88 investors with nearly US$10 trillion assets are targeting companies that are not transparent enough about their environmental impact, and pushing them to disclose this information through CDP, the non-profit global environmental disclosure platform.
The investors are targeting 707 companies with US$15.3 trillion market capitalisation across 46 countries for not reporting their climate change, water security and deforestation data.
This includes Exxon Mobil, BP, Chevron, Amazon, Volvo, Alibaba, Qantas Airways as well as palm oil company Genting Plantations Bhd.
These companies have been selected because of their high environmental impact and lack of transparency on these issues to date.
546 companies are being targeted to disclose on climate change, 166 on water security and 115 on deforestation.
Candriam, HSBC Global Asset Management, Investec Asset Management, Environment Agency Pension Fund, Cathay Financial Holdings, Amundi, NN Group and Washington State Investment Board are among the investors that will be engaging these companies.
The push for corporate transparency
This investor engagement is part of CDP’s 2019 Non-Disclosure Campaign, which aims to drive further corporate transparency around climate change, deforestation and water security, by using shareholder influence to push companies to respond to CDP’s disclosure request.
The most targeted industry for climate change disclosure this year is the Services industry (27% of all companies), followed by Manufacturing (18%) and Fossil Fuels (12%).
For water security, the most targeted industries are Manufacturing (26%), Retail (23%) and Fossil Fuels (11%), while for deforestation, it is Retail (30%), Food, Beverage & Agriculture (26%) and Manufacturing (16%).
Overall, the US is home to the most companies being targeted in the campaign (20%), closely followed by Australia at 16%.