Hydro on Climate Leadership Index

September 20, 2005, 14:00 CEST

Hydro has been placed on a "best in class" honor roll for global corporations addressing the challenges of climate change.

 The Carbon Disclosure Project, a secretariat for major institutional investors, has produced a "Climate Leadership Index" comprised of 60 FT500 companies that showed distinction in their responses to a survey.

The survey covered reporting of greenhouse gas emissions and an independent assessment of companies' climate change strategies, risk management capability, and strategic positioning in regard to "next generation" opportunities.

"We're pleased to see Hydro included on the list," says Lasse Nord, senior vice president for Climate and Environment.

"It confirms we're on the right track on the management of climate risk. Specifically, we're reducing specific emissions of climate gases and looking at opportunities that the climate challenge poses. In addition, we're promoting aluminium as a material that is well positioned to help reduce emissions of climate gases, and developing new energy sources is an opportunity that arises out of the climate challenge."

The Carbon Disclosure Project was launched five years ago to gather the information necessary for investors to evaluate the winners and losers from a future impacted by climate change.

Candidates for the Climate Leadership Index were assessed relative to their peers in 12 sectors with focus on climate change. Hydro was judged among the best in the sector for integrated oil and gas companies.

Climate Leadership Index members in this sector were distinguished by their strategic awareness of the risks and opportunities of a carbon constrained environment, as well as the quality and effectiveness of programs put in place to reduce overall greenhouse gas emissions.

The 155 institutional investors representing USD 21 trillion in assets under management that backed this year’s Carbon Disclosure Project report sought to use the Climate Leadership Index as a means to highlight "best in class" corporate approaches to reduce greenhouse gas emissions and reduce risk associated with global climate change.

"Hydro has set itself apart among FT500, by enacting a commendable response to global climate change,” the project report says.

"The global investment community is keenly aware of the risks associated with climate change and hope corporations such as Hydro provide a solid example for others in its peer group to follow. The companies represented in the Climate Leadership Index are united in their comprehensive knowledge of climate risks and active management of greenhouse gas issues."