Two thirds of institutional investors want to make low carbon and climate-related investments, but find themselves hampered by a lack of environmental disclosure amongst firms, according to a recent HSBC survey.
Forms of climate disclosure include schemes such as the Carbon Disclosure Project, and are expected to rise in the coming year.
The survey included nearly 300 institutional investors and 300 corporates, and found that less than a quarter of companies currently report their environmental impact.
Three quarters of investors who intend to put more capital into low carbon and climate-related investments therefore see a lack of credible investment opportunities.
According to HSBC, this is about to change:
“A quarter of companies that do not currently disclose their environmental impact plan to do so in the coming year; half see their disclosure around climate risk increasing; and of the half of firms that say they have strategies in place to actively reduce their environmental impact, 34 per cent plan to disclose it in the next 12 months.”
Andre Brandao, Head of HSBC’s Climate Business Council, commented: “This survey suggests there is a significant pool of capital available to firms with strong green credentials, but an absence of climate disclosure by companies, and a shortage of investors accessing research into this market, is putting a brake on allocation.”
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How Envantage can help
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