Poor carbon disclosure ‘hampering green investments’

Poor carbon disclosure among big companies is hampering green investments. Two thirds of institutional investors want to invest more money into low carbon markets but a lack of available information on companies’ […]

Register now!

By Jonny Bairstow

Poor carbon disclosure among big companies is hampering green investments.

Two thirds of institutional investors want to invest more money into low carbon markets but a lack of available information on companies’ climate credentials is getting in the way, according to a new survey from HSBC.

The bank contacted around 300 investment institutes and 300 corporate firms.

Results showed less than a quarter of businesses surveyed disclose their environmental impact, making it very difficult for investors with green ambitions to accurately assess their intentions and successes.

Only 13% of corporate firms said they have green financing strategies in place.

That means around 75% of investors who wanted to make green investments saw significant barriers to opportunities.

However, a quarter of the firms that do not currently disclose aim to do so within the next year. HSBC suggests this is likely due to a result of increased pressure from new regulations, increasingly climate-conscious investors and incentives such as tax breaks.

Carbon pricing is also becoming a more popular feature of green strategies.

Andre Brandao, Head of HSBC’s Climate Business Council, said: “Moving to a low carbon economy depends on a strong ecosystem for green financing and investment. 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.”