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Taking emissions into account

A group of institutional investors in the UK have asked the world's 500 strongest companies to disclose information on their greenhouse gas (GHG) emissions. Representing the investors, the Carbon Disclosure Project (CDP) has sent a letter to the companies asking them to provide investment-relevant information concerning their ghg emissions within six months.

The investors have taken a serious view of the ghg emissions as the market values of companies are being increasingly affected by their environmental performance. "There are potential business risks related to climate change which can have implications on the value of shareholdings in corporations worldwide,' said Paul Dickinson, the project coordinator.

The information received will be analysed to compare such risks and opportunities across different sectors and locations by Innovest Strategic Value, a New York based corporate advisory group. In another study for the US electricity utility sector, Innovest had found that companies with stronger environmental performance generated 10 per cent greater shareowner returns.

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