311907 kpmg climate change attitude survey

7/31/2019 311907 KPMG Climate Change Attitude Survey

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Climate ChangeBusiness

Leaders Survey II6 months on

KPMG LLP (UK)



Climate Change Business

Leaders Survey IIThis latest survey, undertaken by YouGovStone on

behalf of the KPMG’s Carbon Advisory Group, reveals

that whilst business is recognising the increasing

importance of climate change, eight out of ten still

have no strategy in place to address the issue.

“Only seven

percent are fully

aware of what the

UK Government’s2050 target for

climate change is“

The survey, which interviewed 209 In addition to this, a considerable

senior UK business executives from the knowledge gap still remains amongst

FTSE 350 and equivalent private senior executives. Whilst 41 percent of

companies, illustrates that whilst climate respondents claim to understand the

change is still featuring on boardroom impact of carbon emission reduction

agendas; significant progress still needs targets on their organisation, only 7

to be made if UK business is to meet percent know what the UK

the challenges demanded by the recent Governments 2050 emissions

European Commission proposals, reduction target is.

the UK Climate Change bill and,

increasingly, consumers. Still a priority…

So, recognition of climate change as a

Whilst recognition of climate change as current and future business issue is

a significant business issue has high and has increased since our last

increased by a third to 85 percent, the study. Eighty five percent (May 2007:

relative importance of climate change as 52 percent) of respondents think that

a business issue has dropped (May climate change is a significant business

2007: 74 percent, December 2007: 67 issue, with 77 percent expecting its

percent), and remains bottom of the significance to increase in the future.

corporate priority list. Similarly, only 22 However, only 53 percent of

percent of respondents said that climate respondents thought that their

change was regularly discussed at board organisation should give a high level of

level in their organisation. attention to climate change.

3%

12%

How significant an issue do you believe climate

change is for business at this current time?

Very significant ■ Fairly significant ■ Fairly insignificant ■ Very insignificant ■ Source: KPMG LLP (UK)

51%

34%

© 2008 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent memberfirms affiliated with KPMG International, a Swiss cooperative.



“Businesses still

looking for clarity

around next steps

for climate

change”

Responses here reveal a split between

male and female attitudes to this issue

– while 66 percent of female

respondents thought that their

organisation should give a lot of

attention to climate change, only 50

percent of male respondents agreed.

Despite the consensus that climate

change is a significant business issue,

the level of attention given at board

level varies significantly. Ten per cent of

respondents said that climate change

is discussed at board level in every

meeting, 12 percent once a quarter

and 16 percent annually. Significantly,

13 percent of respondents’

organisations are not currently, but

they will going forward, be discussing

climate change in the boardroom.

Asked to indicate the relevant

importance of climate change as a

business issue, the following total

levels of importance were recorded:

Employee engagement

and performance 96% (100% in May)

Customer service 96% (100%)

Profitability 95% (100%)

Brand awareness 89% (88%)

Risk management 89% (96%)

Technology 88% (93%)

Marketing 88% (95%)

CSR 76% (89%)Climate change 67% (74%)

Source: KPMG LLP (UK)

Regardless of whether your organisation is currently developing carbon management strategies

or not. In your opinion when it comes to an organisation like yours developing carbon

management strategies which of the following areas pose the biggest challenge?

Developing future carbon scenarios for planning 14

Accurately measuring carbon emissions 15

Influencing partners and suppliers to adopt more carbon efficient practises 24

Understanding offsetting 4

Understanding environmental tax issues 5

Getting employee buy-in for carbon reduction strategies across the firm 25

Other (please specify) 11


… But still struggling strategy, whilst 32 percent only have a

Despite being seen as an important vague understanding. Therefore, 83

issue, organisations are still struggling percent of the organisations covered

to address climate change by this survey do not have a strategy

appropriately. Of the respondents, only to address climate change.

