Investors Ask for Green Information from Top 500 Companies
This week the world’s largest companies have been asked to reveal how green they are by a group of large investors with significant assets.
This week the world’s largest companies have been asked to reveal how green they are by a group of large investors with significant assets.
Companies listed in the FT Global 500 report have received communication requesting investment-relevant information concerning their greenhouse gas emissions.
Administered by the Carbon Disclosure Project on behalf of institutional investors such as the Abbey National bank, and Clerical Medical Investment Management, this initiative highlights the importance of shareholders having a good level of understanding of climate change risks and opportunities. Paul Dickinson, the project co-ordinator, points out that, "There are potential business risks and opportunities related to actions stemming from the perception of climate change that have implications for the value of shareholdings in corporations worldwide." The data to assess these issues are not always available and sometimes lack comparability or are of poor quality.
The large corporations have been asked to respond within six months, after which time Innovest Strategic Value Advisors will compile the information into a thematic and comparable report. This report will then be distributed to participating shareholding institutions and responding corporations. The report will also to be made available publicly at the Carbon Disclosure Project website.
Donna Clarke, Business Development Manager for low carbon company Greenergy, has welcomed the move, which should raise awareness of why carbon is a business risk issue. "Our experience at Greenergy is that most companies, including those considered to be environmental leaders, do not fully appreciate how the monetisation of carbon will impact on their business operations, their supply chain and their markets."
"The fact that the initiative is supported by leading investment banks will hopefully raise the stakes and put carbon on the board agenda," Clarke added. "But perhaps the financial sector should lead by example, and demonstrate how it is addressing carbon as a business issue."
Companies listed in the FT Global 500 report have received communication requesting investment-relevant information concerning their greenhouse gas emissions.
Administered by the Carbon Disclosure Project on behalf of institutional investors such as the Abbey National bank, and Clerical Medical Investment Management, this initiative highlights the importance of shareholders having a good level of understanding of climate change risks and opportunities. Paul Dickinson, the project co-ordinator, points out that, "There are potential business risks and opportunities related to actions stemming from the perception of climate change that have implications for the value of shareholdings in corporations worldwide." The data to assess these issues are not always available and sometimes lack comparability or are of poor quality.
The large corporations have been asked to respond within six months, after which time Innovest Strategic Value Advisors will compile the information into a thematic and comparable report. This report will then be distributed to participating shareholding institutions and responding corporations. The report will also to be made available publicly at the Carbon Disclosure Project website.
Donna Clarke, Business Development Manager for low carbon company Greenergy, has welcomed the move, which should raise awareness of why carbon is a business risk issue. "Our experience at Greenergy is that most companies, including those considered to be environmental leaders, do not fully appreciate how the monetisation of carbon will impact on their business operations, their supply chain and their markets."
"The fact that the initiative is supported by leading investment banks will hopefully raise the stakes and put carbon on the board agenda," Clarke added. "But perhaps the financial sector should lead by example, and demonstrate how it is addressing carbon as a business issue."
