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TORONTO, ONTARIO, Sep 5, 2006 -- CCNMatthews
Greenhouse gas (GHG) emissions management remains on the back burner for more than half of emitting Canadian companies, according to a recent Deloitte survey, the GHG Emissions Management Survey 2006. Rather than taking a total company approach to emissions management, primary responsibility continues to rest with most organizations' head of environment or sustainability, with only 53% having board of directors involvement. "To date, most Canadian companies have taken the path of least resistance when it comes to GHG emissions management," says Valerie Chort, partner and national leader of Deloitte's Environment, Health, Safety and Sustainability group. "The survey results suggest many companies are not considering all of the risk factors associated with GHG emissions management. Mitigation and adaptation strategies go beyond technical considerations and include, for example, environmental, emissions markets, and organizational risk factors. Companies need an integrated approach that includes internal mitigation options, external trading options, and adaptation requirements." Those companies that are taking actions are doing so to: Regulatory uncertainty a barrier One of the biggest challenges emitting companies currently face is the uncertainty related to potential government regulations governing carbon emissions. While 80% of companies have taken steps to understand their current GHG emission intensity or total emissions, regulatory uncertainty makes it difficult to implement mitigation strategies. In addition, most survey respondents acknowledged that the lack of specific accounting and tax guidance has affected their ability to evaluate GHG management plans. The pressing nature of this issue is highlighted by the fact that over 50% of survey respondents are actively involved in public policy discussions, and another 28% are monitoring policy developments and getting involved as required. Emissions management requires investment When it comes to implementing GHG management plans, the message is mixed. On the one hand, over two-thirds of survey respondents indicated they have the capabilities to establish policies (79%), complete inventories (91%), and identify their abatement options (67%). On the other hand, most organizations also indicated they lack the internal resources and skills to engage in external market mechanisms, alter their operations, or position the company to make appropriate physical investments. Given these findings, companies may need to strengthen their resources going forward, if an energy trading scheme is introduced. Companies have not yet developed detailed protocols for GHG emissions management. In keeping with their stated capabilities, 93% of respondents believe they have raised awareness about GHG emission issues throughout the organization. Similarly, many respondents have established organizational responsibilities (72%) and developed baselines (84%). The challenge arises when it comes to moving beyond these initial steps. Survey responses showed that most companies (71%) have not established clear budgets for executing carbon reductions, have not set emission abatement targets or schedules (60%), and do not have systems of disclosure in place (65%). In many cases, plans are developed but have not gained visibility beyond the plan's initiators, nor have they resulted in coordinated actions and policies. "Despite the inherent uncertainties, companies should take action now," suggests Pat Concessi, partner with Deloitte's Global Energy Markets group. "Companies can develop robust plans that will stand them in good stead for a variety of outcomes. Developing plans now will create more options for meeting future requirements." About the survey Deloitte's GHG Emissions Management Survey was sent to 220 Canadian large GHG emitters. The majority of the 80 survey respondents was from the oil and gas, manufacturing, and power generation sectors. Fifty-six percent of the respondents considered themselves Large Final Emitters (LFEs) as defined by Environment Canada, 36% did not, and 8% were unsure. About Deloitte Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, financial advisory and enterprise risk services to a wide range of Canadian and international clients. Deloitte is the Canadian member firm of the Deloitte Touche Tohmatsu Verein, which is an association of firms operating in almost 150 countries. Together, DTT member firms have almost 135,000 employees around the world. In Quebec, Deloitte operates as Samson Belair/Deloitte & Touche. SOURCE: DELOITTE & TOUCHE News Provided By |
