More UK companies are being transparent about the size of their carbon footprint, a report by the Carbon Disclosure Project (CDP) has suggested.
About 70% of the biggest 350 firms agreed to report their direct emissions of carbon dioxide and other greenhouse gases, compared with 49% a year ago.
Companies are under increasing pressure from investors to release details about their environmental record.
The response rate was better than most countries, including the US, CDP said.
'Significant milestone'
Compiled by environmental research organisation Trucost, the CDP is backed by a group of 315 of the world's largest investment houses with $41 trillion under management - equivalent to three times the annual economic output of the US.
"For many companies it is the supply chain that makes up the vast majority of their emissions"
FTSE 350 companies were asked how much carbon dioxide (CO2) they produced both directly and indirectly - for example in the production of electricity they buy.
These emissions totalled more than 563 million tonnes of CO2.
But this did not include emissions from supply chains which would make up the bulk of the carbon footprint of most firms and often occurs overseas, CDP said.
A number of large firms - including Tesco, Unilever, Imperial Tobacco and Cadbury Schweppes - are now working with CDP and their suppliers to find a uniform way of measuring these emissions.
"These collaborations mark a very significant milestone in corporate action to mitigate climate change," CDP chief executive Paul Dickinson said.
"By engaging their supply chains, companies will encourage suppliers to measure and manage their greenhouse gas emissions, and ultimately reduce the total carbon footprint of their indirect emissions.
"For many companies it is the supply chain that makes up the vast majority of their emissions, so this initiative is vital in helping them reduce their total carbon footprint."
'Positive message'
The CDP report was launched five years ago to encourage disclosure from companies about carbon emissions, allowing investors to make informed decisions about where they put their money.
Analysts have argued that as global warming becomes a bigger concern, a company's share price will increasingly be impacted by its environmental performance.
"UK companies are taking steps to understand the risks and opportunities that climate change presents to their business"
Climate Change Minister Joan Ruddock said that more investors must give consideration to environmental and social credentials in making investment decisions.
"Investors should... send out signals to the financial markets to say that carbon disclosure is vital and show companies that it will affect their investment decisions. Together we must work to drive down emissions," she said.
Mr Dickinson added that UK firms were "leading" the way when it came to disclosing their greenhouse gas emissions, compared with overseas firms.
"This sends out a positive message that UK companies are taking steps to understand the risks and opportunities that climate change presents to their business and recognising the importance of disclosure on the issue," he added.
The increasingly important value investors put on a firm's approach to climate change meant "the pressure is increasing on companies to respond", he said.
The CDP report also said that 87% of the firms which responded felt that climate change posed a commercial risk, with 38% saying that they had implemented projects to reduce emissions.
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