Editors Desk

Eye on The Markets

by Laurance Allen

Over the past 7 years the Carbon Disclosure Project has become the gold standard for carbon disclosure methodology and process. And their website has become the largest repository of corporate greenhouse gas emissions data in the world.

The CDP is an independent not-for-profit organization set up to create lasting relationships between shareholders and corporations regarding the implications for shareholder value and commercial operations presented by climate change.The CDP staffs a coordinating secretariat for institutional investors with a combined $41 trillion of assets under management. On their behalf it seeks information on the business risks and opportunities presented by climate change and greenhouse gas emissions data from the world’s largest companies: a total of 2,400 in 2007.

DP leverages its data and process by making its information requests and responses from corporations publicly available; thus helping to catalyze the activities of policymakers, consultants, accountants and marketers. With free PDF downloads and useful tools like the Climate Leadership Index. The Index reveals for investors which high-impact FT500 companies have the most comprehensive climate-change disclosure practices in place, judging by each company’s response to the CDP.

CDP is well established in Europe with 360 of the FT 500 - View companies reporting through to 225 Institutional Investors representing $31 Trillion in assets under management.

Now with a New York office, headed up by Zoe Riddell, US corporations are in the early days of coming to grips with the benefits of Carbon Disclosure. Less than half of the S&P 500 companies reported last year (225), and so far only 50 Institutional Investors representing $2.7 Trillion under management have signed up for the program.

So we can expect to hear much more about this trailblazing NGO in the months ahead as their work in the US expands.