A year ago this month the U.K. government published the ground breaking Stern Review on the Economics of Climate Change, which served as a wake-up call for many businesses to take action on managing their climate impact. Ethical Corporation magazine reports that while many companies have made a good start, their work to address the challenge has only just begun.

In the following excerpt, Ethical Corporation gives its rundown of major U.K. corporations that are leading the charge:

Cadbury Schweppes has proven to be a climate change leader in its sector. The Birmingham-based confectioner has committed itself to halving its carbon emissions by 2020. Energy reductions and renewables will form the bulk of its cuts, although the company says it will use offsets as a last resort. The target has also been made irrespective of growth , predicted by the company to run at 4% to 6% a year.

To top it off, the company was named best-in-show by the Carbon Disclosure Project in September 2006 for its climate change reporting. Forum for the Future says Cadbury will break even on its carbon-neutral investments within the next few years.

Other manufacturers have also stepped up to the challenge. Unilever, one of the worlds largest makers of household goods and food, has already reduced emissions in its manufacturing operations by more than 30% over the past decade. But few companies have yet to meet Cadburys ambitious plans.

Supermarkets have fallen over themselves to launch climate change campaigns. Tesco has committed itself to halving its greenhouse gas emissions by 2020 , in part by investing £500 million into environmentally friendly store refits.

Marks & Spencers comprehensive Plan A campaign aims to reduce energy use, open model green stores, research the food miles of its supply chain and help customers understand their own carbon footprints.

HSBC has introduced a range of energy efficiency measures to reach its target to go carbon neutral. Sir Nicholas Stern, author of the report The Economics of Climate Change," has joined the bank as an adviser on investments.

Competitor Barclays has committed itself to reducing its carbon emissions by 2010 by a fifth, based on a 2000 baseline. It, like HSBC, has gone carbon neutral through offsetting its remaining emissions.

Baby steps are also being taken into the world of carbon labeling. Walkers and Alliance Boots have co-operated with the Carbon Trust to launch a label that shows consumers the footprint of products , Walkers cheese and onion flavor chips and Boots Botanics and Ingredients shampoos , and the scheme will be withdrawn if the firms do not reduce those declared emissions within a two-year period.

To read the full article, click here.