Investors representing a third of the world’s invested capital have asked more than 5,000 public companies to report their carbon emissions and climate change strategies through the Carbon Disclosure Project (CDP), the organization announced.
The 722 investors control $87 trillion in assets, an increase of 10 percent from last year’s participation. Several investors also have begun to request water and forest information, reflecting a growing awareness of the value of natural capital in the global market.
CDP says there’s a growing interest from investors in the Americas, with Brazil’s Banco do Brasil Previdência coming on as the largest new signatory with assets of more than $1 trillion. Other notable signatories include JP Morgan and Chase & Co.
In recognition of growing investor interest in protecting forests, CDP also announced it is merging with the Forest Footprint Disclosure Project to provide companies and investors with a single source of information for the interrelated issues of climate, water and forests.
Paul Simpson, CEO of CDP said the increasing number of participating investors is a testament to the economic relevance of environmental data to investment decisions. “Our expansion into different areas of natural capital, and our efforts to provide integrated information to the global market, represents vital progress toward a sustainable economy in which natural resources are valued efficiently,” he added.
Carbon Action, a CDP initiative launched in 2011 to accelerate company action on carbon reduction in high-emitting industries also has seen increased participation with more than a five-fold increase in investor signatories. This year, on behalf of 190 investors with assets of US$18 trillion, CDP will call on CEOs of 301 of the world’s largest public companies for cost-effective management and reductions of their carbon emissions.
Many investors have also begun taking interest in the “people” aspect of the triple bottom line — last year a coalition of socially responsible and faith-based investors welcomed the Securities and Exchange Commission’s rule addressing conflict minerals in supply chains.
@Bart_King is a freelance writer and communications consultant. @mikehower contributed.
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Bart King is the founder and principal at New Growth Communications. He specializes in helping sustainability leaders develop thought leadership content and strategy
Published Feb 14, 2013 8am EST / 5am PST / 1pm GMT / 2pm CET