The management of greenhouse gas emissions in large European companies

Based on the published climate change policies and the performance of 125 large European companies, this paper examines how these companies are responding to regulatory and other pressures to reduce their greenhouse gas emissions. It concludes that most large companies have now established the management systems and processes necessary for them to effectively manage their emissions and related business risks. Companies with significant greenhouse gas emissions have noticeably stronger governance oversight and reporting. However, it also suggests that a significant minority of companies – perhaps 20% of the total – have significant weaknesses in their management systems and processes. Furthermore, a majority of companies have yet to significantly reduce their emissions, and just one‐third expect their emissions to reduce over time. This paper argues that the uncertainties in climate change policy are the key barrier to companies taking a more proactive approach to reducing their emissions. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.