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31 May 2021 • Articles

Social Investor

Only 3% of the large institutional investors neglect climate change when investing in assets

In the sixth edition of the Institutional Investor Survey 2021, published by Morrow Sodali, the growing interest of investors in climate change becomes a determining factor when making investment decisions. Few large investors today do not take climate change into account when making investment decisions, which has been echoed by the Spanish media specialized in sustainability, Social Investor.

This is one of the main conclusions of the report which highlights the importance to improve the relationship between climate change and financial impact, in order to facilitate the understanding of non-financial information and consequently 'draw' a clear scenario on how climate change risks can affect the financial risks and opportunities for listed companies.

The relevance of environmental-related issues is reported by listed companies on the annual non-financial communications. "Investors are increasingly interested in short- and medium-term targets on carbon emissions, which help them assess roadmaps for the transition to a low-carbon economy," reports the survey.

Currently there is no common harmonization and global standards in climate reporting, risks are assessed on a case-by-case basis, the analysis and planning of scenarios are complex, according to the survey. A complexity that has required managers to build their own internal ESG analysis teams.

In the absence of an integrated model in line with the framework promoted by the European Commission, the survey reveals that the Task Force on Climate-related Financial Disclosures (TCFD) is preferred by investors.

Read more here (in Spanish only)

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