Kevin Parker, CEO, Sustainable Insight Capital Management, says, “We are pleased to partner with CDP, the world’s largest repository of corporate climate change data, to explore the relationship between corporate financial performance with respect to one of the most critical sustainability issues of our time – climate change. This analysis, one of the most extensive studies on the link between corporate profitability and climate change engagement to date, shows that industry leaders are not only taking critical steps to establish the requisite governance, management systems and environmental efficiencies to engage on climate, but that they are also generating superior profitability, cash flow stability and dividend growth for investors.”
Marc Fox, CDP advisor and co-author of the SICM report, adds, “Our analysis of CDP data in a financial context demonstrates that the top quintile of companies on CDP across global industries deliver higher underlying profitability with more stable cash flow and higher dividend growth than industry peers. We hope this analysis facilitates broader uptake by both investors and corporate investor relations linking engagement on climate change and corporate profitability.”
Bruce Kahn, Ph.D., Portfolio Manager, Sustainable Insight Capital Management, and co-author of the report, says, “Our collaboration with CDP provides further evidence of the link between climate change engagement and financial performance, another critical source of information for us when making investment decisions.”
Check the following links to read/download the Full Reports:
CDP S&P 500 Climate Change Report 2013: Investment, Transformation and Leadership
https://www.cdproject.net/CDPResults/CDP-SP500-climate-report-2013.pdf
Linking Climate Engagement to Financial Performance: An Investor’s Perspective
https://www.cdproject.net/CDPResults/linking-climate-engagement-to-financial-performance.pdf
Source: CDP.
Notes:
[1]The Climate Performance Leadership Index (CPLI) marks companies that are implementing a robust climate strategy and approach to reducing emissions.
[2] The Climate Disclosure Leadership Index (CDLI) identifies companies that are the most climate transparent. The index comprises those that score within the top ten percent for the quality of the data they disclose.
