A dozen European investors have called on EU leaders and politicians to upgrade corporate reporting so that it delivers better climate change and environmental information to financial markets.
The statement, signed by a group of investors but still open for more signatures, notes that “present reporting requirements fall short of enabling their current and potential investors to differentiate investments based on companies’ climate and environmental performance”. It also states that many investors want to make a positive impact on the environment and society through their investments in sustainable companies, but that they must also be able to “minimise their exposure to current and future sustainability risks faced by their investee companies”.
The statement goes on to say: “Although significant progress has been made, corporate information and data on how businesses affect, and are affected by, climate change and environmental issues does not reach financial market participants at the scale nor level of comprehensiveness and comparability required.”
The signatory investors call on EU policymakers to:
- align corporate reporting with the recommendations of the Task Force for Climate-related Financial Disclosures (TCFD) to mitigate financial risk;
- create a level playing field across the EU by implementing consistent corporate reporting requirements like those of financial reporting;
- standardise sector-specific reporting metrics that increase comparability and consistency and enable tracking progress against public policy targets and clearly defined time horizons; and
- address the shortcomings of the European corporate reporting legislative framework by stressing policy coherence between investor duties and corporate reporting.
The statement is part of the EU's 2050 climate neutrality plan. It was launched during a conference, hosted by the European Commission, on the future of corporate reporting as part of its fitness check. The first signatories of the open statement are:
- ACTIAM N.V.
- Arkitekternes Pensionskasse
- AXA Investment Managers
- Candriam Investors Group
- Caisse des Dépôts
- Pensionskassen for Jordbrugsakademikere og Dyrlæger
- PKA A/S
- RobecoSAM AG
- Sampension Livsforsikring A/S
- Schroders plc
CTMfile take: The statement was coordinated by CDP (formerly the Carbon Disclosure Project). To sign, or for any questions or further information, please contact: Nadya Dedikova, Public Affairs Officer, CDP Europe: firstname.lastname@example.org; +32 2 893 92 20.
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