Report: Transport sector's green efforts stuck in the slow lane

The transport industry was today urged to step up efforts to curb carbon emissions, after new research revealed the majority of firms in the sector have failed to implement climate change strategies.

The report, from the Carbon Disclosure Project (CDP), found that only 36 per cent of transport firms have implemented carbon-reduction plans, compared to 51 per cent of Global 500 firms across all sectors.

The CDP said the failure of transport firms to address climate change risks is startling, given that the transport industry accounts for 13 per cent of global greenhouse gas emissions and 60 per cent of oil consumption in high-income countries.

Introducing the report, Bob Stoffel, senior vice president at logistics giant UPS, said that pressure was mounting on the industry to take a more proactive approach to cutting emissions. "Our industry indisputably has a responsibility to address its environmental impact," he said. "We encourage the companies in our industry to act decisively to ensure a greener planet."

However, the CDP said that a handful of transport firms, including UPS as well as Air France and Toyota, have embraced the need to address climate change and rolled out comprehensive carbon-reduction initiatives and green investment programmes.

"There really is quite a big spread between the leading companies' understanding of carbon reductions and the broader group which has quite a long way to go," CDP chief partnerships officer Joanna Lee told BusinessGreen.com.

She added that the failure of many transport firms to emulate those companies that have adopted emission-reduction programmes could be the result of lax carbon regulations in many countries.

Geographically, transport firms in Europe and South America are leading the way in terms of setting carbon targets. Sixty per cent of South American transport firms and 52 per cent of European companies have set emissions targets and reduction plans, compared to just 47 per cent in the US.

"Regulation is a major factor, and awareness in European countries is quite developed," said Lee. "There is more consumer demand here, both from businesses and individuals who are looking to invest."

Other industries can expect to come under the CDP's microscope in the coming months, according to Lee, who revealed the group is planning to release three reports for the investment community later this year analysing carbon policies across the electric utilities, oil and gas, and automobiles sector.

Road transport accounts for the vast majority of the sectors' emissions, at 80 per cent, followed by air at 13 per cent and sea transportation at seven per cent.