Top finance firms call for transparency on environmental performance

A group of the world’s top finance firms with more than $130tn in assets have called on businesses to reveal data on their environmental performance, as global governments prepare to push for more transparency on sustainability.

More than 680 firms including financial heavyweights Allianz, Axa and BNP Paribas have signed an open letter today addressed to global boardrooms, asking them to disclose their environmental data via non-profit organisation the Carbon Disclosure Project (CDP).

The letter has begun distribution today and will be shipped out to more than 10,400 companies worldwide, urging boards to reveal stats on climate change, deforestation, and water security.

CDP, which runs a global disclosure programme for cities, states, and regions, said the firms that are failing to cough up environmental data are falling behind.

“These companies are becoming increasingly out of touch with reality, investor and public opinion, not just because of the regulatory stick that is approaching, but also because there are so many proven benefits to transparency,” said Paul Simpson, CEO of CDP. 

“While many companies are disclosing, setting targets and taking action across their own business operations and value chains, there is a surprisingly large part of the market still to take the vital first step of disclosure.”

The letter is the latest of CDP’s efforts to push for transparency in carbon disclosure, with a similar last year reporting a boost of 3,200 firms agreeing to report environmental data in line with CDP’s standards.

But nearly 4,000 firms – including Berkshire Hathaway, Chevron, Exxon Mobil and Glencore – failed to respond, CDP said.

The latest efforts come as governments in EU, Japan, New Zealand and India are readying to hit firms with mandatory climate data legislation, with UK businesses facing a series of mandatory measures this year.