Global Framework for Climate Risk Disclosure
CeresPublished:
October 21, 2006
This document, published by an alliance of 14 large institutional investors and other organizations representing "trillions in assets," outlines a framework to address what they called "a widespread problem": not enough companies are reporting adequately on their climate policies, programs, and progress -- and the implications to shareholders -- that investors need to analyze climate risk and opportunities in their portfolios. Despite the rising interest in corporate climate performance, it turns out that fewer than a dozen Fortune 500 companies have done comprehensive climate risk reports to date for shareholders, virtually all of them by electric power companies.
The framework asks companies to measure their total and projected greenhouse gases, provide a strategic analysis of climate risk, assess the physical risks of climate change to their companies, and conduct a risk analysis related emerging climate regulations in the U.S., Europe, and elsewhere.