Investors crank up pressure on companies over green data

London — Investors managing more than $130-trillion in assets have written to more than 10,000 companies calling on them to supply environmental data to non-profit disclosure platform CDP.

The call comes as money managers demand better information on climate change, biodiversity and water security to help them analyse the performance of company boards as the world looks to come good on a plan to limit human-driven global warming.

While more companies are committing to net-zero carbon emissions by mid-century and are being pushed to help protect the world's vulnerable ecosystems, many have so far refused to fill out the annual data request by CDP.

This year, more than 680 financial institutions added their voice to the request for data, including Europe's biggest asset manager Amundi. Current disclosures cover more than 13,000 companies representing about 64% of global market capitalisation.

More than 3,300 of the companies to get a letter requesting data will be receiving it for the first time, while more than 4,000 will get a repeat request after failing to respond last year. The first request was sent out in 2002.

“While many companies are disclosing, setting targets and taking action across their own business operations and value chains, there is a surprisingly large part of the market still to take the vital first step of disclosure,” CDP CEO Paul Simpson said.

“These companies are becoming increasingly out of touch with reality, [and] investor and public opinion.”

Taking the form of sector-specific questionnaires, the CDP disclosure process ensures that investors, index providers and ratings agencies get access to standardised data, while global rules on mandatory disclosures are still being worked out.

“We need this comparable, consistent and clear data for our investment decision making, our research, our product development, our corporate engagement and our regulatory compliance,” said Jean-Jacques Barbéris, head of Institutional and Corporate Clients Coverage & ESG Supervisor at Amundi.

“It is also vital for us to meet our own climate goals.”

Reuters