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CLAM drives corporate environmental transparency through engagement campaign

Canada Life Asset Management (CLAM) is today proud to join 263 investors from nearly 30 countries in a new campaign urging companies to disclose their environmental impact

Over 1,400 of the world’s highest-impact companies will be engaged in the 2022 Non-Disclosure Campaign, covering over US$24 trillion[1] in global market capitalisation. These companies are estimated collectively to emit more than 4,800 megatonnes (Mt) of carbon dioxide equivalent (CO2e) annually.

The campaign is spearheaded by CDP, a global non-profit that runs the world’s leading environmental disclosure system. It aims to increase environmental disclosure through CDP among companies that have either never disclosed or have stopped disclosing.

We believe that transparent corporate disclosure is crucial to directing capital towards the transition to net zero. Climate change, deforestation and water security have become material issues to many industries and consistent, comparable data is key to addressing the associated risks and opportunities. Increased corporate transparency on environmental impact is therefore vital for improving company performance and creating a more resilient economy.

David Marchant, Chief Investment Officer, Canada Life Ltd and Managing Director, Canada Life Asset Management, said:

“I am delighted to get behind this initiative. Improving transparency and disclosure will lead to better informed investment decisions and can help investors to better understand the risks associated with their investments. It can also encourage companies to change, reducing their burden on the environment as well as creating more efficient capital markets through improved access to information. I’m convinced this campaign can be a force for good.”

Laurent Babikian, Joint Global Director of Capital Markets at CDP, commented: “Engagement is critical to driving disclosure, and disclosure is the first step to environmental action. Climate change, deforestation and water security present material risks to investments, and companies that are failing to disclose their impact risk trailing behind their competitors in their access to capital.

"We are encouraged by the continued growth and success of this annual campaign and the record levels of participation this year. With a series of mandatory environmental disclosure requirements on the horizon in regions including the US, UK, Japan, EU, New Zealand and India, non-disclosure will no longer be an option for many of these companies.”

Following the 2021 Non-Disclosure Campaign, 25% of companies engaged in the campaign disclosed through CDP, responding to at least one CDP questionnaire. This is more than ever before. The campaign demonstrates that companies are more than twice as likely to disclose data on their environmental impact when directly engaged by investors to do so.

[1] Source: CDP, as at 22 June 2022