A new report, ‘Managing greenhouse gas emissions across the value chain: the new agenda’, published by Insight Investment , in conjunction with international consulting group Acona, argues that greenhouse gas emissions from companies’ value chains represent a material source of risk and opportunity for companies.

 Insight’s report argues that there are two reasons for companies to focus on emissions from their value chains:

• The increasingly compelling financial argument driven by a combination of current and potential legislation, increasing consumer interest in low carbon products and stakeholder pressure for credible and transparent information on greenhouse gas emissions.   

• The fact that, for many companies, the value chain may actually be their most significant source of emissions and it therefore makes sense for companies to focus their efforts in this area.   

The report argues, however, that current practice seems to be lagging the need for action. Dr Rory Sullivan, head of responsible investment at Insight, commented: “As investors we support the efforts being made by companies to assess and manage their emissions more effectively and develop tools for quantifying and reporting on performance as part of their main business objectives. We are concerned, though, that a focus on measuring or gathering definitive emissions data for the purposes of reporting may have the effect of moving us away from the core objectives of reducing emissions in a practical cost-effective manner.”

Paul Burke, senior partner, Acona, said: “As with other aspects of CSR and sustainability, the challenge is to establish a clear and compelling linkage between the organization’s business strategy and the management of GHG emissions. By focusing attention on the most significant – in financial and environmental terms – areas, the cost of data capture and reporting will be greatly reduced; moreover, there is a far higher probability that real progress will be achieved.”

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For further information please contact:

Insight Investment press office                     Tel: 020 7321 1358

Notes to editors:

Issued by Insight Investment Management (Global) Limited. Registered in England and Wales. Registered office 33 Old Broad Street, London EC2N 1HZ. Registered no. 827982. Authorised and regulated by the Financial Services Authority.

Insight Investment manages funds for institutional and retail clients across a range of asset types including equities, bonds, derivatives and alternatives, with the aim of providing precise investment solutions for investment needs. Insight’s assets under management totalled £119.2 billion as at 31 December 2008.

www.insightinvestment.com

Acona is an independent, employee-owned corporate responsibility consultancy, based in London but with staff across the UK.  We advise our clients on the full range of social, environmental and ethical matters, from tentative first steps through to developing a coherent strategic approach, day-to-day management, performance measurement and reporting.

www.acona.com/cr