Impact Cubed pushes for more corporate environmental transparency through CDP engagement campaign
June 29, 2022, London: Impact Cubed today joins 263 investors from nearly 29 countries in urging companies with a significant environmental impact to disclose data through CDP, the global non-profit that runs the world’s leading environmental disclosure system.
Over 1,400 of the world’s highest impact companies will be engaged in this campaign. These companies cover over US$24 trillion (as of 22 June 2022) in global market capitalization and are estimated to collectively emit more than 4,800 megatonnes (Mt) of carbon dioxide equivalents (CO2e) annually.
Impact Cubed is proud to participate in CDP’s 2022 Non–Disclosure Campaign, which aims to increase environmental disclosure from companies that have either never disclosed, or stopped disclosing information to investors. Transparent corporate disclosure is crucial to directing capital towards the transition to a net-zero carbon economy.
Climate change, deforestation and water security are material issues to many industries and consistent, comparable data is key to addressing the associated risks and opportunities. Increased corporate transparency on environmental impact is a key enabler to improve company performance and create a more resilient economy.
Libby Bernick, CEO of Impact Cubed commented:
“Investors want more visibility on what they are financing in their investment portfolios, and that means companies need to be more transparent about their carbon emissions and water use. This information helps our portfolio managers understand which companies will lead or lag in the transition to a low carbon economy. We chose to engage companies through CDPs nondisclosure campaign because it’s a powerful tool that leverages the voice of all sustainable investors like Impact Cubed.”
Laurent Babikian, Joint Global Director of Capital Markets at CDP, commented:
“Engagement is critical to driving disclosure, and disclosure is the first step to environmental action. Climate change, deforestation and water security present material risks to investments, and companies that are failing to disclose their impact risk trailing behind their competitors in their access to capital.
We are encouraged by the continued growth and success of this annual campaign and the record levels of participation this year. With a series of mandatory environmental disclosure requirements on the horizon in regions including the US, UK, Japan, EU, New Zealand and India, non-disclosure will no longer be an option for many of these companies.”
Following the 2021 Non-Disclosure Campaign, a record-breaking 25% of companies engaged in the campaign disclosed through CDP, responding to at least one CDP questionnaire. The campaign demonstrates that companies are more than twice as likely to disclose data on their environmental impact when directly engaged by investors to do so.
About Impact Cubed
Impact Cubed provides analytics and investment solutions for building more sustainable portfolios with greater impact. It combines an award-winning approach to integrating impact into risk and return with technology-enhanced portfolio design and management. The outcome is a seamless approach to customized sustainable investing.
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 680 investors with over $130 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 14,000 organizations around the world disclosed data through CDP in 2021, including more than 13,000 companies worth over 64% of global market capitalization, and over 1,100 cities, states and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.