9 June 2020
CDP publishes list of over 1,000 companies that have not reported on environmental impact to investors
The Carbon Disclosure Project (CDP) is an Investor backed organisation which issues information requests to listed companies on behalf of investors. The requests ask them to publicly disclose information on their greenhouse gas emissions, climate strategies, and policies relating to water use and deforestation. However, some companies fail to respond to the CDP information requests and the Non-Disclosure Campaign publicly lists these. As reported by Business Green in their article here 1,051 companies from 49 countries failed to respond to some or all of the information requests including Exxon Mobil, Facebook, Berkshire, Hathaway, Nintendo and Domino’s Pizza.
As reported by Business Green, 58% of the companies on the list faced calls from investors to disclose their impact on climate change, while nearly a third – including Chevron and Imperial Oil – were asked to disclose on at least two themes from climate change, forests or water security.
According to the article, Emily Kreps, global director of capital markets at CDP said “Climate change, water security and deforestation present material risks to investments, and companies that are failing to disclose their impact risk trailing behind their competitors in their access to capital. As the growth of this campaign shows, investors require decisive data that is consistent, comparable and comprehensive. To make this possible, they expect companies to wholeheartedly engage with TCFD-aligned standards on environmental disclosure and reporting. With business resilience and adaptation to unexpected, systemic risks exposed by the recent public health crisis, the tide is rapidly turning against companies not taking note of investor demands.”
In our view, the increased interest by investors to expose organisations that are not reporting on sustainability issues, is reflective of the trend toward increased concern over how sustainability matters may impact upon the future of organisations, particularly with regard to climate related matters. As pressure amongst the investor base grows, it is likely that sustainability reporting will increase and organisations would be better to be ahead of the reporting requirements, rather than falling behind.