From Big Tech to Big Oil: the  trillion financial group requests environmental data from more than 1,600 companies with a significant environmental impact.

From Big Tech to Big Oil: the $29 trillion financial group requests environmental data from more than 1,600 companies with a significant environmental impact.

De’Longhi, Diasorin, Tesla, Volvo Group, Glencore, Saudi Aramco and Exxon Mobil are among the companies encouraged to report environmental data.

A record number of 288 financial institutions with assets of nearly $29 trillion, including Schroders, Euriyon Capital, BancoPosta Fondi and Pictet Group, are asking companies with the greatest environmental impact to disclose their environmental data through CDP.

The target companies, including De’Longhi, Diasorin, Tesla, Spotify and Exxon Mobil, together represent more than $21 trillion in market value*. It is estimated that it emits more than 4200 megatonnes (Mt) of carbon dioxide every year equal to more than that of all 27 EU Member States together (4145 Mt).

The financial industry’s annual non-disclosure campaign sees institutions push companies to respond to an annual disclosure request by CDP, the non-profit organization that oversees the global environmental disclosure framework. The campaign targets companies that have never disclosed their results or have stopped doing so through the CDP.

This year’s No Disclosure campaign comes as the law comes into effect in Europe and around the world. In the next financial year, EU businesses will have no choice but to declare their environmental impact.

Around 50,000 large companies and SMEs listed in the EU will have to report environmental data under the Corporate Sustainability Reporting Directive (CSRD). Among these, it is estimated that there are also 10,000 non-European companies operating in the EU[1] .

Laurent Babikian, Global Director of Data Products at CDP, said: “The growth of CDP’s Non-Disclosure Campaign shows how financial institutions can – and should – be a driving force for change. In our climate-defining decade, we have yet to see. the leadership of many companies in all sectors, from energy to automobiles and technology”.

“Companies must take action in terms of their supply chains, because the world cannot afford to ignore Scope 3 emissions, which affect the entire product life cycle. Financial institutions, including CDP, encourage companies to show how they plan to move their businesses to carbon-neutral and natural ways, to secure the future of their investment and, of course, our planet.”

Results of last year’s Non-Disclosure Campaign revealed that companies are twice as likely to disclose when engaged directly with financial institutions, according to CDP analysis. The campaign collected responses from 388 companies with a significant environmental impact, worldwide. Since the campaign was launched in 2017, the participation of financial institutions has more than quadrupled, with an average growth of one third each year.

Carol Storey, Leader of Climate Engagement at Schroders, said: “At Schroders, we recognize that environmental risks and opportunities have a significant impact on the long-term performance of companies and portfolios. For this reason, we support increased environmental disclosure and companies. companies. and we are delighted to support CDP’s Non-Disclosure Campaign 2023. By participating in this initiative, we aim to promote transparency, accountability and sustainability throughout our industry.”

Most of the selected companies were asked to at least report on their impact on climate change (72%). However, nature also plays an important role in the transition to a carbon-free economy. With more than half (55%) of the national income dependent on natural resources, corporate transparency about the impacts of forests and water is becoming a focus for financial institutions.[2] .

Babikian added, “Regular and detailed information about the overall impact of a company’s environment is important for financial institutions, not only to protect but also to enhance long-term financial and non-financial performance. The disclosure of this information will be mandatory for companies more soon. , with a range of mandatory disclosure measures coming into force not only in the EU, but also in the UK, America, Brazil and Japan.”

Financial institutions are now engaging companies to submit their responses to investors through the CDP online response system. The deadline for companies to sign is July 26.