London Pensions Fund Authority (LPFA) today announces that it has furthered its commitment to drive corporate environmental transparency by signing CDP’s 2021 disclosure request [across climate change, water and forests]. CDP is a global non-profit that runs the world’s leading environmental disclosure platform and holds the largest TCFD-aligned environmental database in the world.
LPFA is proud to join the growing ranks of over 590 investors with more than US$110 trillion in assets and 150+ large purchasers with over US$4 trillion in procurement spend in requesting thousands of companies to disclose their environmental data through CDP. By completing CDP’s annual request for disclosure via completion of its TCFD-aligned questionnaires, companies can demonstrate the transparency and accountability vital to tracking progress toward a low-carbon, sustainable future. Climate change, deforestation and water security have become material issues to many industries and consistent, comparable data is key to addressing the associated risks and opportunities. We believe that increased corporate transparency on environmental impact is a key enabler to improve company performance and to create a more resilient economy.
Robert Branagh, CEO of LPFA said: “The demand for corporate transparency arises from the challenge faced in all economies, to optimally allocate resources to investment opportunities. As a long-term responsible investor, we are pleased to be amongst 590 asset owners to drive corporate transparency by continuing to support CDP’s disclosure on environmental transparency. We believe the disclosure of high-quality information is critical for effective decision-making by investors and other stakeholders.”
Emily Kreps, Global Director of Capital Markets at CDP, commented: “The importance of investor engagement to drive disclosure cannot be overstated. Climate change, water security and deforestation present material risks to investments, and companies that are failing to disclose their impact risk trailing behind their competitors in their access to capital. Increasingly, investors and financial institutions require decisive data that is consistent, comparable and comprehensive. To make this possible, they expect companies to engage with TCFD-aligned standards on environmental disclosure and reporting. With business resilience and adaptation to unexpected, systemic risks exposed by the global public health crisis, the tide is rapidly turning against companies not taking note of investor demands.”
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About London Pensions Fund Authority (LPFA)
The LPFA is a defined-benefit LGPS with over 90,000 members, 135 contributing employers and, as at 31 December 2020, £6.7 billion of assets under management. Its assets are pooled via LPP together with those of the Lancashire County Pension Fund and the Royal County of Berkshire Pension Fund. LPFA and Lancashire County Council are also shareholders of the Local Pensions Partnership, a pensions service provider for LGPS and other public sector pension funds.
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with over 590 investors with $110 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 10,000 organizations around the world disclosed data through CDP in 2020, including more than 9,600 companies worth over 50% of global market capitalization, and over 940 cities, states and regions, representing a combined population of over 2.6 billion. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.