17 percent were confident that they

fully understand climate change and Despite the overwhelming majority of

their carbon footprint and have a clear respondents’ organisations not having

strategy in place to deal with it. Forty a strategy in place, over half (56

percent have a good understanding of percent) thought that their organisation

the issue and are developing a gave the right amount of attention to

40%

17%4%

6%1%

32%


How good is your business's understanding of

climate change?

We fully understand the issue know our

carbon footprint and have a clear

strategy ■ We have a good understanding

and are developing our strategy ■ We have a vague understanding

aware of the key issues only ■ We don’t understand the climate change

debate or how it affects our business ■ We are sceptical and don’t believe

climate change is actually happening ■ Don’t know ■




climate change. Only a third thought

that too little attention was given and a

sizable minority (10 percent) thought

too much attention was being paid to

climate change.

When asked, respondents cited

influencing partners and suppliers to

adopt more carbon efficient practices (24

percent) and getting employee buy in (25

percent) as the biggest challenges in

developing an appropriate carbon

management strategy. Gaining employee

support seems to be particularly difficult

amongst respondents in the business

services and financial services sectors

(both 34 percent).

A significant knowledge gap

Although 41 percent of the executives

questioned believe that their

organisation understands how they will

be affected by carbon emission

targets, only 7 percent are fully aware

of what the UK Government’s 2050

target for climate change is, and only

10 percent correctly selected 60

percent as London’s 2025 emissions

reduction target. The number of

respondents that did not know the

targets was 46 percent and 18 percent

respectively, suggesting that London

has had slightly more success

in educating business than

the Government.

This low level of awareness and

knowledge contrasts with the 73

percent of respondents who agree that

education and increasing awareness

amongst businesses is key in

combating climate change.

Despite the majority of respondents

not knowing Governmental targets,

Government (47 percent) and quasi-

government (48 percent) remain the

most popular trusted sources for

information on climate change for

respondents, along with NGOs

(39 percent).

30 25 20 15 10 5 0

"Our organisation understands how it will be

affected by carbon emissions targets in the UK

Government’s forthcoming climate change bill."

Strongly Agree ■ Agree ■ Neither agree nor disagree ■ Disagree ■ Strongly disagree ■ Don’t know ■ Not applicable ■ Source: KPMG LLP UK

Government responsibility…

As in our May 2007 survey,

respondents strongly believed that the

Government bears prime responsibility

for education and awareness-raising for

climate change (56 percent) and for

influencing behaviour through leading

by example (49 percent). Conversely,

business and individuals were thought

to have relatively little obligation for

both, though respondents identified

leading by example as the area where

individuals bore greatest responsibility

(23 percent).

However, responsibility for investing in

technology to reduce carbon emissions

was more evenly shared between

Government (43 percent) and business

(42 percent), reflecting the capital and

expertise that commerce is able to

bring to bear in this area.

Despite being seen to bear primary

responsibility for addressing climate

change, a majority of respondents (57

percent) felt that the Government were

failing to effectively educate

businesses and individuals on their role

in tackling climate change. In the case

of educating business, this

represented an increase of 15 percent

since our May 2007 survey.

Respondents’ scepticism towardsGovernmental activity extends to

domestic and international policy, with

under half now believing that policies

such as the Kyoto protocol and the UK

Climate Change Bill are likely to result




in businesses taking positive steps

towards tackling climate change,

compared to just over half (52%) in

May 2007.

10% 8%

15%

41%

27%

Agree

Policies such as the Kyoto protocol and the UK

Government Climate Change Bill are likely to

result in businesses taking positive steps

towards tackling climate change

Strongly agree ■ ■

Strongly disagree

Neither agree nor disagree ■Disagree ■

■ Source: KPMG LLP (UK)

… and business responses

Despite the lack of understanding, lack

of appropriate corporate action and the

assignment of responsibility to the

Government, 76 percent of

respondents still agree that business

and individuals need to invest in our

future by changing the way we work

and live now and by taking steps

towards tackling climate change.

