More than 1,600 companies identified by the nonprofit platform CDP as having the greatest impact on the environment do not disclose environmental data, the platform said when launching its latest campaign to get companies to provide this information.
CDP, which standardized the data to allow investors and others to compare companies’ performance in areas such as climate change, water and deforestation, said 288 financial institutions with about $29 trillion in assets would write to the companies urging them to make the data public. .
The companies targeted by the 2023 campaign include companies that it has repeatedly failed to disclose, such as Exxon Mobil, Glencore and Caterpillar, CDP said in a statement.
Exxon said it has a plan to “reduce emissions to support a net-zero future while increasing value for our shareholders and stakeholders.”
In an emailed statement, the oil giant said that between 2016 and the end of 2021, it reduced emissions from its own operations and lowered the methane emissions intensity of operating assets, and increased the amount it plans to invest in emissions-reduction initiatives.
Glencore declined to comment.
Caterpillar did not respond to a request for comment.
Collectively, non-exporting companies emit an estimated more than 4,200 megatonnes of carbon dioxide equivalent per year — roughly equal to the greenhouse gas emissions of the United Kingdom, European Union and Canada combined, according to the CDP.
CDP helps small groups of shareholders stand up to companies and ramp up pressure on boards to listen, said Claire Elsdon, joint global director of capital markets at CDP.
It said financial institutions need the data to “support risk management practices, track portfolio alignment to net-zero goals and unlock opportunities related to sustainability.” “These applications can not only secure long-term profitability, but also enhance it,” said Elsdon.
Since its launch in 2017, CDP has expanded the number of companies eligible for disclosure. This has resulted in more non-disclosure companies being targeted this year than in the 2022 campaign.
Despite the progress made, detection remains an issue in high-emitting sectors and it will be difficult to get laggards to provide data, she acknowledged.
Generally, about 50 percent of companies across all industries disclose environmental data, Elsdon told Reuters.
The 2022 campaign drew responses from 388 of nearly 1,500 targeted high-impact companies, and CDP said companies were 2.3 times more likely to disclose when directly engaged by financial institutions.
Investors targeting non-disclosure companies this year include Sumitomo Life Insurance, AQR, and Legal and General Investment Management.
