Investors Write to 10,000 Companies to Disclose Environmental Data

Published on: 15 March 2022 06:50 PM
by KnowESG

A Brief Summary

Investors managing assets of more than $130 trillion have communicated to over 10,000 companies to disclose environmental data to a global non-profit disclosure platform, Customer Data Platform (CDP), which is a single centralized customer database containing data on all touch-points and interactions with your product or service.

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The decision comes as asset managers demand information on biodiversity, climate change and water security that facilitate them to assess the performance of companies when the world looks forward to reducing human-induced global warming.

While companies are driving towards net-zero carbon emissions by mid-century and are being forced to help preserve the earth's vulnerable ecosystem, many have so far avoided filling out an annual data request by the CDP.

Financial institutions such as Amundi, Europe's largest asset manager, are among more than 680 institutions that lent their voices to request data. Current disclosures cap over 13,000 companies that cover around 64 per cent of the global market capitalization.

CDP Chief Executive Paul Simpson said, “While many companies are disclosing, setting targets and taking action across their business operations and value chains, a surprisingly large portion of the market is still under disclosure. The important first step is yet to be taken. These companies are increasingly out of touch with reality, investor and public opinion.”

While worldwide legislation on disclosure is still being worked out, the CDP disclosure procedure, which takes the form of a sector-specific questionnaire, guarantees that investors, index providers, and rating agencies have access to consistent data.

Jean-Jacques Barberis, Head of Institutional and Corporate Clients Coverage and ESG Supervisor at Amundi, said, “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. the wanted. It’s also important for us to meet our own climate goals.”