The Carbon Disclosure Project (CDP) acts on behalf of over 700 institutional investors (pension funds, mutual funds, etc.) with almost $100 trillion of investments to collect and distribute information on corporate greenhouse gas (carbon) emissions. These investors are interested in taking carbon emissions into account in selecting companies in which to invest, and the CDP maintains a database of that information, based on responses to a questionnaire that it sends each year to the largest companies in the world. The annual CDP reports, produced by Pricewaterhouse Coopers, are used not only by investors but also by governments and corporate supply chain managers in choosing suppliers. UN Secretary-General Ban Ki-moon stated, “The Carbon Disclosure Project is harnessing the power of information and investor activism to encourage a more effective corporate response to climate change.”4

The CDP Supply Chain Report 2014–155 asks suppliers in major countries to (i) report their greenhouse gas emissions; (ii) report any emissions reduction targets they have set themselves; and (iii) report any emissions reduction initiatives they are implementing. The percentage of companies complying with these requests is given in the table below, together with the total number of companies surveyed in a random selection of countries as well as the global average over all countries included. The data are also available in the file ch16_MCSP_CDP.

Using the appropriate chi-square tests with a 95% significance level, determine: (a) for target setting, (i) whether results are uniform across all the countries, and (ii) whether results for Canada are different from the global average; and (b) for emission reduction initiatives, (i) whether results are uniform across all the countries, and (ii) whether results for Canada are different from the global average. (c) Select a single country and describe how it explains your result for (a).

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United Global Brazil Canada 60% 53% 32% 26% France Germany States 61% 54% Average 54% 37% China 49% Reporting emissions Target setting Emission reduction initiatives Number of companies 60% 48% 77% 59% 64% 30% 118 52% 2756 50% 49% 61% 45% 78% 112 1379 167 147 72