Record number of investors targeting corporate climate change disclosures
The Carbon Disclosure Project’s 2022 Non-Disclosure Campaign has reported that more investors are targeting companies to disclose on key environmental issues such as water security and forestry.
A record number of investors engaged with companies to report on climate change, forestry and water security in 2022, a new report by global climate non-governmental organisation, the Carbon Disclosure Project (CDP), has revealed.
The report outlined the results of CDP’s 2022 Non-Disclosure Campaign, an initiative analysing the impact investor engagement has on companies and their willingness to disclose environmental data. The results of the campaign reveal that a record 260 financial institutions with nearly $30trn in assets participated, a 56% increase from last year.
Financial institutions that participated in the campaign were taken from 30 countries and engaged with 1,466 global companies to report on climate change, forests and water security. The report highlighted that 388 companies responded, which represents an 18.2% increase in the total figure that responded through the 2021 campaign.
The findings in the report also show that the proportion of companies that engaged on forests and water security increased substantially in 2022 to 35% and 51% respectively.
Claire Elsdon, CDP’s global director of capital markets, said: “This campaign shows the power of direct engagement. Financial institutions are more aware of their role in tackling the economic threats posed by the climate and nature crises.
“By pushing companies in their portfolio to disclose – some of which have huge environmental impacts – they can kickstart a fundamental and positive change in how businesses operate.”
The Non-Disclosure Campaign first started in 2017 and financial institutions that took part in 2022 include HSBC, Cathay Financial Holdings and Schroders.
Another key finding from the campaign is that companies were 2.3 times more likely to respond when directly engaged by financial institutions compared to a control group. Companies targeted by financial institutions ranged from manufacturing to fossil fuels, hospitality and health care.
This campaign shows the power of direct engagement. Financial institutions are more aware of their role in tackling the economic threats posed by the climate and nature crises.
Investor engagement
CDP’s research also highlighted that companies that disclosed for the first time due to investor engagement include: Mitsubishi Logistics Corporation (disclosed on climate), Costco (disclosed on forests), Honda (disclosed on forests and water), Levi Strauss (disclosed on water) and Samsung SDI (disclosed on water).
Companies targeted in the campaign that did not disclose through CDP in 2022 include: Tesla, ExxonMobil and Berkshire Hathaway. Net Zero Investor contacted all three for comments on their non-disclosure.
A spokesperson from ExxonMobil told Net Zero Investor that the US oil and gas company’s emissions data is reported through its 2023 Advancing Climate Solutions Progress Report, which is “shared with our investors, employees and stakeholders around the world”.
Tesla and Berkshire Hathaway had not responded by the time of publication.
