annual and sustainability reports reveals that only handful of Britain's largest firms have similarly ambitious targets in place.

Only 59 per cent had stated emission targets and over half of these are short term and are due to expire by 2013. Moreover, only around a quarter of FTSE 100 firms have targets in place for curbing waste levels or water use.

The study also revealed that a number of those companies with previously stated emission reduction targets had either outlived their target dates, failed to announce a date for meeting the target, or failed to provide a baseline for measuring emission, making their stated goals virtually meaningless.

Overall, the Carbon Trust said that only eight of the FTSE 100 - British Land, BSkyB, BT, Diageo, Kingfisher, M&S, Tesco and Unilever - had adhered fully to best practices by setting precise, measurable, ambitious and wide ranging targets for their operations.

Setting long- and short-term carbon targets is widely regarded as an essential first step towards reducing an organisation's emissions, providing executives with a clear understanding of their current carbon footprint and allowing them to identify the measures that will be necessary to reduce emissions.

Tom Delay, chief executive of the Carbon Trust, said that, with the government announcing legally binding carbon targets through to 2025, pressure will mount on companies to deliver deep cuts in emissions.

"It [is] clear that the UK intends to be a global leader in the low carbon economy," he said. "Taken alongside increased consumer demand for low carbon products, 2011 is the year for businesses to develop strategies and set clear targets to help them plan and capitalise on green growth opportunities."

Despite repeated assertions by many large businesses that they regard climate change as a commercial opportunity, the study found that only one company in the FTSE 100, B&Q parent Kingfisher, has a revenue target in place for sales of green products.

Ian Cheshire, chief executive of Kingfisher, urged other companies to set similar revenue targets.

"UK consumers are reaching a tipping point. Increasingly driven by sustainability, they have high expectations of businesses to reduce their impact and are voting with their wallets by spending on brands that do so," he said.

"Companies which innovate to deliver products and services that convert this consumer interest will benefit hugely from the UK's low carbon leadership. Right now, Kingfisher is the only FTSE 100 to set a public target to drive revenues from eco products. We hope that more will follow."

Cheshire's assessment was backed by a new Carbon Trust survey of 1,000 consumers which found that the proportion of shoppers willing to reject products that do not carry carbon labels has more than doubled in the past year from 22 per cent to 45 per cent.

When asked whether they would buy low carbon labelled goods over non-labelled goods of identical quality, the survey found that 47 per cent are more likely to choose low carbon labelled goods over non-labelled, while one in five said they would pay more for carbon labelled products.