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.”