Investors Want More Disclosure of Climate Risk Data from Corporations

Filed under: Green Investment | |

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.

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Author: Tracey de Morsella (323 Articles)

Tracey de Morsella started her career working as an editor for US Technology Magazine. She used that experience to launch Delaware Valley Network, a publication for professionals in the Greater Philadelphia area. Years later, she used the contacts and resources she acquired to work in executive search specializing in technical and diversity recruitment. She has conducted recruitment training seminars for Wachovia Bank, the Department of Interior and the US Postal Service. During this time, she also created a diversity portal called The Multicultural Advantage and published the Diversity Recruitment Advertising Toolkit, a directory of recruiting resources for human resources professionals. Her career and recruitment articles have appeared in numerous publications and web portals including Woman Engineer Magazine, Monster.com, About.com Job Search Channel, Workplace Diversity Magazine, Society for Human Resource Management web site, NSBE Engineering Magazine, HR.com, and Human Resource Consultants Association Newsletter. Her work with technology professionals drew her to pursuing training and work in web development, which led to a stint at Merrill Lynch as an Intranet Manager. In March, she decided to combine her technical and career management expertise with her passion for the environment, and with her husband, launched The Green Economy Post, a blog providing green career information and covering the impact of the environment, sustainable building, cleantech and renewable energy on the US economy. Her sustainability articles have appeared on Industrial Maintenance & Plant Operation, Chem.Info,FastCompany and CleanTechies.