311907 KPMG Climate Change Attitude Survey
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Transcript of 311907 KPMG Climate Change Attitude Survey
7/31/2019 311907 KPMG Climate Change Attitude Survey
http://slidepdf.com/reader/full/311907-kpmg-climate-change-attitude-survey 1/6
Climate ChangeBusiness
Leaders Survey II6 months on
KPMG LLP (UK)
7/31/2019 311907 KPMG Climate Change Attitude Survey
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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.
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“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
Source: KPMG LLP (UK)
… 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%
Source: KPMG LLP (UK)
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 ■
© 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.
7/31/2019 311907 KPMG Climate Change Attitude Survey
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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
© 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.
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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
Source: KPMG LLP (UK)
© 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.
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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
[email protected] [email protected] [email protected]
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
[email protected] [email protected] [email protected]
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.