Asset managers request environmental data disclosures from over 10,000 companies through CDP framework

Nearly 100 more financial advisors

clock • 2 min read
More than 13,000 companies, representing 64% of global market capitalisation disclosed their data through CDP in 2021
Image:

More than 13,000 companies, representing 64% of global market capitalisation disclosed their data through CDP in 2021

Amundi, Axa, BNP Paribas and Vanguard are among more than 680 financial institutions that will be issuing letters to the boards of nearly 10,400 companies globally, worth $105trn in market cap, requesting they disclose data on their environmental impact this year.

The letters, which are going out to companies from today (14 March), will request that they disclose data on issues such as climate change, deforestation and water security, through non-profit CDP's environmental disclosure system.

CDP said that nearly 100 more asset managers, asset owners, banks and insurers have put their name to the disclosure request this year.

According to CDP, last year nearly 3,200 companies out of 7,176 requested disclosed their environmental information in response to its ‘letter to the board', in addition to the more than 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".

CDP: Only one third of companies developing climate transition plans

However, Berkshire Hathaway, Glencore, Exxon Mobil and Chevron were among the companies that last year failed to disclose any information in response to the request.

In 2021, more than 13,000 companies, representing 64% of global market capitalisation, disclosed their data through CDP, as it aims to grow its global repository of environmental data to cover 90% of the world's highest-impact firms by 2025.

This year, over 3,300 companies are being requested for the first time to disclose environmental data through CDP, up 46% since last year.

The scope of CDP's 2022 questionnaires has also widened this year, with questions on biodiversity impacts being asked for the first time, and more specific questions on company climate transition plans, while further expansions in the future will cover issues around land and oceans, and waste and food.

IPCC reaction: Capital and environment at risk if adaptation not addressed now

Paul Simpson, CEO of CDP, said: "While many companies are disclosing, setting targets and taking action across their own business operations and value chains, there is a surprisingly large part of the market still to take the vital first step of disclosure.

"These companies are becoming increasingly out of touch with reality, investor and public opinion, not just because of the regulatory stick that is approaching, but also because there are so many proven benefits to transparency."

He added: "We hope that this request, backed by such an influential group of financial institutions worldwide, will hit home and drive transparency and action even further."

CDP will open its online disclosure platform from mid-April.

More on Investment

Challenging markets can lead to investment opportunities

Challenging markets can lead to investment opportunities

Taking a longer-term view on falling asset prices

Natalie Tysoe
clock 18 June 2024 • 4 min read
Advisers say 'cash returns don't cut it' as equity exposure soars

Advisers say 'cash returns don't cut it' as equity exposure soars

Three quarters of advisers have helped clients increase equities exposure

Hope Coumbe
clock 14 June 2024 • 1 min read
Goal progression: What matters most to younger investors

Goal progression: What matters most to younger investors

Many advisers are trying to win over and retain more younger clients

Gordon Titman
clock 13 June 2024 • 4 min read

In-depth

Serving HNW clients: 'Advisers must take a greater deal of care'

Serving HNW clients: 'Advisers must take a greater deal of care'

‘They need bespoke strategies with the expertise of multiple advisers’

Isabel Baxter
clock 17 June 2024 • 5 min read
Editor's View: The week we have all been waiting for...manifestos!

Editor's View: The week we have all been waiting for...manifestos!

The editor's Friday Night Takeaway from 14 June

Hope Coumbe
clock 14 June 2024 • 1 min read
Multi-asset sentiment indicator: Interest up for small and mid-caps

Multi-asset sentiment indicator: Interest up for small and mid-caps

'The consensus outlook for inflation and interest rates has shifted'

Paul Ilott
clock 12 June 2024 • 8 min read