Pressure growing for more risk management transparency

Canadas largest companies are more responsive than they were a year ago to investor requests regarding carbon risk strategies, but the disclosed information still falls short of investor requirements, according to the Carbon Disclosure Project 2007 (CDP): Canada 200 Report.
The research shows that risk managers need to be aware of growing pressure from investors for transparency and disclosure when developing and implementing carbon risk management strategies.
The CDP is the worlds largest collaboration of institutional investors including 30 based in Canada, a statement from the Conference Board of Canada (CBC) says.
In February, the CDP requested disclosure of carbon risk management strategies from 2,400 companies around the world, including the 200 most valuable companies by market capitalization listed on the Toronto Stock Exchange.
Of the 200 Canadian companies that received the CDP information request, 45% responded, the CBC notes. Last year, the response rate was only 28%.
Although companies are responding to investor demands for information, important financial data continues to be largely absent, David Greenall, principal research associate at the CBC, said in a statement. A mere 14% of companies provided financially relevant information, such as the cost of reducing emissions and meeting mandatory emissions reductions targets.
Larger companies, and those with higher levels of greenhouse gas emissions (GHG), provided more complete responses in general as compared to small and mid-capitalization companies and low GHG emitting companies, the statement adds.
According to the Canada 200 Report, 88% of respondents indicated that climate change presents business risks, while 86% see opportunities, the CBC says.