FTSE 250 slow to act on climate change

London, 13 July: UK companies outside the FTSE 100 are lagging behind in tackling the impacts of climate on their businesses, according to a study by the CarbonNeutral Company.

Only 40% of firms listed on the FTSE 250 publicly acknowledge climate change as a business issue, compared to 80% of the FTSE 100, according to the study from the UK-based carbon management company.

While 38% of FTSE 100 businesses have set targets to control emissions, only 6% of FTSE 250 firms have done the same. And 81% of blue-chip companies report on their carbon dioxide (CO2) emissions, compared to just 27% in the FTSE 250.

Only the utilities and transport companies on the FTSE 250 buck the trend, with 75% and 58% respectively reporting CO2 emissions.

"It is excellent that large companies are taking the lead on tackling climate change, as this action is useful in setting direction, and signalling business appetite for action. But in terms of tackling the essential challenge of climate change – this isn't going to do it," said Jonathon Shopley, chief executive of the CarbonNeutral Company.

"The FTSE 100 together only represent a small fraction of global emissions, so their reduction efforts aren't going to make a huge impact. The FTSE 350, and the hundreds of thousands of companies that make up the industrial base, are responsible for a material proportion of emissions," he added.

"It's no surprise to me that the FTSE 100 is leading this," said Matthew Farrow, head of environment at the Confederation of British Industries, the leading employers' body in the UK, citing those companies' larger internal resources and greater pressure from investors as possible reasons behind the trend. "We would expect and encourage other companies to follow the lead of the FTSE 100. There's quite a lot of things going on that are leading in that direction."