A group of nearly 300 financial institutions representing almost $29 trillion in assets are urging some of the world’s highest impact companies, including Exxon, Chevron and Caterpillar, to disclose environmental data on themes including climate change, water and forests, through the CDP environmental disclosure platform.
The initiative is being coordinated by CDP, which has led an annual “Non-Disclosure Campaign” (NDC) since 2017, targeting high impact companies that have failed in the past to respond to disclosure requests.
CDP runs a global environmental disclosure system, enabling investors and other stakeholders to measure and track organizations’ performance in key environmental sustainability areas including climate change, deforestation, and water security. In 2022, more than 18,700 companies disclosed environmental data through CDP, up more than 40% over the prior year.
The current campaign has drawn a record 288 financial institutions to directly engage over 1,600 companies to disclose environmental data. The targeted companies are spread over 51 countries, and represent a combined $21 trillion in market capitalization and an annual emissions footprint estimated at over 4,200 megatonnes of CO2e.
According to CDP, more investors have been joining the campaign as mandatory disclosure regulations approach in multiple regions, increasing pressure on companies and financial institutions to assess environmental impacts, risks and strategies.
Claire Elsdon, Global Director, Requesting Authorities – Capital Markets, CDP, said:
“Despite ongoing discourse over the role of ESG in financial decision-making, the continuous growth in supporters of the CDP’s non-disclosure campaign demonstrates that financial institutions worldwide require data to support risk management practices, tracking portfolio alignment to net zero goals and unlocking sustainability-linked opportunities. These uses can serve to not only safeguard but also boost long-term profitability.”
The organization also highlighted the effectiveness of the campaign in motivating companies to provide information. The 2022 campaign drove responses from 388 high environmental impact companies, with CDP analysis indicating that companies that were directly engaged by financial institutions were 2.3 times more likely to disclose.
Companies targeted by the campaign will be asked to disclose on at least one of the priority themes of climate change, forests, water. 72% of companies will be asked to disclose on climate, while 28% will be requested to disclose on water-related impact, and 26% on forests. Several companies who have previously disclosed on climate change, including bp, Amazon and BMW, will be asked to disclose across all three themes.
“CDP’s financial institutions-led non-disclosure campaign continues to raise demand for corporate transparency and provide a powerful incentive for companies to step up their environmental reporting and action. The unprecedented support for the campaign signals recognition that robust transition plans necessitate higher rates of transparency across all segments of the environment, and a holistic understanding of financial risks, to better future-proof operations and accelerate the path toward a net-zero, nature-positive global economy.”