New research by the Carbon Disclosure Project (CDP) with responses from 80 of CDP’s signatory investors across the globe revealed that three-quarters factor climate change information into their investment decisions and asset allocations. Of these, more than 80% consider climate change to be important relative to other issues impacting their portfolio. Interestingly, some of the institutions surveyed revealed a willingness to go beyond requesting disclosure on climate change, such as asking companies to reduce their greenhouse gas emissions.
Mercer, a leading global provider of consulting and investment services, analysed the survey results and compiled the report which summaries the ways in which CDP data is being used by investors. It includes responses from asset managers, pension funds,
insurers and socially responsible investment funds including Allianz, AXA Group, BlackRock, Goldman Sachs, Hermes Investment Management and Swiss Re.
“Following clear indications, from the new US administration and other governments, we can expect to see a marked increase in climate change regulation globally. This will increase the materiality of climate change for investors and drive up costs for companies unable to,” Marc Fox, Vice President of GS SUSTAIN Research at Goldman, Sachs & Co.
The research shows that investors are already including climate change related issues into their investment decisions. In addition, a near 25% increase in signatories is a clear signal that institutional investors require listed companies to report to CDP as climate change related information becomes increasingly important to investment decisions.
© 2009, Tracey de Morsella. All rights reserved. Do not republish.