Ford and LG Rank Among Firms Most Prepared for Climate Change
(Bloomberg) -- Ford Motor Co., LG Corp. and Pernod Ricard SA joined the ranks of the top global companies that are best prepared for the effects of climate change.
They won the “A” grade last year for how aggressive they are setting and meeting carbon goals, as well as how forthcoming they are about their efforts, according to an analysis by nonprofit CDP. For instance, all three companies have made climate an issue with board-level oversight. Of 8,400 companies graded, they joined the 2% including Alphabet Inc., Walmart Inc. and Citigroup Inc. that have dominated the ranking, CDP said in a statement on Monday.
CDP, formerly known as the Carbon Disclosure Project, encourages companies, cities and states to disclose and manage their environmental impacts. The data is used by shareholders and other stakeholders to assess company progress.
“We need a stronger, unified voice from global business to commit to managing climate action,” Bruno Sarda, president of CDP North America, said by phone.
CDP grades companies from A to D based on their disclosures of climate data and awareness of global warming risks. It gives kudos to companies that set reduction targets for emissions, shift to using renewable energy and encourage suppliers to reduce their own carbon footprints.
Just last week, BlackRock Inc. Chief Larry Fink unveiled a set of climate-related changes to its investment processes, saying his firm will ditch investments with high sustainability-related risk. And Microsoft Corp. announced plans to invest $1 billion to back companies and organizations working on technologies to remove or reduce carbon from the earth’s atmosphere.
About 180 companies made CDP’s A-list, with 85 hailing from Europe, 51 from Asia and 36 from North America, according to the statement. Japanese companies dominated the top tier in 2019 for the first time, with 38 companies. The U.S. followed with 35 firms and France with 22.
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