Investor engagement on climate change grows

The not-for-profit organisation's research into investor attitudes regarding climate change and sustainable investment revealed the overwhelming majority of respondents (77%) factored such considerations into their investment decisions and asset allocations, while 80% said climate change was an important factor.

Half of all respondents added they were willing to ask companies to do more than disclose information and some would push for emissions reductions.

However, Mercer global head of responsible investment Jane Ambachtsheer, who collaborated with the CDP on the research, said the survey sample was likely to be self-selecting top some extent, and would therefore represent the more motivated range of investors.

She said: "The survey revealed some interesting steps being taken by very committed investors. When interpreting the results, we should bear in mind that respondents to the survey will be, on average, more engaged with the CDP and climate issues than other investors. The leaders are gaining ground over the laggards."

The survey also showed investors had difficulty integrating data on greenhouse gases, due to a lack of comparability between responses, incomplete sector coverage and the absence of a unified global reporting and regulatory framework.

Carbonetworks chief executive Michael Meehan, provider of a software platform that helps companies manage carbon emissions, commented: "The contribution that Carbon Disclosure Project is making to carbon measurement is important. However, addressing carbon is more than just about a spreadsheet.

"What's needed are strategies for managing corporate carbon emissions to achieve the ultimate goal - that of reductions. The tools to do that already exist, and corporations and their consultants need to evolve their thinking to reflect the possibility of active carbon management, versus passive measurement."

In total, 80 of the CDP's global signatories, including pension funds and asset managers, responded to the survey, which was designed by the CDP and analysed by Mercer.