sri-advisor.com
where checking accounts rebuild communities
Back to homepageInstitutional ReportsSRI Financial Professionals DirectoryToolsNewsSRI Performance and TrendsAbout Us   
News


February 10, 2011
CDP Sends Requests to Companies for Information on Climate Change and Water
    by Robert Kropp

Support from institutional investors for requests for information on water use, now in its second year, more than doubles to 354, with $43 trillion in assets under management.


For the ninth consecutive year, the Carbon Disclosure Project (CDP) has sent requests for climate change information to the world's largest companies. In 2011, the organization's request for climate change information was sent to more than 4,800 publicly listed companies, on behalf of 551 institutional investors with $71 trillion in assets under management.

2011 also marks the second year that CDP has sent requests for water use and management. This year, more than 400 companies received requests for water information. Of note is that fact that the number of institutional investors supporting the
CDP Water Disclosure has more than doubled since last year, to 354 with $43 trillion in assets.

In a
press release, CDP noted that a report published last year found "that, all other factors being equal, the greater a company's greenhouse gas (GHG) emissions the lower its stock value."

In the report, the authors "document investor relevance for emission disclosures," and state that their findings "should be of interest to companies and regulators about whether…the absence of GHG information might place company officers in jeopardy for not disclosing material facts or circumstances or satisfying their duties as fiduciaries."

In addition to referencing such findings, the CDP press release also noted the benefits documented thus far in reducing climate change risk in investment portfolios.

"The FTSE CDP Carbon Strategy All-Share Index has outperformed the standard FTSE All-Share by 1.5% in the three years to the end of 2010," the press release stated, "And the FTSE CDP Carbon Strategy 350 Index has outperformed the standard FTSE 350 by 1.4% over the same period."

CDP's chief executive Paul Simpson stated, "It is clear that the effective management of both carbon and water will have a direct impact on a company's ability to compete and grow in the future. Companies that do not take action now will fall behind their peers who are already beginning to capitalize on the opportunity that the management of climate change and water brings."

 

 
Home
| Reports | SRI Financial Professionals Directory | Tools | News | SRI Performance and Trends | About Us | Contact
© SRI World Group, Inc. - All rights reserved
Terms of use - Privacy Policy - OneReportTM Network