680+ Investors Call on Over 10K Companies to Share Environmental Data

2022-03-15

While more companies are reporting through CDP every year, many still do not disclose enough data on their environmental impact. Non-disclosure will not be an option for many companies for much longer, with a series of mandatory environmental disclosure requirements coming this year around the world.

More than 680 financial institutions worth over US$130 trillion in assets are calling on the Boards of nearly 10,400 companies worldwide — worth US$105 trillion in market cap — to disclose data on their environmental impact this year through CDP.

The groups of investors — which includes Allianz, Amundi, AXA, BNP Paribas, CalPERS, Capital Group, State Street and Vanguard — sent letters today requesting the companies in question disclose their data on all or some of the following environmental issues: climate change, deforestation and water security.

Almost 100 more financial institutions — including asset managers, asset owners, banks and insurance companies — have put their name to the disclosure request this year compared to last, demonstrating rising demand for TCFD-aligned corporate environmental information.

This growing market demand is driving more transparency every year, with CDP last year recording higher corporate disclosure numbers than ever before. Nearly 3,200 companies (out of 7,176 requested) disclosed their environmental information in response to CDP’s Letter to the Board in 2021. This is in addition to over 10,100 other companies that disclosed through CDP, either at the request of their business customers through CDP’s Supply Chain program, or of their own volition. So, over 13,000 companies, total — representing some 64 percent of global market cap — disclosed their data through CDP in 2021.

Companies being asked to disclose by these institutions include over 3,300 companies that are being requested for the first time (marking a 46 percent increase since last year), as CDP pushes to scale the uptake of corporate environmental reporting even further. Since the first disclosure request was sent out in 2002, CDP has grown to house the world’s largest global repository of environmental data; but by 2025, the aim is to grow this to cover 90 percent of the world’s highest-impact firms.

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Sustainable Brands, 15-03-22
; https://sustainablebrands.com/read/finance-investment/680-investors-call-on-over-10k-companies-to-share-environmental-data/