More investors call on firms for environmental transparency - disclosure charity
By Juliette Portala
June 29 (Reuters) - A growing number of financial institutions are urging companies to disclose environmental data, non-profit disclosure platform CDP said on Wednesday.
More and more climate experts, investors and regulators agree on the need to improve corporate transparency to aid the fight against climate change. But many also accuse companies of "greenwashing" with splashy announcements that will do little to reduce overall greenhouse gas emissions.
CDP has emerged as the world's biggest repository of environmental data submitted on a voluntary basis by companies.
For its 2022 campaign, CDP said 263 global investors with more than $31 trillion in assets, including Amundi, Cathay Financial Holdings and Legal & General, had joined in with requests for disclosure - 57% more institutions than in 2021.
CDP says investors might use non responsiveness as evidence to withdraw investments or file shareholder resolutions against the board.
The 1,473 targeted companies, including carmakers, miners and pharmaceutical companies, are estimated to emit collectively more than 4,800 megatonnes of carbon dioxide equivalent each year, it said.
Over two thirds of them have been asked to disclose on at least their impact on climate change, CDP said. It however noted a strong increase in the number of companies engaged on their impact related to water security and forests.
"Climate change, deforestation and water security present material risks to investments, and companies that are failing to disclose their impact risk trailing behind their competitors in their access to capital," Joint Global Director of Capital Markets at CDP Laurent Babikian said in a statement.
CDP's campaign last year resulted in the highest response rate to date, with nearly 60% more companies disclosing details compared to 2020 after they were selected by investors.
"With a series of mandatory environmental disclosure requirements on the horizon ..., non-disclosure will no longer be an option for many of these companies," Babikian added.
Last week, business associations for top U.S.-listed firms pushed back against the Securities and Exchange Commission's landmark proposal to make corporate America disclose greenhouse gas emission figures. (Reporting by Juliette Portala; Editing by Tommy Reggiori Wilkes and Alison Williams)
