Carbon Disclosure Project (CDP) Key Actions
Climate Risk Disclosure by the S&P 500
In 2006, Calvert provided additional funding and in-kind support to CDP, through the Investor Network on Climate Risk, to extend the CDP to the entire S&P 500 Index, increasing the reach of CDP in the United States by more than 250 companies.
Investor Integration of Climate Risk Data
On March 6, 2009 the CDP released the findings of a global survey seeking to capture information on investors’ use of climate risk data. The Investor Research Project report reflects responses from 80 firms, including asset managers, pension funds, insurers and sustainable and responsible investment funds including Allianz, AXA Group, BlackRock, Goldman Sachs, Hermes Investment Management, and Swiss Re. Calvert and the HM Consulate General (of the British Government) sponsored the report (written by Mercer) and commented on numerous drafts of the report.
The report showed that climate risk data—such as the information companies provide to the CDP on emissions reduction targets and corporate strategies to deal with the impacts of climate change—is factored into investment decisions and asset allocations at 75 percent of the investment firms surveyed. Four out of five investors stated that climate change is a key issue facing the performance of its portfolio.
The report also highlighted the importance that investors place on the CDP, specifically around carbon risks and potential legislation, since it is the leading source of climate change information. While some firms are currently using climate risk data in corporate engagement activities, many other investors stated that they intend to progress towards fully integrating the data into their financial analysis.