Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

Investors Want Companies to Disclose Environmental Risk

Business
Protesters used a tractor blockade and climbed a smokestack to halt construction of the Cricket Valley fracked gas power plant in Wingdale, New York, citing the plant's large contribution to climate change and air pollution, on Nov. 16, 2020. Erik McGregor / LightRocket via Getty Images

There's a growing push from large investors in publicly traded companies to hold the companies accountable for the environmental impact of their practices. In the latest salvo, global companies worth more than $10 trillion are urging companies to disclose their environmental impact to investors, as Forbes reported.


Activist campaigns have proven remarkably effective recently, as major investment firms have divested from fossil fuels and refused to support coal or Arctic drilling. Investor activism has also been credited with securing a series of net-zero emissions pledges from a number of companies, including energy and mining companies.

The Non-Disclosure Campaign organized by CDP, a non-profit global environmental disclosure platform, is composed of more than 100 investors, holding assets worth upwards of $10 trillion, from 23 different countries. They issued a letter to 1,051 countries, including Facebook, Amazon, Domino's and Exxon, insisting that the companies make a more complete disclosure of their environmental impact and risks to their business from the climate crisis, as The Economic Times reported.

The 1,051 companies targeted for lobbying have a combined market value of more than $8 trillion and emit the equivalent of more than 4,800 megatons of CO2. That's equivalent to the amount of CO2 emitted by the U.S. in 2017, according to Forbes.

The companies that the CDP wrote to declined to provide relevant information on their environmental impacts to investors in the past. While nearly 20 percent do disclose some information about information on their greenhouse gas emissions, climate strategies, and policies relating to water use and deforestation, even those companies have been asked to disclose other issues that are germane to their business.

CDP said publicly naming companies helped to improve engagement with investors, as Business Green reported. The CDP found that when 88 large investors pinpointed 707 companies through the campaign, the companies were more than twice as likely to offer up new information.

"The importance of investor engagement to drive disclosure cannot be overstated," said Emily Kreps, global director of capital markets at CDP, as Business Green reported. "Climate change, water security and deforestation present material risks to investments, and companies that are failing to disclose their impact risk trailing behind their competitors in their access to capital.

"As the growth of this campaign shows, investors require decisive data that is consistent, comparable and comprehensive. To make this possible, they expect companies to wholeheartedly engage with TCFD-aligned standards on environmental disclosure and reporting. With business resilience and adaptation to unexpected, systemic risks exposed by the recent public health crisis, the tide is rapidly turning against companies not taking note of investor demands."

The 105 institutional investors who joined the Non-Disclosure Campaign marks a 20 percent increase over last year. They range from the New York State Common Retirement Fund to Trillium Asset Management to Legal and General, one of the UK's largest investors. The investors echoed Kreps.

"Climate change, deforestation and water security have become material issues to many industries. Investors require more comprehensive information and scientific analysis to address risks and opportunities derived from these issues," said Sophia Cheng, chief investment officer at Cathay Financial Holdings, as Forbes reported.

Katarina Hammar, head of active ownership at Nordea Asset Management, said her investment company believes "that increased transparency around companies' environmental performance is a key enabler to improve company performance and to create a more resilient economy," as Business Green reported.

"Consistent and comparable data is key in our company analysis and in particular in the climate risk and opportunity analysis," she added.

EcoWatch Daily Newsletter

U.S. Vice President Joe Biden speaks during a White House Clean Energy Investment Summit on June 16, 2015 in the Eisenhower Executive Office Building in Washington, DC. Alex Wong / Getty Images

By Jake Johnson

With presumptive Democratic nominee Joe Biden's climate platform becoming increasingly ambitious thanks to nonstop grassroots pressure, fossil fuel executives and lobbyists are pouring money into the coffers of President Donald Trump's reelection campaign in the hopes of keeping an outspoken and dedicated ally of dirty energy in the White House.

Read More Show Less
The Food and Drug Administration is now warning against more than 100 potentially dangerous hand sanitizers.
Antonio_Diaz / Getty Images

The Food and Drug Administration (FDA) is now warning against more than 100 potentially dangerous hand sanitizers.

Read More Show Less
New York Gov. Andrew Cuomo speaks at a news conference on July 1, 2020 in New York City. Byron Smith / Getty Images

While the nation overall struggles with rising COVID cases, New York State is seeing the opposite. After peaking in March and April and implementing strict shutdowns of businesses, the state has seen its number of positive cases steadily decline as it slowly reopens. From coast-to-coast, Governor Andrew Cuomo's response to the crisis has been hailed as an exemplar of how to handle a public health crisis.

Read More Show Less
A whale shark swims in the Egyptian Red Sea. Derek Keats / Wikimedia Commons / CC by 2.0

By Gavin Naylor

Sharks elicit outsized fear, even though the risk of a shark bite is infinitesimally small. As a marine biologist and director of the Florida Program for Shark Research, I oversee the International Shark Attack File – a global record of reported shark bites that has been maintained continuously since 1958.

Read More Show Less
A girl sits under a temporary shade made by joining two bed in Churu, Rajasthan on June 4, 2019. Temperatures in the Indian desert city hit 50 degrees C (122 F) for the second time in three days, sending residents scrambling for shade. MONEY SHARMA / AFP via Getty Images

Current efforts to curb an infectious disease show the potential we have for collective action. That action and more will be needed if we want to stem the coming wave of heat-related deaths that will surpass the number of people who die from all infectious diseases, according to a new study, as The Guardian reported.

Read More Show Less
America Pikas are found from the Sierra Nevada to the Rocky Mountains, and have been migrating to higher elevations. Jon LeVasseur / Flickr / Public Domain

By Jenny Morber

Caribbean corals sprout off Texas. Pacific salmon tour the Canadian Arctic. Peruvian lowland birds nest at higher elevations.

Read More Show Less

Trending

Biologists are studying the impact of climate change on the Nenets and their reindeer herds. Deutsche Welle

Biologist Egor Kirillin is on a special mission. Deep in the Siberian wilderness in the Russian Republic of Sakha, he waits on the Olenjok river until reindeer come thundering into the water.

Read More Show Less