Investors managing more than USD 130 trillion in assets have reportedly written to over 10,000 firms to submit environmental data to CDP, the non-profit disclosure platform.
The move comes as wealth managers demand better insights on climate change, water security, and biodiversity to assist them in analyzing the company board's performance as the world seeks to control human-driven global warming.
While more firms are accomplishing net-zero carbon emissions by 2050 and are being pursued to safeguard the vulnerable ecosystems of the world, many have refused to fill out CDP’s annual data request so far.
In 2022, over 680 financial institutions added their opinion to the data request, including Amundi, the biggest asset of Europe. Existing disclosures cover more than 13,000 firms covering nearly 64% of the capitalization of the global market.
Over 3,300 of the firms will be getting this request for the first time whereas over 4,000 will obtain a repeat request after failing to respond in 2021. The first request was issued back in 2002.
According to the Chief Executive of CDP Paul Simpson, many firms are revealing environmental information, setting objectives, and acting throughout their value chains and business operations. However, a large section of the market is yet to take the crucial first step of disclosure.
The process of CDP disclosure takes the form of sector-specific questionnaires which assure that index providers, rating agencies, and investors gain access to standardized data while global regulations on mandatory reveals are still being assessed.
Jean-Jacques Barbéris, Amundi’s Head of Institutional and Corporate Clients Coverage & ESG Supervisor stated that the company requires consistent, comparable, and clear data for its research, investment decision-making, product development, regulatory compliance, and corporate engagement. Barbéris added that the company must attain its climate goals.
For the record, CDP is a non-profit charity that operates global disclosure for investors, cities, companies, regions, and states.
Source credit:
