Investments in carbon reduction projects generate attractive returns well in excess of capital costs, energy intensive companies have told the Carbon Disclosure Project (CDP).
The average return on investment is 33%, equivalent to a payback of just three years. Firms failing to set carbon reduction targets are missing an important opportunity to create financial value for investors, the CDP says.
The savings have been indentified by the CDP's Carbon Action programme, an initiative developed in conjunction with a group of investors including Aviva, CCLA, Robeco and Scottish Widows Investment Partnership (SWIP). It aims to encourage companies to move from disclosing carbon emissions to taking action to reduce them. The initiative is supported by 92 investors with some $10trn (£6.3trn) in assets.