EIO reveals 100 UK firms’ carbon rankings

16 Feb 2011

The Environmental Investment Organisation(EIO) has created the ET UK 100 Carbon Ranking list that highlights the best and worst businesses in terms of greenhouse gas emissions and levels of transparency.

The EIO is a UK non-profit research body that has produced the ET UK 100 as part of the first in a series of carbon rankings, where the largest companies’ across the globe will be covered through the forthcoming ET Global 800, Europe 300, North America 300, Asia-Pacific 300 and BRICS 100.

The EIO has employed a strict methodology based on complete disclosure of Scope 1 and 2 emissions, according to the Greenhouse Gas Protocol, the internationally recognised standard for emission reporting.

Amlin is at the top of the 100 with carbon intensities of 1.21. Financial services Aviva is in second place, with carbon intensities of 1.36. Man group is ranked in third place, with carbon intensities of 6.29 and British broadcasting BskyB is ranked in fourth place, with carbon intensities of 6.69, followed by energy services company AMEC, at 8.31.

Randgold, a gold-mining company that operates primarily in West Africa, was ranked the worst of the 100, with carbon intensities 3,477.34.

The EIO will use the rankings to create a series of tradeable indexes, which will be launched later in 2011. The ET Carbon Indexes are designed to lower corporate emissions by influencing a company’s share price. This will encourage transparency and emission reductions on a global scale.

Tony Greenham, head of finance and business, New Economics Foundation, said, “It’s a very sound approach. You’re pushing up the cost of capital for carbon-inefficient companies and lowering the cost of capital for the carbon-efficient companies, and I think that’s a simpler and potentially very powerful mechanism.”

Michael Gill, the EIOs founder and chairman, said, “It’s been a tough 15-year journey to get to this point. It seems that finally the world is willing to take a serious look at our proposal for a market-based incentive using the investment system and index funds. It completely bypasses the political log jam to be found throughout the world. Time is short and this is doable if the right people can be pressured into responding positively.”