Thursday, August 24, 2017

Corporate Environmental Financial Disclosure Tool

The current corporate reporting trend is a critical aspect of sustainability. Investors are increasingly demanding more detailed information to assess material risks and make sound investment decisions. We have seen a number of shareholder actions that demonstrate the changing landscape. Public disclosures, particularly as the relate to the environment and the climate demonstrate responsible corporate conduct. This trend growing in the US and around the world.

This kind of transparency has a remarkable capacity to change the world. However, this information is often hard to find within voluminous corporate reports.

Tools are now available to help track corporate environmental engagement. As reported by Environmental Leader, a new free website allows investors and the general public to research corporate environmental financial disclosures.  People can use the site to check out a firm's performance or compare companies.

The site is the brainchild of Envonet.com. It provides environmental and climate-related financial disclosures.

"Investors are urgently seeking more transparency from corporations about their material risks and risk management practices, particularly those related to climate change, but there are no simple tools to assist investors in collecting and assessing this information," Said Greg Rogers, co-founder of Envonet. "And, when disclosures are compared side by side, the contrast between many European companies and their U.S. counterparts leaps off the page. For investors, it makes evident which corporations are treating climate change as a material financial risk and which are not."

Utility companies included in the database are: American Electric Power, CLP Holdings, Dominion Resources, DTE Energy, Edison International, Enel, Entergy, Eversource, Exelon, FirstEnergy, Fortis, Iberdrola, NextEra Energy, PG&E, Power Assets Holdings, PPL, Public Service Enterprise Group, Southern Company, SSE, and Xcel. Oil and gas companies included in the database are: Anadarko, Apache, BP, Canadian Natural Resources, Chevron, Concho Resources, ConocoPhillips, Devon Energy, Eni, EOG Resources, ExxonMobil, Marathon, Occidental, Phillips 66, Pioneer Natural Resources, Royal Dutch Shell, Suncor Energy, Total, Valero, and Woodside Petroleum.

Envonet displays climate-related disclosures in the areas of governance, strategy, risk management and performance measurement, found in mainstream financial filings (e.g., Form 10-Ks filed with the U.S. Securities Exchange Commission).

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