Corporate disclosure on carbon emissions and other environmental issues is becoming increasingly important, and may be a key concern for investors when considering possible investments.
The Conference Board of Canada announced the results of the 2007 Carbon Disclosure Project(CDP)Canada report in Toronto today. Chaired by Jeffrey Simpson, columnist for The Globe and Mail, the event included keynote presentations by Lynn Patterson, president and head of global markets Canada at Merrill Lynch and Alan MacGibbon, managing partner and chief executive at Deloitte & Touche LLP, among other sessions.
The CDP analyzes the level and quality of company disclosure on climate change-related risks and opportunities, based on a survey of the 200 most valuable companies by market capitalization listed on the Toronto Stock Exchange. This year, 88 Canadian companies responded—a significant increase from 78 respondents last year.
Organizations are starting to “walk the talk” when it come to carbon emissions and disclosure. The Canadian CDP results indicate that 64% of respondents have a formal greenhouse gas(GHG)emissions management system in place, and 70% of respondents provide annual GHG emissions data.
And investors are starting to take notice. David McCann, vice-president, head of relationship investments of the CPP investment board, expressed a conviction that environmental, social and governance factors can have a positive influence on shareholder value over the long term. He also noted that the Board analyzes climate change risk as part of their due diligence when considering possible investments for the Canada Pension Plan.
The overall message isn’t new, but bears repeating: investors, organizations, and the government must work together to encourage and enforce environmentally friendly, socially responsible behaviours in the global marketplace. Comments Jeffrey Rubin, chief economist and chief strategist, CIBC World Markets: “This is a global issue. It requires a global solution.”
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