National Australia Bank, VicSuper, AMP Capital Investors, BT Financial Group and the Catholic Superannuation Fund have joined a global group – the Carbon Disclosure Project (CDP). They will write to companies in the S&P/ASX 100 and NZSX 50 from 2006, asking them to reveal carbon emissions and policies.

Under the CDP model, many institutional investors collectively sign a single global request for disclosure of information on Greenhouse Gas Emissions. CDP then sends this request to large companies.

It began by targeting the Financial Times-rated 500 largest companies in the world (FT500). More than 350 of these corporations currently report their emissions through the CDP website.

In Australia, BP Australasia president Gerry Heuston told the Australian Financial Review (AFR) he supported mandatory disclosure of emissions data and a trading scheme to control greenhouse gases, the AFR reported.

Other business leaders from the insurance, mining and banking heads told the AFR that global warming could hurt the business sector as well as the general environment.

Commonwealth Bank chairman John Schubert said Australia had to reduce its dependence on fossil fuels. He pointed out that the Great Barrier Reef, which brought about $A5 billion a year into the Australian economy, was under threat from global warming.

BHP Billiton chairman Don Argus said all companies should adopt policies to reduce greenhouse gas emissions. BHP Billiton had set a target of reducing the greenhouse intensity of its operations by 10% between 1995 and 2000. It had exceeded this goal, and aimed to reduce its emissions by a further 10%.

The country’s biggest insurer, IAG, is predicting an increase in weather-related disasters. Chief Executive Michael Hawker told the AFR that governments needed to act immediately.

The insurance industry has long advocated action on global warming.

Peter Hoeppe, head of Geo Risks Research of Munich Re, the world’s largest insurer of insurance companies, has said the impact of global warming-linked weather disasters is hurting the insurance and reinsurance industry.

According to Munich Re, insured disaster losses in 2004 were $US44 billion, the most expensive year ever for the insurance industry. Total disaster losses, insured and uninsured, were $US114 billion. This compares to $US40 billion (in 2004 dollars) in 1980 and $US10.5 billion in 1951. Hurricane Katrina alone may result in personal and commercial property loss claims of $US35 billion.

At a conference in Melbourne on November 11, sponsored by the Insurance Council of Australia, Hoeppe told delegates that between 1994 and 2003 there were almost three times as many weather-related natural disasters as in the 1960s.

“Natural catastrophes are increasing dramatically in number and magnitude,” Hoeppe said. “The insurance industry has to consider climate change in its risk models.”

Munich Re has assembled a team of 25 meteorologists, geologists, hydrologists and economists to study the likely consequences of global warming. Swiss Re, another reinsurance corporation, is funding studies to determine how rising global temperatures could increase the spread of diseases and allergens, which would harm the profits of health insurance and life insurance companies.

Meanwhile, a report from the European Environment Agency (EEA) has claimed that environmental management and regulations encourage competitiveness and help the economy, claiming Britain could save up to £5.8 billion ($A13.57 billion) a year.

The EEA is a network of environmental protection agency heads throughout Europe, including the United Kingdom’s Environment Agency chief executive Barbara Young.

Young said the EEA report demonstrated that successful environmental management and regulation was good for businesses as well as the environment.

“In the past, we have often been forced to defend claims that rigorous regulation inhibits economic development and reduces competitiveness – this is simply not true,” Young said.

“Countries with good, well-designed environmental regulations are the best countries to do business in.”

According to Young, the suggested £5.8 billion ($A13.57 billion) in annual savings would be best realised by waste minimisation from British manufacturers, resulting in annual savings of almost £3 billion ($A7.02 billion) a year.

The EEA report said a further £1.8 billion ($A4.2 billion) in savings could be achieved through energy efficiency initiatives, while agricultural businesses could achieve up to £1 billion ($A2.34 billion) a year in savings through improved environmental management.

Young said that effective environmental regulations would create an industry with more 2.68 million full-time jobs, further stimulating the economy.

Ben Verwaayen, chief executive of UK telecommunications giant BT, agreed that environmental management could result in significant savings for big business.

“Last year alone, BT saved millions of pounds as a result of efficiency programs with a strong environmental benefit,” he said.

“Environmental performance is becoming increasingly more important to all our stakeholders. Our track record on the environment and social issues last year allowed us to bid for £2 billion worth ($A4.68 billion) of new business,” Verwaayen said.