Bank achieves top ranking in global climate change index

Westpac has announced it is the only bank in the world, and one of just four companies in the Global FT500 list, to achieve a 100-point, AAA rating in the 2007 Climate Disclosure Leadership Index (CDLI).

The CDLI is compiled by Innovest Strategic Value Advisors and coordinated by the Carbon Disclosure Project (CDP). On behalf of institutional investors with a combined $41 trillion of assets under management, the CDP gathers information on the business risks and opportunities presented by climate change and greenhouse gas emissions from more than 2400 of the world’s largest companies.

Since 1996, Westpac has reduced total greenhouse gas emissions by over 45%.

Noel Purcell, Westpac’s general manager stakeholder communications, welcomed the ranking adding that Westpac believed climate change was a fundamental economic issue which needed to be addressed both in terms of risk and opportunity.

“Climate change and carbon risk is an accepted reality, and business is well aware that the next 20 years will constitute a period of transition which will impact individuals, communities and economies everywhere,” Dr Purcell said.

“There are substantial emerging commercial opportunities, and how businesses manage the risks and capitalise on new products and markets will determine the success of their long-term profitability.”

Of the 68 FT500 companies featured in the CDLI, only Westpac, Rio Tinto, Hewlett-Packard and Iberdrola achieved top ranking. Westpac also led the pack of 15 global banks included in the index.

All companies in the FT500 sample were assessed against their peers to provide an evaluation for investors through the CDLI. The aim of the evaluation is to show which companies have developed the most comprehensive climate change disclosure practices.

The index ranks companies on a 100-point scale and all companies which achieved a score of 85 or over are featured in the CDLI.

Country- and sector-weighted ratings showing the net carbon exposure of a firm — ranging from CCC (worst in class) through AAA (best in class) — were also introduced in this year’s index to demonstrate the relationship between leadership in carbon disclosure and leadership in carbon performance.

Westpac was also named by the local version of the index, the Goldman Sachs JBWere CDLI, in the top 25 of 141 Australia and New Zealand companies that took part in the 2007 Carbon Disclosure Project, and one of only 15 companies selected for the second year in a row.