Corporate Responses to Climate Change by Sullivan Rory;

Author:Sullivan, Rory;
Language: eng
Format: epub
Publisher: Taylor & Francis Group

Institutional investors and the public policy process

The most important reason for investors to factor climate change into their investment analysis is either government support for new climate change-related industries or the existence of an explicit financial value for climate change risks and opportunities. The implication for policy-makers is that stronger policy measures will be necessary to encourage investors to integrate climate change considerations into their investment decisions; conversely, the absence of clear market signals militates against investors looking at these issues.

Public policy is also critical to ensuring that investor engagement with companies is effective. There is strong evidence that shareholder engagement (also commonly referred to as investor activism) can contribute to improvements in corporate responsibility performance. By and large, this engagement has been conducted on the basis that there is a financial case for companies to improve their social and environmental performance, i.e. where the interests of companies and society are aligned.

So far discussions on the subject of climate change between companies and their investors have followed this pattern, with this engagement primarily focused on reporting and, to a lesser extent, on encouraging companies to ensure that climate change is integrated properly into corporate strategies and risk management processes. The primary assumptions underpinning this engagement are that:

Better reporting will encourage investment managers to better manage the financial risks associated with climate change

The request for disclosure will signal to companies that investors are concerned about climate change, thereby providing an incentive for companies to reduce their greenhouse gas emissions

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.