Heavyweight investors demand more disclosure of environmental risks

Amazon, Facebook, Tesla and Berkshire Hathaway have failed to report data on climate change to their shareholders, according to a coalition of heavyweight investors, which is demanding 1,320 companies provide clearer disclosures about environmental risks.

Concerns that climate change will lead to catastrophic environmental damage is fueling demands from institutional investors and regulators for companies to accelerate their efforts to reach the goal of a zero-carbon economy.

Before COP26 . Climate Conference In Glasgow scheduled for November, 168 asset managers and financial institutions from 28 countries, which collectively represent more than $17 trillion in pooled assets, have signed up to support the Carbon Disclosure Project’s campaign to ensure that data on climate change, deforestation and water use are up to date. Reported correctly by the companies.

It is estimated that more than 4,700 megatons of carbon dioxide emissions are produced by the target 1,320 companies, more than the entire European Union, according to the CDP.

Emily Krebs, global director of capital markets at CDP, said the tide is turning against companies that are not responding to investor demands for better disclosure of environmental risks.

This year’s campaign against nondisclosure achieved record levels of support with a 56 percent increase in investor participation. “Investors need consistent, comparable and comprehensive data to help them achieve their net zero ambitions,” Krebs said.

US regulators are engaged in an intense debate about whether to impose formal disclosure requirements for environmental, social and governance metrics on US companies.

Amazon and Facebook signed a file Speech This month to the Securities and Exchange Commission, which said it supports “regular and consistent reporting on climate-related matters,” while also urging the US regulator to allow ESG data. Published separately From the company’s main financial reports to avoid potential legal problems.

“Mandatory disclosure of ESG is an essential planning tool that can help create regulatory certainty and a level playing field,” said Paula DePerna, CDP’s North American Special Adviser.

Roche, the Swiss drugmaker, Chipotle Mexican Grill, the US burrito chain and US homebuilder Lennar are among 73 defaulters providing inadequate disclosures on all three environmental topics highlighted by the CDP.

Claims for better disclosures have also been made to 122 Chinese companies including e-commerce group Alibaba, Kweichow Moutai, Distiller and Meituan Dianping, China’s largest food delivery app.

Environmental disclosure standards are showing signs of improvement as a result of pressure from large investors. A campaign coordinated last year by the CDP resulted in 206 companies responding to requests for disclosure from investors, up from 97 in 2019.

But the financial sector must do more to help achieve the goal of net zero carbon economy With less than half of banks, asset managers and insurers taking steps to ensure their investment portfolios meet the limits of rising global temperatures, according to the CDP.

Amundi, Aviva, Cathay Financial, HSBC Global Asset Management, Legal & General, Nuveen and Schroders have pledged support for the CDP campaign.

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