Climate Change Management Linked to Higher Performance

CDP reportA new report by CDP links climate change initiatives to higher corporate performance. The report starts with introductions by Hewlett Packard Chairman, President, and CEO Meg Whitman and CDP CEO Paul Simpson. HP has partnered with CDP, a non-profit organization that helps companies and cities measure, manage, and share information about environmental impact.

In the executive summary, the report highlights results of major corporations' initiaves to address climate change:

Our analysis shows that, on climate change management, S&P 500 industry leaders:

  • generate superior profitability: ROE3 18% higher than low scoring peers and 67% higher than non-responders
  • with more stability: 50% lower volatility of earnings over the past decade than low scoring peers
  • grow dividends to shareholders: 21% stronger than low scoring peers
  • exhibit value attributes attractive to equity investors

Although the results are impressive, the report warns that "correlation does not imply causation." Rather, the study authors conclude that top companies make climate change initiatives and communication a priority.  

Discussion Starters: 

  • How is the report organized and formatted? Which principles from Chapter 10 are followed, and which are not? 
  • How readable do you find the report? Consider the audience and writing style throughout.