When asked where business reviews

are currently taking place, 42 percent

of respondents mentioned operational

management, down from 55 percent in

May 2007. The proportion of

respondents mentioning strategic

development plans (42 percent) and

supply chain (33 percent) also fell, by

28 percent and 14 percent respectively.

The level of respondents whose

organisations were utilising the main

measures to tackle climate change was

again down on May 2007:

Recycling / using recycled

products 77% (92% in May 2007)

Installing / using energy

efficient appliances 67% (85%)

Educating and training

employees on environmentally

friendly business practices 53% (70%)

However, the number of respondentswhose organisations are working to

achieve carbon neutral status rose

slightly to 22 percent.

So what are the primary drivers for

those that are adopting more carbon

efficient practices? Twenty-seven

percent of respondents identified

reducing the environmental impact of

the organisation as the driver, with 16

percent citing pressure to reduce costs

and the same number identifying brand

enhancement and value.

Next steps

The results from this latest survey

show that “the majority of business

leaders still don’t treat climate change

as an economic issue that can have a

positive or negative impact on the

bottom line. Knowing your carbon

number is rapidly becoming a key

performance indicator that employees,

regulators and shareholders demand

accuracy and assurance on” (Richard

Sharman, Lead Partner, KPMG’s

Carbon Advisory Group).

KPMG’s Carbon Advisory Group is

providing insight and strategies to

help companies understand and

manage the many business implications

of climate change. Drawing upon their

experience across audit, tax and

advisory, their multi-disciplinary team is

already helping clients develop

strategies to embrace planned and likely

changes in; environmental regulation,

changes in stakeholder demands,energy efficient or renewable energy

investment and trusted carbon offset

and trading schemes.

Which of the following areas, if any, is currently the primary driver for adopting more carbon

efficient business practises within your organisation? (please choose one)

Pressure to reduce costs i.e. energy bills 16

Exploit new business opportunities 7

Reduce the environmental impact of the organisation 27

Meet regulatory pressures 10

Respond to investor demand for more 'carbon-friendly' products 2

Enhancing reputation/brand value 16

Respond to customer demand for more 'carbon-friendly' products 9

None of these we are not adopting more carbon efficient practices 7

Don’t know or other 5





kpmg.co.uk

Contact us:

Richard Sharman Rob Cormie Trevor Wiles

Lead Partner Strategic and Transactional Objectives Offsetting Investigations

+44 (0) 20 7311 8228 +44 (0) 20 7311 4606 +44 (0) 20 7311 3785

[email protected] [email protected] [email protected]

Adrian Wilcox Andrew Cox Jonathan Coltman

Carbon Audits and Accounting M&A Transaction Support Restructuring

+44 (0) 20 7694 5165 +44 (0) 20 7311 4817 +44 (0) 20 7694 3747


Frank Sangster Tim Jones Naseem Walker

Environmental Taxes and Incentives Carbon Efficient Supply Chain Carbon Management+44 (0) 20 7311 2448 +44 (0) 20 7311 2657 +44 (0) 20 7694 4274


The information contained herein is of a general nature and is not intended to address the circumstances of any

particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no

guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the

future. No one should act on such information without appropriate professional advice after a thorough examination of

the particular situation.

© 2008 KPMG LLP, a UK limited liabili ty partnership, is

a subsidiary of KPMG Europe LLP and a member firm

of the KPMG network of independent member firms

affiliated with KPMG International, a Swiss

cooperative. All rights reserved.

Printed in the United Kingdom.

KPMG and the KPMG logo are registered trademarks

of KPMG International, a Swiss cooperative.

Designed and produced by KPMG LLP (UK)’s

Design Services

Publication name: Climate Change Business

Leaders Survey II

Publication number: 311-970

Publication date: February 2008

Printed on recycled material.

mailto:[email protected]


















311907 kpmg climate change attitude survey

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