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CDP announces new sector-focused investor strategy10 / 2016
CDP, the global environmental disclosure Not for Profit, is today announcing the launch of its new sector-focused investor strategy as part of its ‘Reimagining disclosure’ project.
Companies with more than 70% of the OECD’s (Organization for Economic Cooperation and Development) combined market capitalization currently report climate-related data through CDP and the global Not for Profit is responding to a post-Paris world with a commitment to introducing sector-based questionnaires in Q4 2017. This will drive further insights for companies and investors enabling better peer-to-peer comparison, benchmarking and investment decision-making. Companies and investors will be able to assess more clearly their response to the transition to a low carbon economy, making it easier to future-proof portfolios and drive sustainability. To enable the sector strategy, CDP plans to introduce a new reporting system which will facilitate data gathering and collection and provide the analysis and insights investors are increasingly demanding. This new infrastructure will ensure CDP is well-placed to implement the TCFD (Taskforce on Climate-related Financial Disclosures) recommendations expected in December.
Paul Simpson, CEO of CDP, said: "With a track record of more than 15 years, we understand and have been the catalyst for global climate disclosure. Delivering the Paris agreement was a major objective for us. Paris gave us the licence to go further - and we are working with investors to ensure our data and insights can go further as well. ‘Reimagining disclosure’ will highlight the risks and opportunities from the transition to a well-below 2-degree world."
James Hulse, Head of Investor Initiatives at CDP, said: "We are reimagining disclosure to increase value for investors. With continued support we are now able to commit to a sector-led strategy which will allow companies to benchmark themselves against peers and highlight where innovation can drive change. Our data and analysis will inform investment decision-making and risk management and accelerate the transition to a low carbon economy."
The 'Reimagining' strategy comes on the back of the new investor portal, the complete emissions dataset, and award-winning investor research series which has focused on high-emitting sectors such as automobiles, utilities and steel, with oil and gas due for release later this year.
CDP has more than 800 signatories with $100 trillion of assets with access to the unique CDP database, with over 2,500 of the largest listed companies providing data. Major multinationals and investors such as Hermes Investment Management view CDP as a valuable disclosure platform.
Bruce Duguid, Director, EOS, Hermes Investment Management, said: “CDP disclosures provide the best source of data for investors with in-depth data and analysis on climate and other environmental risks. We welcome this initiative as the move to sector-based disclosure and reporting will enable investors to more easily compare environmental performance."
For a link to the new portal click here: https://www.cdp.net/en/users/sign_in
For a link to the sector research series click here: https://www.cdp.net/en/reports/archive